Entering a depreciation transaction

Important: Determining the amount of depreciation to deduct can be a complex process, and the IRS rules on the subject change often. Ask an accountant for help in figuring actual depreciation amounts.

To enter a depreciation transaction:

  1. Choose Lists > Chart of Accounts.
  2. Select the subaccount that tracks accumulated depreciation for the asset you're depreciating.
  3. Choose Use Register from the Action pop-up menu ( image).
  4. Enter the transaction in the bottom of the register:
    • Enter the depreciation amount as a decrease in the register.
    • In the Account field, enter the expense account you set up to track depreciation.

Asset

Your company assets are the things that your company owns.

QuickBooks distinguishes between two types of assets:

Affect on your accounts

In the asset's fixed asset account, QuickBooks subtracts the depreciation amount from the current value of the asset.

In the account that tracks depreciation, QuickBooks enters the depreciation amount as an increase to your company's depreciation expense.