Show an Item as Asset and Expense

[TimothyW]

I want to be able to show an item as an asset (appearing on a balance sheet) and an expense (appearing on Income-Expense statement). For instance, we purchase new furniture and new vehicle (both assets), but I also need that same transaction to appear as an expense. I wasnt able to find any information on the forum concerning that. Any advice on how to do this would be much appreciated. Thank you!

[NeilZ]

I want to be able to show an item as an asset (appearing on a balance sheet) and an expense (appearing on Income-Expense statement). For instance, we purchase new furniture and new vehicle (both assets), but I also need that same transaction to appear as an expense. I wasnt able to find any information on the forum concerning that. Any advice on how to do this would be much appreciated. Thank you!

I learned a year or so ago, that when you purchase an asset, while it may be an outflow of cash, it is not an expense per se. The reason is that you're exchanging a monetary asset for a physical asset: for example an item costing $5,000

Debit Fixed Assets - $5,000.00
Credit Checking Account $5,000.00

Here's an example from another thread on the purchase of a vehicle, using a car loan:

1). Vehicle purchase - assume cost of vehicle $20,000.00. Assume paid for with a $5,000.00 down payment from the checking account and a $15,000.00 loan

Debit Fixed Assets - Vehicles $20,000.00
Credit Checking Account $5,000.00
Credit Vehicle Loan (Liability) $15,000.00

2). Loan payment - assume the payment is $300.00, of which $50.00 is interest and $250.00 is principal.

Debit Interest Expense - Vehicle Loan $50.00
Debit Vehicle Loan (Liability) $250.00
Credit Checking Account $300.00

Please note that the amounts to interest and principal will change each month.

[bookshelpplus]

Although the accounting of this is not technically correct, churches often want liabilities and asset amounts to post as expenses so that the amounts show under the budget expense category. If you have an accounting firm or finance team then be sure to get approval for this entry. After booking normally as an expense you can make a entry to debit asset and credit the fund balance (example: 01-3010-000). Accounting, Fund Accoumtng, Enter Transaction. Then Post.