Currently, QuickBooks Online doesn’t 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/cheque.

1. Select the Plus icon (+) at the top, then Check or Expense.
2. List the bank account that payment is made from at the top.
3. If this is a hand-written check, enter in Check # and appropriate Date.
4. Under Account, enter the name of the loan account.
5. Under Amount, enter the amount paid off the principal loan.
6. Enter the interest expense account in the second line and the interest amount under the Amount file. You will need to have an amortization schedule from the lender to separate the principal and interest amounts. You can attach the amortization schedule as supporting documentation to the Check or Expense QBO entry.
7. Note: The amount on your check must equal the total of the lines listing principal and interest.
8. Select 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.

Once you have these accounts set up:

1. Select the Plus icon (+) at the top, then Journal Entry.
2. List the Date as the date you want to reflect the amortization.
3. On the first line, under Account, list your amortization expense account; list the amount under the Debit column.
4. On the second line, under Account, list your accumulated amortization sub-account; the system will automatically put the amount under the Credit column.
5. (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.
6. Select Save.

If you need more help with any bookkeeping matters please contact John Mottram at 214-390-7446 or go to our website at www.stensonfs.com. Stenson Bookkeeping Simplified specializes in all bookkeeping, payroll, receivables, payables, cash management and project receipts and expenses reporting faced by real estate, construction trade an e-commerce businesses on a day to day basis.