The process that you use to sell a fixed asset depends on how
you track the asset's cost and depreciation. For example, if
you track fixed assets by using fixed asset items, you must
record the sale of the fixed asset item; while
if you use a fixed asset account only to track your fixed assets,
you can jump directly to recording the sale with
a general journal entry.
should I use fixed asset items?
If you use items to track your fixed assets, first
follow these steps. If not, skip to "If you track
fixed assets with fixed asset accounts", below.
Go to the Lists menu and click Fixed Asset Item List.
Click Activities at the bottom of the list and click Create Invoices.
If prompted for help on choosing a sales form, click No.
Enter the Customer:Job and the date.
In the Item column, display the Items list and select the asset
that you want to sell.
In the Amount column, enter the asset's sale price.
Choose Save & Close.
At the prompt about entering more information, click Yes. The
Edit Fixed Asset Item window is displayed.
Mark the asset as sold.
To do this task
If necessary, go to the Lists menu and click Fixed Asset Item List.
Select the fixed asset item you want to mark as sold.
Click Item at the bottom of the list and click Edit Item.
Click the Item is sold checkbox.
(Optional) Click Item is inactive.
When you make a fixed asset item inactive, QuickBooks keeps the information
associated with it but hides it on the list and removes it from any drop-down
lists that use items. You can make an item active again at any time.
Enter the Sales Date.
Enter the Sales Price.
Enter any Sales Expense.
(Optional) Add any other information you want to record; for example, a note
about the sale in the Notes field.
Mark the asset as inactive.
Reasons for hiding an item
Over the course of your business, you'll have
items or services that you no longer sell, or a fixed
asset that you no longer own. You might think that
deleting these items will make your Item
List easier to manage. However, if you want to delete
an item, it can cause you to lose valuable historical
information about your business. For this reason,
better to hide the item in the list by
making it inactive.
You can reactivate (show) an item or see all items at any time.
Go to the Lists menu and click Item List.
Double-click the item you want to hide.
In the Edit Item window, click Item is inactive.
Other ways to remove an item
Showing an item in the list again
Important: If your accountant will update your company
file with QuickBooks Fixed Asset Manager, you can stop now. If your
accountant does not use QuickBooks Fixed Asset Manager, follow the
Before you enter the sale of the fixed
Before you enter the sale of a fixed asset, you must know the book value of
the asset on your books. If you've been tracking the asset by name, do one
of the following:
If you've tracked everything about the asset in a single asset account,
select the account in the chart of accounts, click Reports at the bottom of the list, and then click QuickReport. The report shows all costs and depreciation entries. The
total amount is the current book value. Make a note of this amount.
If you've tracked the accumulated depreciation of the asset in a
depreciation subaccount, select the account in the chart of accounts, click Reports at the bottom of the list and click QuickReport. The report shows all depreciation entries and the total depreciation for this asset. Make a note of the total depreciation.
If you've tracked the asset cost (or value as of your start date) in a
different asset account, double-click the account in the chart of accounts.
Make a note of the cost (or starting value).
Note: If you've tracked the asset with a fixed asset item and
your accountant has updated your company file with the QuickBooks Fixed Asset
Manager, you need not follow these steps. To see the year-end book value for
the asset, go to the Lists menu and click Fixed Asset Item List. Select the asset in the list, click Item
at the bottom of the list, and then click Edit to display the depreciation and book value for the asset as calculated by the Fixed Asset Manager.
Go to the Company menu and click Make
General Journal Entries.
Click the Account drop-down list and choose the
fixed asset account or subaccount where you track the cost or starting value
of the asset.
In the Credit field, enter the cost (or starting
value) if you track depreciation in a separate asset account. Otherwise,
enter the current book value of the asset as obtained from the QuickReport.
(Optional) In the Name field, enter the name of
If you track accumulated depreciation in a separate subaccount,
fill in a second line.
In the Account column, choose the fixed asset subaccount where you track the
accumulated depreciation of the asset.
In the Debit column, enter the total accumulated depreciation of the asset
that you obtained from the QuickReport.
(Optional) In the Name column, choose the name of the asset.
Enter the selling price on the next line.
In the Account column, choose the bank account in which you deposited the
money from the sale.
In the Debit column, enter the actual amount that you deposited. This amount
may be higher or lower than the current book value.
Press Tab so that QuickBooks fills in the difference in the Debit or Credit
field of the next line.
Enter the net gain or loss on the next line.
In the Account column, choose the other income
account for capital gains and losses.
Save the entry.
tracking and the Fixed Asset Manager
a loan to a customer