Bill for Fixed Asset Items
Dean DeBruin
We purchased 4 reserved seating signs at $15.44 each. Should these be
Fixed Assets, or are Fixed Asset items only intended for larger, more
expensive items?
Dean
Laura
"Dean DeBruin" <dea...@gmail.com> wrote in message
news:D1pMm.17294$cd7....@newsfe04.iad...
Apparently Intuit does not want users to use the quantity field when working
with Fixed asset Items. I found this info in the help file:
You can record information about your asset as you pay for it from any one
of the following:
Items tab of the Enter Bills window
Items tab of the Write Checks window
Items tab of the Enter Credit Card Charges window
Item column of the Purchase Order window
Note: Transactions using fixed assets do not support QTY or Quantity.
I have no experience with this but I suspect that it may have to do with the
Fixed asset manager where you are expected to enter each asset as a separate
entry into the system.
As for whether or not these are fixed assets that is a different issue. Most
companies set a minimum threshold for assets somewhere between $300 to
$1000. Anything below that threshold should just be expensed. Given that
your signs are well below any reasonable threshold, these should just be
expensed.
--
Laura
Haskel LaPort
You can capitalize any dollar amount you want. Bills do not have a quantity
field. Fixed assets are fully maintained in the Fixed Asset Manager module
if you have the Accountants Edition of QuickBooks. You can also keep record
of fixed asset purchases in the Fixed Asset Item List.
Haskel LaPort
"Laura" <inv...@sample.invalid> wrote in message
news:hdum6v$guf$1...@optima5.xanadu-bbs.net...
I would not advise my clients to only capitalize fixed assets costing in
excess of $1,000.
>
>
> --
> Laura
>
>
>
Haskel LaPort
If you set up an non-inventory item that posts to the fixed asset account of
your choosing then you can enter a quantity when placing that item on a
vendor bill.
Laura
news:4b02f886$0$31275$607e...@cv.net...
What minimum $$ do you advise your clients to capitalize fixed assets?
Haskel LaPort
"Laura" <inv...@sample.invalid> wrote in message
It depends on how I bill them. Those on fixed retainers, as high as
possible, those billed hourly, if it lasts for more than one year it gets
capitalized :)
paulthomascpa
"Laura" <inv...@sample.invalid> wrote
> "Haskel LaPort" <QBFa...@gmail.com> wrote
>> "Laura" <inv...@sample.invalid> wrote
>>> As for whether or not these are fixed assets that is a different issue.
>>> Most companies set a minimum threshold for assets somewhere between $300
>>> to $1000. Anything below that threshold should just be expensed. Given
>>> that your signs are well below any reasonable threshold, these should
>>> just be expensed.
>>
>> I would not advise my clients to only capitalize fixed assets costing in
>> excess of $1,000.
>
> What minimum $$ do you advise your clients to capitalize fixed assets?
You should advise clients to capitalize purchases based on the relevancy to
the company and the facts and circumstances.
Clearly for a start-up company buying a $300 desk , it's a major purchase
that should be booked to the balance sheet. A company with $10 million in
sales and $3 million in fixed assets already booked, probably expensing a
$300 desk is appropriate.
If the small company gets audited, it will be something the auditor notices,
and denying the deduction, making them book and depreciate that desk, it's
going to be a significant tax difference that won't go unnoticed by the
owner - and of course, it's your fault - end of client relationship. Better
to book it and take Section 179 if allowed than risk it.
--
Paul Thomas, CPA
www.paulthomascpa.com
zouze
http://www.rockryno.com/quickbooks/Re-Bill-for-Fixed-Asset-Items-8650-.htm
:
Accounting Software Design and Implementation
http://accounting.zouze.com
-------------------------------------
Laura wrote:
You should look for that screen in setting up the threshold so that you
can confirm.
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