 QuickBooks Online 2022 Rental Income Set Up Service Items. Get ready because it's go time with QuickBooks Online 2022. Here we are in our Get Great Guitars practice file. We set up with a 30 day free trial, holding down control, scrolling up just a bit to get to the 125% currently in the home page, otherwise known as the Get Things Done page. In the business view, as compared to the accounting view, if you wanted to change to the accounting view, it's something you can do. By going to the cog up top and switching to the accounting view down below, we will be switching back and forth between the two views, either here or by jumping over to the sample company file currently in the accounting view. Back on over, we're going to open some tabs to put some reports in, right-click it on the tab up top to do so, duplicating it. Back to the tab to the left, right-clicking a Get and duplicating it. We're going to be opening up reports. Before we do, let's take a look at where those reports are located in the accounting view. It's in the reports on the left-hand side. If we go back to the business view, second tab, we're looking at the business overview this time, and then the reports on the left-hand side, closing the hamburger, opening up our favorite two reports, the balance sheet income statement starting with the big B.S. balance sheet. So we're going to go up top and do the ranging, changing 01012221232 and run it. And then let's go to the tab right, tab right, and business overview again, reports, closing up the hamburger, profit and loss, the P and L, doing the range change once again, 01012221232 and run it. So now we're going to imagine back to the balance sheet, holding down Control, scrolling up a bit, that we have our guitar shop, and we're thinking we're going to take some of our equipment and be able to rent it out for rental purposes, possibly for people that want to start, say, a band or have a band basically for a weekend or something like that. So we're going to set up our rental kind of items so that we can provide that service as well. So this is an area that will allow us to collect a security deposit because we're imagining that if they're going to have the rental items, we're going to want them to give us money upfront. So we'll have a prepayment kind of situation for them to basically rent the items or to reserve the items to be rented. And so we'll have that kind of system set up. And we also want to think about the items that we would set up with regards to a system like this. And that's always something that you want to kind of consider your underlying items in terms of how you're going to be setting them up. In other words, if I go back to the first tab, we're imagining that someone's going to come in and ask for basically equipment, guitar equipment, amps, drums, and so on that they can rent for some timeframe. That would mean that we might first make an estimate. We might say they call in, they want the equipment, you know, next week or something like that and we say, okay, let's make an estimate possibly and then possibly let's get a down payment upfront, receiving the payment before we do the work at that point in time based on the estimate and then possibly when they come in, we can charge them at that time, possibly then charging the invoice at that point in time. In order to do the estimate and the invoice, we're going to need to set up our items. That's going to make the process as easy as possible. When we're setting up our items, we're thinking service items that will be populated in the estimate and the invoice and then how do we want to do that? Do we want to set up a different service item, for example, for each guitar that we have, each drum set that we have, that they would be putting together, which might be a little bit more tedious to do or maybe we have some set set. We might say, hey, if you have a standard band set, which includes this range of stock items that you might have some ability to choose between, then that's going to be our basic band set and then if you wanted to add on or make changes within that basic set, possibly getting a larger amp to get louder or something like another guitar, then you can add on top of that. So that's kind of a common type of scenario that you might see. We got the baseline set. If you want to rent something, here's what it costs for the baseline set. You can't really go below that. You can have up to basically two guitars, a drum set and an amp and all that kind of equipment for it and that's the baseline. If you just want one guitar, we're still going to charge you the baseline amount. That might be the way you kind of set it up and then on top of that, if you wanted to add like another guitar or get a super powerful amp or upgrade some of the equipment, you might have set ranges that we can basically include over and above the baseline. So that's how you might want to, you might start to think through it. So if we were going to go through this, we're going to say, okay, well let's go to the get paid and pay area and we're going to go down to our products and services and if we were in the accounting view, we would be going into the sales area and into the products and services and so then I'm going to say, okay, so we're going to set up our products and services, close up the hamburger and then it's going to be a service item. We're going to set up, so let's set up the baseline service item. I'm going to say it's a new item, simply a service item that we will have and I'm going to say that this is going to be, let's just call it band set number one rental or something like that. Standard band set and then I'm going to go in the description. There it is and we might include in the description like whatever it is to guitars, guitars, one drum set and amplifier, amplifier. I think I'm not sure if I spelled that right but that's what I'm going with. We're going to say 2,000. I'm just making up the numbers for 2,000. Not sure what would be a reasonable price for a rental of a band set and then you might even, of course, put the days for a weekend for two days or whatever the range would be. We're going to say it's a non-taxable item so I'm just going to try to do that easily down here but it's just saying non-taxable and then save it. That means that's subject to sales tax that we're setting up and there it is. So let's say save and close that so we can use that to populate our invoice and estimate and actually let's make one more change to it as well on that rental income. Notice I set it up as a service item so if I went to the income statement holding control down, scrolling up a bit it would then put it into this service item here and you don't want to get carried away with the different types of items that you have on the income statement because we can break that out in the sub reports so we don't want to basically have another income account for example for every rental item that we have every piece of guitar for example or every kind of a guitar that we sell and we don't want to have a separate income line item for any for every of our customers either those are two tendencies that we tend towards often people tend towards to want to put all that detail on the income statement that's not really what you want to do but some of the larger categories the big groupings of categories we might break out and we could put them under a subcategory of the services so in other words in the service category I might break out like the guitar the guitar sales for example as opposed to other types of services we might provide that are general type of services we might want to break out in this case the rental service or the rental type of income in another service item so let's imagine that let's make another income account on it so I'm going to go back to the first tab and let's go back into our band set number one and edit it let's do some editing on it instead of just putting it into the service item I'm going to try to add an account in the business view which is is always a struggle they gave me the standard the standard setup so that's good okay so we're going to say it's an income type account and I'm going to say that it's another primary income and I'm going to call this this is going to be the equipment rental income I'll just call it equipment rental income we could make it a sub-category of the services if we wanted to and you know that could be a useful thing but I'm not going to I'm not going to do it we're going to say save and close it right there save it and close it there it is and so when we post something to it it'll go to the income statement and into that special special new revenue account alright let's do another one let's say well what if they want like more something outside the standard band set typical things we would expect say like adding a guitar or something like that they want three guitars so they can you know sound more with more guitars or maybe a backup guitar they're worried that the guitar is going to get broken or something a string will break so we're going to say well if they wanted to add add one guitar to rental or something like that on the description added guitar to the rental we're going to say that costs another $50 per guitar so if you want like two backups another $100 for the double backup in case strings break things happen or you just got four rock stars up there that have their own guitar and this is going to be for what did I call it where's my rental equipment rental there it is it's not going to be taxable for sales tax I'm just going to see if I can do that down here by saying it's not taxable and so there we have it let's save it and close it and let's add one more here let's say the other thing we would anticipate people would want is possibly a more powerful or another amplifier maybe because they want to make sure they're super loud so we're going to say this is going to be add amplifier to rental to rental let's just keep it at that maybe not the most most descriptive descriptors or the best descriptors but that's what we'll have it we'll say that's $40 again I'm not these prices of course I have no idea but you get the idea it's practice problem practice problem edit the sales tax that's a good price for rental of an amplifier and we're going to go down here and say non-taxable once again so there we have it so now we've got our items set up so in a future presentation we'll start to populate these items and we're going to start to think okay first thing we might do someone comes in with an estimate I won't record it right now but we can make the estimate based on these items we set up and what they want and we can schedule the time that they think they're going to that they want to rent it so that we can have the equipment ready and what not and then when they come in we can basically create the invoice and when we have the estimate we can collect the down payment to reserve the spot to reserve the rental spot for it and then we can do that with the receipt payment we'll look at the two methods for unearned revenue we won't look at the two methods but you can apply either of the two methods we'll apply method number one that we looked at for unearned revenue and then we can then apply the invoice or create the invoice when they come in and we actually do the work providing the rental, we'll see those in future presentations but let's take a look at the estimate just to see how these will populate and make sure they're populating properly so if I hit the drop down down here we've got the rental stuff so we got the add guitar descriptions so there we have it populating just like it should I'm going to close that out, I'm not going to save it and next time we'll continue on with the epic story of Get Great Guitars