Rustler’s Quickbooks Tips

So let’s say that you sell bobcats (the machine not the animal) and have them in inventory. And the business is thriving and you are going to expand so you want to take one bobcat out of inventory and make it a fixed asset because you are going to start using it to clear some land.

Now you would think that QB would have thought this one through, but …

Logically you should be able to use inventory adjust, and move the item to the fixed asset account, and you can. The problem is that it does not make an entry in the fixed asset list, the value of the item just sits in the fixed asset account.

Since you really need to have it in the fixed asset list that poses a problem.

The only way I can figure to do it is to use the inventory adjust and as the adjusting account select “cash”, lower the quantity on hand by one. That takes the cost out of Inventory asset, lowers the number on hand, and increases cash by the cost of the bobcat.

Then go to “Enter bills and expenses” and on the expense tab under account select the fixed asset account. QB will ask you if you want to set up a fixed asset, do that and pay the bill with cash. In the memo block of all transactions I would say something about this being an internal transaction and why.

And don’t forget to include this transaction in your calculations for use tax.