How to Manage Fixed Assets Using Fixed Asset Manager in QuickBooks Desktop

Last Updated on October 3, 2020 by Editor Team

Do you want to manage fixed assets using fixed asset manager in QuickBooks Desktop? If you are sure about this then, you are in the right place. Here you can get detailed information to manage fixed assets using fixed asset manager in QuickBooks Desktop. So stay connected with us, and read the blog carefully.

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Before doing further activities, let me tell you, if you have not set up the fixed asset manager (FAM) on your own QuickBooks desktop, then do it first.

Important Terms You Need To Know

Here we will discuss some terms that you need to know. So, you read and understand this given term:-

Capitalization Limit:- In this, when you buy real estate to make an allowance in the form of property at the expense, then your dollar has a limit within which you can take it. Here we see an example through- purchased from $ 200 to $ 20,000 per item, depending on company size.

Fixed Asset:- Tangible goods owned by a company (ie machinery, furniture, computers, and equipment) that have a useful life of more than one year and whose value exceeds the company’s capitalization limit.

Depreciation:- After the causes of an asset’s price decline, decline, obsolescence, and imminent retirement. Usually, the depreciation is particularly applicable to physical assets like equipment and structure, etc. This loss in value needs to be tracked for tax purposes.

Disposal of Asset:- It involves refraining from stealing company property either by theft, selling, or throwing it out.

Types Of Depreciation Method

Here we have given details of this Depreciation method of three types. Read the details below and get the information:-

Straight-Line Method (SL):- This is a simple method that allocates a given amount equal to the depreciation for each time.

Declining-Balance Method (150% & 200% DB):- Allocates more depreciation expense in the early years of an asset’s life when it is newly acquired. And when the company starts, then more and more assets should be done by it, so that in the initial time of the company, work downtime and less money are used Under repair.

MACRS (Income Tax Method):- In this, we use the double-declining balance method, but you only take one-and-a-half depreciation in the first year, and then you switch to the straight-line method in the middle of the asset’s life. Because of all these, it takes 6 years to get 5 years of asset deputation.

Note:- If you want to learn more about depreciation methods, then see the website of IRS Publication 946. Because of this articles in QuickBooks have limited information about it.

Purpose Of Predefined Reports

Here we have given details of this predefined purpose. Read the details below and get the information related to this:-

ACE Adjustment Calculation:- Its purpose is to determine the total ACE convenor who is important to plan a corporation. The assets with which you are classified by category and each group within is sorted by asset number.

Amortization Schedule by General Ledger (G/L) Account Number:- The purpose of this is to see how the amortized assets are summarized as how it is going into this. Also, the assets are classified by general ledger number, and the assets within each group are sorted by number.

Amortization Schedule by User Defined (1 to 5):- Also, the purpose of this is to see the summary activity that is grouped by a user-defined classification, refined assets. Aso the assets are classified by a user-defined sector and sorted by asset number within each group.

Note:- For this, a report is issued that relates to each user-defined field you use.

AMT Adjustment Calculation:- From here, you can print the information required for AMT depreciation adjustment reporting (federal depreciation – AMT depreciation = AMT adjustment). Within each group those assets are classified by category and sorted by asset number.

Asset Disposition by Asset Sales Description:- It shows a summary of that, according to the sales statement assigned to each asset, showing the details of the dispute. Also, you can group the assets by selling the statement and within each group is sorted by asset number.

Asset, Basis, and Disposal Detail Report:- You see it on-screen when printing the property details for each property in the Property and Settlement tab.

Assets Acquired in the Current Year:- Also it is used to see a summary of all the assets purchased the current year.  In this, we are sorted on the basis of the date of acquisition within each group. And also the assets are grouped by common account number.

Depreciation Schedule by G/L Account Number:- From here you can view the activity summary for each asset, grouped by general ledger account number. And Assets are sorted in each group from the date of acquisition.

Depreciation Schedule by User Defined (1 to 5):- Nowhere in this, the purpose to view the activity summary for each asset, grouped by one user-defined category. And Assets are sorted in each group from the date. For each user-defined field that you use, there is a report

Lead Schedule by Category:- Here, the purpose of this method is that you can view the summary of the companies activity for each asset, grouped by category, in a traditional lead schedule format. And you can also ensure all assets are sorted by asset number within each group.

Lead Schedule by G/L Asset Account:- Show you the activity of each asset and the company’s turnover, then grouped by general ledger account number, in a traditional lead schedule format.  Within each group you can assets are sorted by asset number.

Lead Schedule by Location:- Main purpose to show you an activity summary for all property of your companies and also within each group you can assets are sorted by asset number.

Lead Schedule by Tax Form and Property Description:- Here show you the all activity summary for each company asset, grouped by tax form and property statement in a traditional lead schedule format. Within each group you can assets are sorted by asset number.

Monthly G/L Accumulated Account Summary:- it can show you the total cost of addition and deletions for the monthly basis and their start and end balances. This report is grouped by general ledger account. And the showing report is grouped by general ledger asset account. And those assets who do not have an account number that are grouped by “No Account Number”.

Monthly G/L Asset Account Summary:- To show the total monthly accumulated depreciation/amortization additions and deletions, and their beginning and ending balances. This report is grouped by General Ledger Accumulated Depreciation and Amortization account. Assets without assigned account numbers are grouped by “No Account Number”.

Monthly G/L Expense Account Summary:- To see the total monthly depreciation/amortization expense additions and deletions, and beginning and ending accumulated depreciation and amortization balances. This report is grouped by General Ledger Depreciation and Amortization Expense account. Assets without assigned account numbers are grouped by “No Account Number.” Note: After the data are entered to this report will appear from the list.

Personal Property Schedule by Year of Acquisition:- To view all activity summary of depreciation amounts of the companies for assets that you marked as personal property. According to the assets are grouped year each asset was placed in service and sorted according to the acquisition date within each group of assets.

Projection by Category:- It will show you the five-year projection for each asset. Assets are grouped by category and sorted by asset number within each group.

Remaining Basis Over Remaining Life Report:- Here to identify the assets that were not fully depreciated yet. And within this report of the assets are grouped and sorted according to the category.

Conclusion

In this article, we have discussed important terms of FAM (Fixed assets manager), types of depreciation methods, and the purpose of predefined reports. Here is your easy recording, with the given details that will help you to maintain the fixed assets. Hope you will understand now how to manage fixed assets using fixed asset manager in the QuickBooks Desktop.  And if in case, you face any problem in this blog, then you can get our ProAdvisor support through our toll-free number +1-877-715-0222.

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How to Manage Fixed Assets Using Fixed Asset Manager in QuickBooks Desktop