Write-offs from Asset accounts

I have been trying unsuccessfully to figure out how to categorize write-offs from asset accounts as expenses, such as depreciation. This is how I do it: $xxx Asset/Bank Account. At time of depreciation: $x Expense Category/Asset. As a result, this expense will not populate in any of the reports, however. Can this be changed?


Best Answer


  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    It is not clear what you mean by Asset/Bank account and Expnse Category/Asset.

    Is the account set up in Quicken as an Asset account?

    If so, you should be able to set up a Category called Depreciation or whatever and record a decrease in the account assigned to that Category. If you include the Category and  account in a report, the transaction should appear in the report.
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  • Thank you for responding, Jim. Sorry I wasn't clear in my description of the problem. I have set up a category in the expense group, and while I am able to record any depreciation, it does not get looped under the expense category. However, if I were to record a transaction as depreciation using a bank account or CC, it will show up in the income and expense report, monthly spending, etc. I hope this clarifies the issue, but if not, please let me know.
  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    "and while I am able to record any depreciation, it does not get looped under the expense category."
    It's not really clear what you're saying here, but if you are referring to some report that you routinely generate in Quicken, it sounds like that report hasn't been customized to include that asset Account as one of the Accounts "feeding" the report or hasn't been customized to include the depreciation Category.
    Customize the report and make sure the asset Account is ticked under the "Account" tab and the depreciation Category is ticked under the "Category" tab.
  • It's not the Asset account value I need under the I&E report, it's the depreciation that I need recorded there, because in effect, depreciation is considered to be an expense when it occurs.
  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    Jim and I have both told you how to get that expense to show up on a Quicken-generated report.  What version of Q are you using?  I believe "business" expenses also need to be linked to Schedule C for the expense to show up.
  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    Try including the account in the report.

    You will see that as for other accounts, the report just shows transactions from the account, not the account balance.
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  • Tom, both Assets and depreciation are set up properly. I know that for a fact because when I use the depreciation (expense) category with a regular cashflow account, the expense gets looped in together with the rest of the expenses. Here is an example: Let's assume you prepay a vendor $2000 for a series of their services not rendered to you yet. Each service runs at $100. Technically, those $2000 are still your bucks until the account has been depleted by the sum of all services rendered to you. You would enter the transaction as $2000 coming out of your bank account, and assign them to an Asset account. No expense at this point. Then, say, next month, you request your first service from this vendor. The correlating transaction would be to reduce your Asset account by $100 (new balance $1900), and record the $100 as an expense. This expense will now show up in your books, reports, budgets, if you have them, etc. Problem is: it does not do that for me. If I use the same expense category to record spending coming straight from a cashflow account, it works just fine.
  • Got it!! Thank you to both of you pointing me in the right direction. My expenses said they would include "all" accounts, but taking a closer look, those were really just the bank accounts. It works now!!! Thank you again!!!!!
  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    If you're referring to the report that comes up when you click on Reports > Banking > Cash Flow, then that report by default only includes "Banking" Accounts.  But by making sure the Account I set up to mimic your example - "Prepaids" - was included in that report, the expense shows up.

  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    Yes the standard reports are somewhat inconsistent in which accounts are included by default. Sometimes it makes sense and sometimes it doesn't. Among the Spending reports for example,

    Itemized Categories - All accounts
    Itemized Payees - All
    Itemized Tags - All
    Spending by Category - All
    Spending by Payee - All
    Current vs Avearge spending by Category - All
    Current vs Average spending by payee - All
    Income & Expense by Category - Banking only
    Income & Expense by Payee - Banking only
    Current Budget - Accounts selected in current budget only
    Historical Budget - Accounts selected in current budget only

    In all cases, accounts you have marked as "Separate" are not included in the reports unless you click on "show hidden accounts" in the account customization and include them.

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  • volvogirl
    volvogirl SuperUser ✭✭✭✭✭
    Your pre-paid asset account is not the same as doing depreciation.   And I think you can deduct the full amount you paid on your tax schedule C.  Not just the services rendered so far.
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