FAQ: What’s the process for managing fixed assets we’ve paid for but haven’t placed into service yet?
When you prepay for a fixed asset, but do not place it into service immediately, follow this process to ensure accurate accounting and fixed asset tracking:

     1. Use a Prepaid Account
         On the AP Invoice, use a prepaid expense account instead of a Fixed Asset account. This ensures no fixed asset is created prematurely.

     2. Create the Fixed Asset
          When the asset is actually placed into service, manually create the fixed asset record with the correct date. Follow the steps in Creating Fixed Asset to create the Fixed Asset.

     3. Record a Journal Entry
          Record a journal entry to move the amount from the prepaid account to the appropriate fixed asset account. 
 

See also

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