Skip to main content
N
NitinUpadhyaya
May 11, 2021
Question

How to Invoice the Customer for the Rental Services of my owned Tangible Assets in Quickbooks Online

  • May 11, 2021
  • 1 reply
  • 0 views

Hello All,

 

Ok so QBO doesn't have Fixed Asset List or Fixed Asset Manager so I am struggling to work around with getting paid and account for the services recently. Any help/leads will be much appreciated.

 

Scenario: We bought TWO Vans, paid in Full through Bank Transfer and now would Rent it out to our Customer on a Day Rate basis.

 

Accounting Dilemma:

 

1A. How and Where to create the VANS as Assets i.e Tangible? Others?

1B. Does the original price include VAT component?

 

2. Once the Asset is created how to "match"/record the payment for it that was made through the bank transfer and is showing in our feed against the Invoice.

 

3. [MOST IMPORTANT] Now when we have to create a Service/Product/Stock to Invoice the Customer, how do we show/use these corresponding Assets (VANs)

 

Any urgent help will be life saving.

 

Thanks

N

 

1 reply

J
jamespaul
May 12, 2021

Hello, N. 

 

I'm here to solve your dilemma in setting up your van rental services. I'll go over each of the questions and give details on how to handle the transactions. 

 

First, you'll want to set up an asset account. You have the option to use the Tangible assets Account Type since the Vehicles type is under it.

 

However, I do recommend consulting an accountant before doing this. They'll ensure the van is properly accounted for in your books. 

 

To create an asset account: 

 

  1. Go to the Chart of Accounts.
  2. Click the New button.
  3. Set the Account Type to Tangible assets and the Detail Type to Vehicles (or another type as per your accountant's instructions). 
  4. Set the name, then check the Track depreciation of this asset box to enter the "As of" value of the van.
  5. Once done, click Save and Close. 

 

If you'd like to depreciate this asset, you can check this article on how to do it: Depreciate assets in QuickBooks Online.

 

The VAT component is handled when you create the purchase. So, you would want to create a bill, cheque or an expense transaction for this:

 

  1. Go to the + New icon, then select either Bill, Cheque, or Expense (depending on how the van's purchase was made). 
  2. Add the van's supplier under Payee (if you haven't created it yet, select the Add new button).
  3. Under Category details, select the asset account you created then enter the amount.
  4. Set the correct VAT code under VAT. 
  5. Add other important details for the van purchase.
  6. Once done, click Save and close. 

 

When the van's purchase is accounted for, simply match the expense transaction with the downloaded bank record from the Bank Feeds.

 

Check this article for a guide: Categorise and match online bank transactions in QuickBooks Online.

 

Now, let's take care of the rental services. You don't use the asset account for this. Instead, you would want to use an income account.

 

Then, map it to your service that you'll be adding to your customer invoices. Here's a step-by-step process: 

 

  1. After creating the account, go to the gear icon.
  2. Select Products and services.
  3. Click the New button.
  4. Select Services.
  5. Enter the name as "Van rental" or something similar.
  6. Under the Sales price/rate box, enter the amount for the per day price. 
  7. For the Income, select the income account you just created. 
  8. Check the Inclusive of tax box, then select the VAT code. 
  9. Click Save and close. 

 

Now you're ready to create invoices for your customers. This article can help you with the process: Create invoices in QuickBooks Online. 

 

Need to run reports to see how much you've made from the rental service? We have guides to help you do this. Check them out from the Reports topic page. 

 

I'm still with you if you need help setting up your rental service business. If you have other things to take care of in QuickBooks, let me know by leaving a reply below. I'll assist in anyway I can. 

Terms & ConditionsAccessibility statement