Bill for Fixed Asset Items

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.

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.

I would not advise my clients to only capitalize fixed assets costing in excess of $1,000.

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.

What minimum $$ do you advise your clients to capitalize fixed assets?

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 :)

"Laura" wrote

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.

You should look for that screen in setting up the threshold so that you can confirm.

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