Utilizing QuickBooks Desktop Fixed Asset Manager

The fixed asset manager in QuickBooks can assist in managing the fixed assets. A function in QuickBooks Desktop called “Fixed Asset Manager” calculates the depreciation of fixed assets using IRS-published criteria. To effectively manage asset information, depreciation methodologies, and fixed asset manager preconfigured reports are utilized. It is important to remember that FAM is only accessible in QuickBooks desktop versions Pro, Premier, and Enterprise.

In accounting, property that is typically not able to be sold directly to end users and cannot be readily turned into cash is referred to as fixed assets. Through an automated mechanism embedded into the fixed assets management, users may effectively maintain a careful track of assets and their depreciation. The fixed asset manager in QuickBooks may be used by the user when it has been set up. Using the Internal Revenue Service’s established criteria, aids in determining the decrease in the value of fixed assets. Read the entire article to learn more about using QuickBooks’ fixed asset manager setup to manage and use fixed assets.

Utilization of Fixed Asset Manager in QuickBooks Desktop

Start keeping track of your fixed assets now. Discover how to complete many important activities in Fixed Asset Manager (FAM).

1. Create an account for several assets

There may be some General Ledger accounts (G/L accounts) left over after importing assets into FAM or converting asset data between versions of QuickBooks Desktop. These must be assigned manually in FAM.

• Launch the Fixed Asset Manager software.
• Make a note of every asset that has to be linked to a particular account under the Schedule tab.
• To assign G/L accounts to assets, right-click on the assets you have chosen.
• After choosing the account, click OK.

2. Modify or add a depreciation setting or method.

For FAM to accurately compute the current and historical depreciation on a fixed asset, you might need to add or modify the Depreciation Method.

• Get Fixed Asset Manager open.
• Then choose Client Information from the File menu.
• Choose which depreciation technique is appropriate for the depreciation base under the Methods tab.
• Click OK to save the modifications.

3. Depreciate an old asset

It’s possible that your company had some fixed assets before deciding to adopt FAM. To accurately depreciate your fixed assets, follow these procedures.

With QuickBooks Desktop

• Fixed Asset Item List is the option, which you need to choose from the List menu.
• Choose Item, followed by New.
• After entering the required data, click OK to end the New Item window.

With Fixed Asset Manager

The previous depreciation will be grayed out if the Date placed in the service field is filled with a current date. Before proceeding, it is essential to ascertain the amount of depreciation recorded in prior years. If you are unsure of this information, get advice from an accountant.

• When the Asset Synchronization Log box appears, choose OK.
• Double-click the produced object in the Schedule tab.
• Scroll down to the Prior Depreciation row on the Federal column, then pick the amount that appears.
• In the AMT, ACE, Book, State, and Other columns, make the necessary adjustments.
• Click “Save.”

4. QuickBooks Fixed Asset Items Export to ProSeries Form 4562

Only data from the same ProSeries year may be exported using QuickBooks Fixed Asset Manager. This is because ProSeries and Fixed Asset Manager are based on tax years, but QuickBooks Desktop is based on calendar years. This indicates that FAM 2016 is included with QuickBooks Desktop 2017 and can be exported to ProSeries 2016.

Make a file in ProSeries using the same form that appears in QuickBooks Desktop.

In QuickBooks Desktop

• Create one or more FAM assets
  • Now, from the Lists menu, select the Fixed Asset Item List.
  • Choose Item and then New.
  • After entering the details for the fixed asset or assets, click OK.
• The next step is to import QuickBooks FAM data into the Fixed Asset modules.
  • To manage fixed assets, choose Manage from the Accountant menu.
  • QBD Enterprise: Manage Fixed Assets > Company
  • After choosing Create a New Fixed Asset Manager client, you have to click OK twice.
  • Enter the date, then select next.
  • Select the Applicable Basis, then Next.
  • Select the Default Depreciation Method for Each Basis, then Next.
  • Select a method of how you want the fixed asset items brought in the Fixed Assets Module from QuickBooks Desktop, then Next.
  • Now, choose the kind of assets you want to add to QuickBooks’ Fixed Asset Item List, and then click next.
  • Select Finish, then OK in the Asset Synchronization Log window.

In Fixed Asset Manager

• From the File menu, select Export > ProSeries Tax > Export.
• The Export ProSeries Tax Client File list allows you to select the file.
• Click Export after selecting the client file.
• Choose OK. You ought to get the message. Successful export completion has been achieved.

In ProSeries:

• When you access the client file, the import should appear as Completed.
• The asset list of ProSeries Form 4562 Depreciation and Amortization Schedule and Asset Entry Worksheets has to include every asset from QuickBooks Desktop.

5. Use Excel to import fixed assets into the Fixed Asset Manager

• As long as the third-party program can export data as a Comma Separated Value (.CSV) file, you can move data from it to FAM.
• Launch Fixed Asset Manager.
• After that, you need to select Import from the File menu.
• The Import Wizard will launch if you select Comma Separated (CSV).
• To finish the import process, you need to follow the instructions.

6. Choose the basis for publishing a journal entry

• You may modify whatever basis (Federal, Book, AMT, ACE, State, or Other) you are putting journal entries on in Fixed Asset Manager.
• Run Fixed Asset Manager.
• Choose Post Journal Entry to QuickBooks from the QuickBooks menu.
• Choose the preferred posting basis from the Basis to post the drop-down menu at the bottom of the window.
• As usual, post the journal entry.

Conclusion

Now, we hope that the information given above will be useful in utilizing QuickBooks’ fixed asset manager to manage or utilize fixed assets. If you have any questions, or QuickBooks fixed assets manager issues though, please contact us. Our specialists and experts in QuickBooks enterprise technical support will make sure you receive prompt technical help.

Frequently Asked Questions

Q1. How does Fixed Asset Manager allow me to make reports?

Ans. To generate reports:
Choose the Reports tab when FAM is open.
The report type you need, such as a disposal summary, asset listing, or depreciation summary, should then be selected.
You can select filters, date ranges, and asset categories to customize the report.
For further examination, you may export it to Excel or QuickBooks, print it, or preview it.
These reports are useful for asset management, tax filings, and financial reporting.

Q2. In Fixed Asset Manager, how can I retire or sell an asset?

Ans. An asset must be retired or disposed of once it has been sold or is no longer in use:
In FAM, pick the asset.
On the Disposal button, click.
Enter the date of disposal and, if appropriate, the sale’s revenues.
Note any profits or losses from the sale of the assets; FAM will do the calculation for you.
This guarantees that your records and depreciation schedules are updated appropriately.

Q3. How are asset impairments handled by Fixed Asset Managers?

Ans. FAM enables you to modify an asset’s book value if it depreciates as a result of damage, market fluctuations, or obsolescence. To deal with disabilities:
In FAM, pick the asset.
Enter the impairment loss to manually change the asset’s book value.
Depreciation schedules will be updated by FAM using the new, lower value.
This guarantees that asset impairments are reported accurately.

Q4. Is it possible to monitor the locations and conditions of assets in Fixed Asset Manager?

Ans. You may track some information about the physical location and status of an asset with Fixed Asset Manager, even if its main focus is on financial data and depreciation. Although businesses may need to integrate with additional asset management software for detailed tracking (like movement or condition status), you can add notes and custom fields to asset entries.

Q5. In Fixed Asset Manager, which depreciation techniques are available?

Ans. Several depreciation techniques are supported by QuickBooks Desktop’s Fixed Asset Manager, including:
The cost of the item is dispersed equally over its useful life by straight-line depreciation.
Double Declining Balance: Increases expenditure in the initial years of an asset’s life, speeding up depreciation.
150% Declining Balance: This balance is comparable to a double declining balance, but it accelerates more slowly.
Depreciation is accelerated by sum-of-the-years’ digits, with earlier years showing greater depreciation.
Depending on the asset type and your tax or financial reporting requirements, select the best approach.

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