Still need help entering transaction

I'm not 100% sure about this, but I think that the Fixed Asset Manager is a feature that's only in the Accountant version of QB. If you don't have that version, you'll be doing the depreciation calculations manually.

Generally, you should set up 2 accounts for a depreciable asset, one to track the cost, one for the accumulated depreciation. The accumulated depreciation s/b a sub-account of the asset cost account. I actually set up

Fixed Asset - Van Van - cost Van - accumulated depr

As explained by another, you need at least 2 Fixed Asset accounts for each class of assets (or for each major asset in some cases if you prefer), one for the cost and the other for accumulated depreciation. Some users like to make these sub accounts as described in another response, others like to make all the "cost" accounts subsidiary to one Fixed Asset Costs account, and all the accum. deprec. accounts subsidiary to another Accum Depr account, but neither method is required; your choice among the 3 methods is a matter of personal preference (yours or your accountant's).

You will also need at least one Expense account. The entry is: Debit Depreciation Expense Credit Fixed Asset Accumulated Depreciation. Some use just a single expense account, others use a separate account for each class of assets.

Canadian QuickBooks versions do not calculate depreciation, not even those editions which include the Fixed Asset Manager, so you must do these calculations manually and enter them by Journal Entry. Most users calculate depreciation once annually at year-end, others make monthly entries if the amounts are really significant. Note that depreciation for accounting purposes is not necessarily the same as "capital cost allowance" for income tax purposes. If you are uncertain, don't worry about it until your first year-end - then ask your accountant.

HST is not part of your asset cost, because you claim a credit for it on your HST return. You claim the HST on the purchase, not on the monthly payments. Your monthly payments consist of an interest expense amount and a repayment of loan principal. Some users record the correct monthly amounts of interest and principal according to an amortization table, others record a consistent monthly entry and make a correction at year-end.

If you have no previous bookkeeping training or experience these entries may be more complicated than you expect. For example - the determination of whether any part of your total expenditure can or should be recorded as an expense rather than part of the cost of the asset, which in turn affects your depreciation; amortization of the loan principal; deciding whether to make accurate monthly entries for depreciation and interest. If you are unsure, just make simple entries that you can understand, then ask your accountant at or before year-end.

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