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Handling Depreciation of equipment in contract service

We build waste water treatment systems. Some jobs are contract service, we retain ownership of the equipment and bill by the gallon. We need to depreciate the equipment over a number of years. It has been suggested that we create an assembly item for the different pieces of equipment, and depreciate that. Some equipment like tanks are bought specifically for the job and are not inventory items. What might be the best way to do this? Can we put non-inventory items into an assembly to avoid the problem?

Thanks,

Gary H. Lucas

Reply to
Gary H. Lucas
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No, but what you should do is call your accountant and get some professional advice.

Reply to
Allan Martin

The accountants brought this issue to our attention. We are trying to figure out how to solve it in QuickBooks.

Gary H. Lucas

Reply to
Gary H. Lucas

Well you need more professioanal advice other than "you can't expense systems that you build and retain ownership in, you must depreciate them". Ask you accountant about making journal entires.

Reply to
Allan Martin

I agree. When your accountant does how to do something in QB ask him/her to provide you with the appropriate entry in journal entry format. Then you should be able to figure it out in quickbooks.

Reply to
Laura

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