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Setup and use Fixed Asset Manager in QuickBooks Desktop

Fixed Asset Manager (FAM) is a program that is only available with QuickBooks Desktop Premier Accountant, QuickBooks Desktop Enterprise Solutions and QuickBooks Desktop Enterprise Solutions Accountant. It is an application that computes depreciation of fixed assets based on the standard published by IRS.

This article covers the recommended set up of Fixed Asset Manager along with other information that will aid you to maximize the use of this application.

  • Basic Terminology
  • Depreciation Methods
  • Fixed Asset Manager Predefined Reports
  • Using Fixed Asset Manager in Multi User Mode or Over the Network
  • Set up Fixed Asset Manager
  • Set up the Income Tax Form
  • Set up G/L (General Ledger)Account in QuickBooks
  • Opening FAM for the First Time (Fixed Asset manager Client Wizard)
  • Add Asset in Fixed Asset Manager
  • Asset Synchronization
  • Dispose Assets
  • Prepare for Next Year

 

Intuit articles have limited information about depreciation methods. For detailed discussion, visit the IRS publication 946.

Detailed instructions

This section provides general information about FAM including terminologies, reports and methods.

 

 

Terminologies

 

  • Capitalization Limit
    Dollar limit for fixed asset purchases to qualify for being reported as an asset instead of an expense (depending on size of company could range – as an example – from $200 to $20,000 per item purchased)
  • Depreciation
    Decline in price of an asset, attributable to deterioration, obsolescence, and impending retirement. Depreciation applies particularly to physical assets like equipment and structures. This loss in value needs to be tracked for tax purposes.
  • Disposal of Asset
    Refers to removing an asset from the company either by theft, selling it or throwing it away.
  • Fixed Asset
    Tangible items (i.e. machinery, furniture, computers and equipment) owned by a company that have a useful life greater than one year and whose value is greater than that company’s capitalization limit (varies by company).

 

Set up Fixed Asset Manager

QuickBooks and Fixed Asset manager (FAM) have different data files. It is best to set up your QuickBooks Desktop Company File properly to make sure that QB FAM calculates and function correctly.

Dispose Asset and Prepare for Next Year

There are times when a business needs to track the disposal of an asset. Typically, it is due to sales or loss of the property. To dispose the asset, you have to record the disposal both in QuickBooks Desktop and FAM based on what happened to the asset.

Other Resources

 

Fixed Asset Manager (FAM) Support Articles

 

KB ID# HOW12839
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