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I have a furniture/prop rental business. Need step by step for recording inventory (likely asset), renting inventory item (also tracking inv. on hand), and re-input inv.

Forum|Forum|7 years ago
December 11, 2018
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The issue is the following. When I receive inventory through the COGS process, it is recognized as inventory for sale. I am not selling the furniture or props, I am only renting them. When I create the invoice, it is linked to the inventory item and when "sold", removes the item from inventory....... Ideally I would need to know a way to register inventory as an asset, track the inventory when it is rented (to know what I have on hand), re-receive the furniture back into the asset account when the item is returned, and always ensure that the balance sheet stays updated with the value of each item. Help please :)

QuickBooks Desktop

Best answer by qbteachmt

None of this is Inventory Items at all.

You want to set up and use Noninventory Items for the Rental, linked to income.

The Purchases are flowing to Fixed Asset or Other Asset by the purchase, so that can be a Two Sided Noninventory item, used on the purchase transactions.

qbteachmtAnswer

None of this is Inventory Items at all.

You want to set up and use Noninventory Items for the Rental, linked to income.

The Purchases are flowing to Fixed Asset or Other Asset by the purchase, so that can be a Two Sided Noninventory item, used on the purchase transactions.

J

joekmangum

qbteachmt is correct here in that this is not considered "inventory." Ideally you would set up the rental cost/fees as either non-inventory or service items as you're technically charging for the service of providing and allowing the use of the rental item with the agreement that they will return it to you.

In order to "track" when the item is available and not available is the difficult part and something that QuickBooks has a hard time dealing with. There are workarounds directly in QuickBooks itself but the process is very convoluted and requires a bunch of double data entry. Instead you may want to consider an add-on software/plugin to QuickBooks that uses the service/non-inventory items on your invoices to track when those items are scheduled to be out of stock (or "rented") and when they will become available again. One such product is https://adelielogistics.com. You can check it out and hopefully it helps accomplish what you're trying to do with QuickBooks.