Fixed Assets: Book Depreciation and QuickBooks Journal Entries

The fixed asset register

Open the Fixed Assets app. All Assets lists the asset number, name, category, in-service date, cost, useful life, method, and status. The register covers fixed assets and intangibles. New Asset and Import Assets are on that screen. The sidebar also has Awaiting My Approval, Accounting Entries, Reports, Reconcile, QBO Sync Log, and Settings. A vendor bill approval does not add the asset. You still record it here.

1. Open Fixed Assets and select All Assets.
2. Click New Asset, or Import Assets for a register you already maintain.
3. Enter cost, in-service date, useful life, and the book method.
4. Approve the asset when the inputs match the invoice and the policy.

Book methods only

CloseFlow calculates four book methods: straight-line, double-declining balance (200%), 150% declining balance, and sum-of-the-years'-digits. Both declining-balance methods switch to straight-line when straight-line is greater, and depreciation stops at salvage value. Conventions are full-month, mid-month, and half-year. That half-year convention is a book convention, not tax half-year treatment. CloseFlow does not calculate units-of-production depreciation. It does not calculate MACRS, bonus depreciation, Section 179, or a separate tax book. The method column on the register shows the book method, such as Straight Line.

Depreciation schedule and the journal entry

Open an asset and select Schedule. The depreciation schedule shows beginning net book value, depreciation, accumulated depreciation, and ending net book value by period. Accounting Entries holds the monthly journal entry. The entry is generated from the register. It does not push on a timer. Approve the entry before it can reach QuickBooks Online or Intuit Enterprise Suite. If an admin has turned on Automatically push approved entries to QuickBooks, that approval sends the entry and a support PDF. Reopen for Editing and Inactivate are on the asset. Record a disposal or an impairment from the asset, and review that entry on its own. Then reconcile the asset and accumulated depreciation accounts to this register.