How to Record the Purchase of a Financed Asset

How to record the purchase of a financed asset in Quickbooks. You will come across this at some point - you buy an asset for your business and you finance it. How do you record it in Quickbooks? What if there is no down payment? Then how do you record the purchase of a financed asset in Quickbooks? What if there is a down payment? Do you just record the down payment? What about the total cost of the asset and what about the loan?
This video, how to record the purchase of a financed asset in Quickbooks, walks you both scenarios - one with and one without a down payment. It also shows you 2 different ways to record the purchase of a financed asset in Quickbooks.

[@QbuniversityOrg]

4 Simple Steps to Learn Quickbooks Guaranteed - www.QBUniversity.org/Masterclass

[@marketbuy]

Great stuff! It’s now year end. I need to do asset depreciation on my new vehicle that I purchased and paid in full for $56K on Feb 1, 2023. I need to write off $11K in asset depreciation for the first year. I looked at your video history and was not able to find it. Maybe it was you or someone else that created the asset depreciation video. If you have not done an asset depreciation video, will you please do one for us to see? 🙏

[@QbuniversityOrg]

Yep. I thought I had done one but maybe not.

[@familygernand9027]

Quick books online question. I have a friend that when he received payments but did not record the deposit (it went to Undeposited funds). How do I fix this? Its been going on for about 8 months now. He records payment towards a invoice and it now sits in undeposited funds. But the bank statement is already reconciled by him applying the Bank feed. I want to help him get his books in order.

[@TheMeditationRoom365]

You can change the account the money is being deposited into. If it’s already defaulted to post payments to UF, change it to your checking. If the payments are not in the checking register, you can use AJE or Make Deposit feature to move funds out of UF and into the checking. If checking account has been reconciled, and it doesn’t show the payments received - undo the recons and post the payments as described above and then reconcile.

[@mauriciojoyel1055]

Nice Video! One question though. Could you explain how it would be incorrect to just record the down payment into the check register, then us a fixed asset account to record it?

[@QbuniversityOrg]

Do you mean entering all in the check register? This is essentially the same as the check I wrote in the example

[@mauriciojoyel1055]

@@QbuniversityOrg I see, if that's the case, then you've answered my question.

[@user-yu7bg9su6h]

Should Employee retention credit (ERC tax credit) be categorize as other income? or something else

[@QbuniversityOrg]

It’s classified as Other Income

[@TheMeditationRoom365]

Hi there! Would you be able to make a video on how to record an operating lease of vehicle?

[@QbuniversityOrg]

Sure thing. But really all you have to do is record the lease payments as an expense (for an operating lease)

[@TheMeditationRoom365]

@@QbuniversityOrg understood, thank you! We wouldn’t book Right of Use of the asset and a liability for the 2 Yr lease amount, correct? Instead, you’re recommending just entering the lease bill and recording the payments to Opex account. Would the Loan Manager feature be useful for this purpose?

[@QbuniversityOrg]

@@TheMeditationRoom365not if it’s an operating lease since the asset does not convey to you. If it’s a capital lease this is a different story

[@TheMeditationRoom365]

@@QbuniversityOrg thank you, sir! Excellent content, btw! We will be subscribing!