 In this presentation, we're going to record income related to equipment rental. In order to do this, we're going to set up a new account on our income statement for a different type of income, that being the rental income. We're going to set up a new customer as we enter the invoice for the equipment rental and we'll set up a new item for that type of equipment rental and think about the different options on how we might want to set up inventory items for something such as the rental of equipment. Get ready because we're pushing forward with Sage 50, Cloud Accounting. Here we are in our Get Great Guitars company file. We're going to be up in the customers section. We're going to be adding now or taking a look at the reports. Let's go to the reports dropdown. Let's take a look at the financial statement reports. Within the financial statements, we want the income statement. So we'll take a look at that income statement. For the month of February, I'm going to remove the zero balances on ticking off these check boxes and then say, okay, there's going to be our income statement. Now, we want to think about another type of income source and that income source is going to be rental income. So we're going to say that we have a guitar shop. We have equipment. We're going to be renting that equipment out. So once again, when you're thinking about different types of income, then the question is, do you want a separate income account? You want to group it into just basically service income or do you want to break it out? So and you want to be sparing, you want to have different accounts sparingly on something like the income statement. So you want to think about whether you want to break it out or not. In other words, you typically don't want to break it out for every type of rental equipment that you might be having. For example, if you rent amplifiers and guitars and then drums, you may not want a separate income account for each type of item that you rent. You may be able to get that more detail with other types of reports, but you may want a separate account just for rental income in general. And just like you probably don't want a separate income account for customers saying that this is my main customers. I want a separate income account for them. You get probably to run other reports in order to get that more detailed information and then just run the general account up top. So here we're going to set another account for rental income. Next thing you want to think about when you set up rental income or something like rental income is do you want to have a set price for it? Do you want to set up an inventory item and then say I have a set price for the amount of rental income? For example, if you rent something like a band equipment and you know what they need is basically a drum set or an amplifier or whatnot. Do you set a set price saying, hey, this is my set package deal and this is my set price for it based on a nightly rate? That might be the best way to go oftentimes because then it's standard. Then you don't have to negotiate so much. It is what it is and if people want it, they want it. If they don't need all the equipment, they don't need all the equipment. But it's a set thing that you don't have to spend all your time agonizing over whether or not you should negotiate the price or possibly you set up a set price per piece of equipment. This is a set price for the drums. This is a set price for the amplifier and that way you can build the invoice very easily in that fashion. Otherwise, you could just basically say it's going to be an item for rental equipment and then you've got to think about every certain circumstance that's going to come up. So those are a few things you want to consider when doing something like a rental type of income or any type of income where you're considering whether or not you have to break things up like an hourly rate versus a set package deal. If it's bookkeeping, do you want an hourly rate or you just want to say, hey, look, I'm going to charge you this much for this many transactions, which might be easier to do, cause you less agony with negotiation, wasting time with negotiation over price and the invoicing and all that kind of thing. All right, so let's do this. We're going to then go down. We're going to make an invoice then or let's just make a receive payment. We're going to say it's a receive payment transaction. And within this one, I'm going to then say I'm just going to put a ticket for our practice problem. And I'm going to say the customer is going to be Anderson. We'll go to good old Anderson. But I'm going to go to the second tab. I'm not going to apply it to an invoice. I'm going to go to the second tab over here. And we're going to have a check. And I'm just populating these for the purposes of our practice problem. And then the item down here, we're going to be setting up a new item. So I'm going to set up a new item down here. This is going to be the item that we are selling. I'm going to say new. And then I'll make this large so we can see this. Now, again, this is where you want to think, do I want a package deal? Do I want to say, hey, this is my equipment for nightly band sets, band sets equipment, possibly that you have a nightly rate for or something like that. Or you might have a nightly rate or something for each piece of equipment in that format. So a couple of different options just to consider for the rental of equipment. So then I put bank here, band. So I'm imagining a band set is going to be like an amplifier, a drum set, possibly. And so a set group of things. And I'm going to say this is going to be $500, let's say, a night. And then I'm going to set up a new account that this is going to be going into. And then the new account will have, it's got to be the account number. It's going to be like 4060, let's see, 4060, new account. So we're going to set up a new account, 4060. So I'm going to make this the ID 4060 description. I'm going to say equipment rental. And then it's going to be an income type of account. So I'm going to say this is going to be an income type of account. So there we have that. I'm going to save it. So there looks good. I'm going to close this, then save and close. This then checking off this account needs to be the equipment rental account. It's going to go to this new account. That's all we need because it's a service item. So that looks good. I'm going to save this. Going to close this. And then let's say that it's going to be for five nights. And this is going to be the band set is the item. So that's going to be a total of 2,500. Let's say it's for 10 nights, 10 nights, which will be 5,000. Now what's going to happen when we record this? It's going to go into the cash on hand, the holding account. The other side is going to be going to a new income account, income account, but it's a new income account. Let's check it out. So I'm going to say save. And then we'll close this one. And we'll go to our financial statements then. We'll open up the old financial statements. Back to the income statement. I'll refresh it up top. So we'll refresh it. And now we have the equipment rental. So we have another type of income source. If I double click on the equipment rental, there is our information double clicking on that. Then, of course, is our data input document. So closing this back out, closing this back out. So just note that on the revenue side, you typically have fewer accounts, of course, than the expense side of things. And you want to think about how you're going to group those revenue items and then what kind of service items you want to help you out with making the billing process as easy as possible and for you to be able to communicate what it is you do and what rates you want to charge to potential customers to make it easy on them. You want things to be able to trigger easy without, basically, endless negotiations or agonizing over how many hours something took or the invoicing process or any uncertainty in the billing process. We like to remove that as much as possible. So then if we go then to the reports and go back into our reports, which I think is open already, it's not. So if I go back into our financial statement reports, we go into the balance sheet. Then of course, and we're looking at the period of February and we go into February period. Then we have the other side is going to be going to the cash on hand, which is that 5,000. So there's the 5,000 on the other side as well. So that is it. That's going to be it for now. Let's get out of here.