Enter depreciation in QuickBooks

You must make a periodic entry to record the depreciation expense for each fixed asset. Entering the depreciation expense into QuickBooks is similar to entering any other expense. Here's how it compares to entering a non-depreciable expense:

Supplies
1. Spend some money on office supplies.
2. Record a decrease in the correct Checking account.
3. Assign the amount spent to the Supplies expense account.

Depreciation
1. "Spend" some of the useful life of a vehicle.
2. Record a decrease in the Accumulated Depreciation account associated with the asset.
3. Assign the amount spent to the Depreciation expense account.

Recording a purchase of supplies affects the Current Asset account "Checking" and the Expense account "Supplies." Recording depreciation affects the Fixed Asset account "Accumulated Depreciation" and the Expense account "Depreciation." It does not affect cash.

The depreciation calculator provides annual depreciation amounts. To record depreciation expenses monthly or quarterly, divide the annual amount by 12 months or 4 quarters, and assign the result to each period. You can use QuickBooks' memorized transaction feature to automatically enter depreciation at specified intervals.