 QuickBooks Desktop 2023, rental income set up items. Let's do it within 2-its QuickBooks Desktop 2023. Support Accounting Instruction by clicking the link below giving you a free month membership to all of the content on our website broken out by category further broken out by course. Each course then organized in a logical reasonable fashion making it much more easy to find what you need than can be done on a YouTube page. We also include added resources such as Excel practice problems, PDF files and more like QuickBooks backup files when applicable. So once again click the link below for a free month membership to our website and all the content on it. Here we are in QuickBooks Desktop, get great guitars practice file we started up in a prior presentation going through the setup process we do every time maximizing the homepage to the gray area noting in the view drop down we got the hide icon bar open windows list checked off open windows open on the left hand side reports drop down company and financial the P&L the profit loss the income statement range in changing 010123 to 123123 let's customize it fonts and numbers changing it up to 14 okay yes okay let's open up the other big report reports company and financial that being the balance sheet the balance sure change in the rain 010123 to 123123 let's fonts and number it and bring it up to 14 okay and yes and okay that's the setup process that we do every time we're going to go back to the home page here thus far our primary source of revenue has been the sale of inventory in our case guitars we focused on inventory because you have that added complexity of tracking the inventory in a perpetual system however we want to look at some other items of sales as well we have looked at some service items and created sales receipts and invoices for them in a prior presentation we focused in on a job cost system where we might for example have partnerships and then have a staff similar to a bookkeeping company or CPA firm or a law firm that would then have to enter their time into the system and then the partners for example billing out that time in our case we imagined we had guitar instructors entering their time that we would bill out the time now we want to think about a rental kind of setup that you might have and it might look something like this we've got things that we're going to rent in our case we've got music equipment we've got the guitars we've got the drums and so on amplifiers and whatnot that we might be able to rent out the process might look something like someone calls in asking for us to hold on to equipment to rent it out to them as they do we might enter an estimate into the system to see what it is we need to hold on to and make sure that we have on hand so that we can then rent it out to them we might use that estimate to then collect a down payment meaning we get paid before we do the rental to kind of lock them into renting it out otherwise we want to make sure that we have the equipment to rent it to someone else we want them to lock in the rental and then when we actually rent it out to them we might then create an invoice which would then facilitate the sale so that's going to be the general thought process that will go through with this kind of revenue stream this revenue process now what we would what would we need to do in order to set this up we would need to say well what kind of items are we going to be renting if i'm going to create an estimate and an invoice what am i going to be charging i'm going to have to set up rental items to charge for so i'm going to say all right let's go to the list dropdown let's go to the items now what kind of things might we rent we might rent each piece of equipment separately i might say each guitar has cost this much i might say each amp cost this much each drum set cost this much and that's one way that you can set it up and i could like set up each of those individual items and possibly take those individual items and then make a group out of them in other words just realize that you could set up multiple different items and then go to your items dropdown and new items and you could try setting up like a group of items here and within the group you can pull in you know multiple items and you might pull in like two guitars and an amplifier and whatnot and then you'll build them out as like one kind of group amount so just note that you have that option but i'm not going to do it that way here what i'm going to do instead is say that i'm going to close this out that we're going to enter one item which is a standard group price so we're going to say yeah that you can get two standard guitars a drum set and an amplifier and some some microphones or whatever is going to be the standard set and we'll sell that for one price instead of saying i'm going to sell i'm going to rent out one guitar at a time or anything like that we're going to say hey this is the standard set if you don't need all that stuff it's still the same price and if you need if you need more than that maybe you can add on we'll have some add on items so that's going to be our thought process here so i'm going to set up an item for like a set that they might need for you know a weekend so we're going to say add a new item and so i'm just going to say it's a service item and i'm going to call it band let's call it band set number one and so i'm going to just say this is the standard band set for number one you've got a pick maybe of some standard guitars and if you want to up up the level level up the guitars then it would be an add on you got a standard amp you got a standard drum set and so on i'm going to say it's 2000 i have no idea what the price would be for something like this i'm going to say 2000 and i'm going to say it's non-taxable because it's not an inventory item and i could put it into service item again and that might be appropriate because remember every time we set up these items on the income statement we want to think should i just put it into service items and then break out the the detail in the sub ledgers or the sub reports which can break out by what we actually sold i could do that which would break it out by this item here or maybe i'm saying well i think this is significant enough to have another line item for the things that we rent on the actual income statement that's what we'll do here let's do that here i'm going to say new item and i'm going to say this is going to be let's say it's equipment rental income hopefully i spelled that right i'm not sure i'm not even going to check it i'm going to say that's good and it's an income item so i wanted an income so i'm going to say save it and close it save it and close it and that looks good okay so now we can we can set up our equipment now let's say they want to level up let's say we have we have some people that might say hey i want to i want a better guitar or i want another guitar or let's say we have some standard like upgrades so that we're going to say that's going to cost an add-on of another uh $50 we'll say so i'm going to say another item new i'm going to call it a service item it's going to be rental add-on you know guitar or whatever so if you want a more advanced guitar expensive guitar maybe we we have that as the add-on or if you want another you know you know same level guitar maybe that's the add-on we're just kind of making this up but that's the idea so it's going to be non-taxable it's going to once again go to equipment rental so there we have it so that looks good so we'll save it and close it so now we've got our items set up so that when we when we set the estimate and we went into the invoice it should be as easy as possible let's say there's another amp to let's say there's an add-on amp i'm going to say item new and let's say they want two amps sometimes they want to be really loud they want to piss off the neighbors so let's say we have this is a we give them one amp but it's not that loud they want to level up the amp you got to pay more if you really want to piss people off rental add-on amp we'll say and so we'll level up that and so then this will be $40 non-taxable and we'll put this into equipment rental as well so now we've got the standard set you can add another amp to it you can upgrade the guitars if you want let's say okay so now we're set up so if i go back to the homepage again the process would be if someone calls up and requests that we hold on to a set of stuff we can go in here in the estimate and we can add those you know the band set in here and so on we could set up the estimate we can use that estimate to say hey look i want 10 percent of the estimate or something possibly as a down payment which will then say i'm going to say no remember the estimate as we'll see will not have any impact on the financial statement but then can be used to create the invoice and can be used to track in the customer center and then we'll enter a received payment before we invoice because we want them to give us a down payment to lock down the fact if i'm going to hold on to these amplifiers and these guitars and not sell or rent them to anyone else i want to make sure that you're committed that's what the down payment is for and then i will create an invoice and apply the make the invoice from the estimate most likely and then apply the credit to it when we rent out the equipment or possibly when we get it back or something like that that's going to be the general idea and obviously then the income statement will be impacted here and notice we created another sales line as opposed to just service items we'll have another sales line because that was what we set up with the items of equipment rental will be the general idea no change thus far to the income statement or balance sheet yet we just set up the items so that we can do this process going forward