Fixed asset or non-current asset, also known as Property, Plant, & Equipment, is an asset and/or property which cannot be converted directly into cash. Examples of fixed assets are computer, building, furniture, car, etc.
When you purchase a fixed asset, you have to create a record or list of fixed asset, whether in Excel or other software program. You have option to create your fixed asset item list in QuickBooks, too.
It is important to keep in mind that QuickBooks does not link any of the fixed asset item data to any of financial data in the company file. In other words, the Fixed Asset Item List does not add or perform any calculation to your financial data, similar to having it outside QuickBooks (Excel or other program).
QuickBooks adds your fixed asset at your purchase transaction, when you choose the fixed asset account from your chart of accounts. By the same token, you have to calculate fixed asset depreciation at year end and create journal entry to adjust your fixed asset value.
Sometimes you find yourselves having more than one account for the same purpose, either you created inadvertently or you decided that one account is better than the other. Instead of deleting transactions from one account and creating the same transactions to another account, you can then merge the accounts into one.
Merging accounts can be done with the following conditions:
• Both accounts are of the same type, i.e. you can merge an expense account with another expense account, and income account with another income account, an asset account with another asset account, etc.
• Both accounts are of the same level, i.e. you can’t merge a subaccount with a parent account.
When you merge accounts, QuickBooks brings in all transactions from the account that you want to merge (account that you want to eliminate) to the account that you keep. Make sure this is what you intend to do when you are merging accounts.
If your business collects sales tax from your customers, you have to register as a tax registrant to CRA. Once you have your tax number, you can also claim the input tax credits, which are sales tax from the goods you purchase.
Once you have your sales tax codes preference, codes, items, and agency as discussed in Managing Sales Tax, you then have to file your tax and pay (or claim), depending whether your collected tax is greater or less than the input tax.
Here is how to pay your tax:
1. Click the Manage Sales Tax icon from the Home Page or select Sales Tax > Manage Sales Tax from the Main menu to open Manage Sales Tax window:
When we discussed item & item types, one of the item types is Discount. A discount is basically an amount or percentage of deduction from your sales price. Most businesses give discounts to customers, such as holiday discounts, volume discounts, loyalty discounts, wholesale discounts, etc.
In QuickBooks, you can create as many discount items as you wish and then apply them to your invoices.
Let’s first create a discount item:
From the Main Menu > Lists > Item List, press Ctrl + N or Account button > New to open the New Item window:
What happens if your customers want to buy products that are low in inventory? QuickBooks Premier & Entreprise provide Sales Orders form to keep track of your customer orders and back orders. From these sales orders, you can then create invoice (for the available products) or purchase order (for the products you need to back order).
First of all, make sure that you enable the sales orders preference in Edit > Preferences > Sales & Customers by checking the Enable Sales Orders box.
Let’s now create sales orders:
1. From the Home Page > Customers pane > click Sales orders or from the Main Menu > Customers > Create Sales Orders to open Sales Orders window: