23 Nov Ask the Expert – Equipment Rental Company
Ask the Expert – Equipment Rental Company
Q – Do you have experience or a workaround on a leasing company? This client rents linens, etc. for parties. She needs to know what she has on hand, what is currently rented out to a customer, and how to reflect the items being returned after the event is complete. Tech support said it could not be done in QB; however, I find it hard to believe that there is no equipment leasing companies using QuickBooks.
A – What I am going to propose is definitely a work around, but here is what has worked for another company. Set up the rental items as inventory items with a zero cost and an appropriate selling price. Then enter an inventory adjustment to set up the total quantity available for rent. As an invoice is created for the items, it will decrease inventory without a cost. When the items are returned, a credit memo is entered with a zero dollar amount to receive the rental items back into inventory as available for rent. The inventory reports will show who has rented and who has returned the specific item. The cost should be recorded directly to an asset account, and reduced directly when items are damaged, stolen, or for some other reason no longer able to be rented. The second step for removing the item from service would be to enter an inventory adjustment to decrease the quantity available and adjust the asset account as appropriate.