QB Issue Resolution:

The below information is provided so you can better understand the concept behind what the customer is asking for. Please do not forward this internal information in part or in whole to the customer.

Amortization means the paying off of debt in regular installments or the deduction of capital expense over a specific period of time.

When customers ask for an amortization schedule they are looking for a table detailing each periodic payment on a loan (typically a mortgage), as generated by an amortization calculator. While a portion of every payment is applied towards both the interest and the principal balance of the loan, the exact amount applied to principal each time varies (with the remainder going to interest). An amortization schedule reveals the specific dollar amount put towards interest, as well as the specific put towards the Principal balance, with each payment. Initially, a large portion of each payment is devoted to interest. As the loan matures, larger portions go towards paying down the principal.

Customer may also ask for a way to amortize their intangible assets. This type of amortization is a method of measuring the consumption of the value of intangible assets that have definitive lives, such leaseholds, leasehold improvements, franchises, and licenses.

At this time, we do not have a feature that automatically does amortization. QuickBooks Desktop does have this feature so customers coming from that product might expect this functionality. This is an accounting function, so even without a feature to do the calculations for them they can use checks and journal entries to record the amortization of their debts and assets.

Contributor: Valeri Davis
Technical Writer: Mark R. Phelps

To handle the amortization of intangible assets you can create a journal entry to deplete it. To record this transaction you would normally have an expense account setup to track amortization, along with a sub-account attached to your intangibles asset account for the tracking of the accumulated amortization. Again, you would want to consult your accountant or bookkeeper to make sure you are using the appropriate accounts.

Once you have these accounts set up:

Choose Plus Sign Icon > Journal Entry.
List the Date as the date you want to reflect the amortization.
On the first line, under Account, list your amortization expense account; list the amount under the Debit column.
On the second line, under Account, list your accumulated amortization sub-account; the system will automatically put the amount under the Credit column.
(Optional) If this asset is amortizable on a regular basis, and the amounts are going to always be the same, click Make Recurring. You can then schedule this transaction to be automatically entered so the amortization happens without manual data entry on your part.
Click Save.

To be sure you are accounting for your amortization correctly it is best to speak with your accountant or bookkeeper.

Currently QuickBooks Online (QBO) does not have a feature to automatically do amortization. Amortization of debts and assets will have to be done through manual transactions, such as checks and journal entries.

For example, the Amortization of debts can be done with a check.

Choose Plus Sign Icon > Check.
List the bank account that payment is made from.
If you plan to print this check from QBO, click to mark the option To be printed.
For Pay to the Order of, select the entity you owe the debt to.
If this is a hand-written check, enter in Check # and appropriate Date.
Under Amount, list the full amount of the payment (principal + interest).
Normally you will list two accounts below the check, one line will list the loan payable account with the total of principal paid under Amount.
The second line would list the interest expense account and corresponding amount of interest paid.

Note: The amount on your check must equal the total of the lines listing principal and interest. For specific information on what accounts should be used, consult your accountant or bookkeeper.

Click Save and New or Save and Close

To handle the amortization of intangible assets you can create a journal entry to deplete it. To record this transaction you would normally have an expense account setup to track amortization, along with a sub-account attached to your intangibles asset account for the tracking of the accumulated amortization. Again, you would want to consult your accountant or bookkeeper to make sure you are using the appropriate accounts.

Once you have these accounts set up:

Choose Plus Sign Icon > Journal Entry.
List the Date as the date you want to reflect the amortization.
On the first line, under Account, list your amortization expense account; list the amount under the Debit column.
On the second line, under Account, list your accumulated amortization sub-account; the system will automatically put the amount under the Credit column.
(Optional) If this asset is amortizable on a regular basis, and the amounts are going to always be the same, click Make Recurring. You can then schedule this transaction to be automatically entered so the amortization happens without manual data entry on your part.
Click Save.

To be sure you are accounting for your amortization correctly it is best to speak with your accountant or bookkeeper.

Details
Answer ID 6339
Products QuickBooks Online Simple Start (H)
QuickBooks Online Essentials (H)
QuickBooks Online Plus (H)
Categories Using This Product
Date Created 05/02/2014 02:33 PM
Date Updated 03/16/2015 09:42 AM
Allow Crawling? Yes

Resolution for Issue 'Does QuickBooks Online have an amortization schedule?' available: Yes (Solved).
Source: Intuit Community forum.

Does QuickBooks Online have an amortization schedule?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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