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cthomas22119
Level 1

Quickbook and Party Rental entries

Hello,

 

I am helping a friend setup QuickBooks for his new Party Rental Company but am having trouble with figuring inventory.  We do need to enter the items purchased for cost of doing business (i.e:  tents, chairs, tables, etc).  These are items that he can depreciate over the next 5 years.  However, when entering the customer invoice, we have items to enter that temporarily come out of inventory, then go back into inventory.  Need some guidance as to "items" to bill.  Are they inventory or non-inventory?  If non-inventory, then I have no need for the ins/outs for each client.  Then we could adjust inventory on a monthly/quarterly basis to account for damaged items, etc.  But, if I do them as inventory, then I would have to account somehow of the out to customer, in after use. 

 

I have googled all weekend with no luck.  There has to be other party rental companies out there that use QuickBooks and have dealt with the same questions.

 

Any and all assistance would be greatly appreciated.

 

Thank you

 

Carol

3 Comments
katherinejoyceO
QuickBooks Team

Quickbook and Party Rental entries

Hello @cthomas22119

 

I appreciate you for sharing the complete detail of your concern. I'm here to guide you on how to account the inventory of your friend's party rental services. 

 

As an overview, rental material is managed as Service items, or Non-inventory Items because it links to the Rental Income account.

 

You can track non-inventory items using the transactions as it doesn't stock quantity or value.  While the price you enter on an item is automatically posted to the account selected on the non-inventory item screen.

 

Yes, you can adjust inventory on a monthly or quarterly basis to record the damaged items. Here's how: 

 

Edit an inventory quantity adjustment for QuickBooks Online

 

  1. Go to the Search icon (magnifying glass) on the upper right.
  2. Choose Advanced Search.
  3. Select Inventory Quantity Adjustment from the All Transactions drop-down list.
  4. Select the appropriate filters from the different drop-down list, then click Search.
  5. Choose the adjustment you want to change.
  6. Change the Adjustment date and the Inventory adjustment account if needed.
  7. To add inventory items, enter the details in the New adjustments section.
  8. To make changes to the previous adjustment, edit the details in the Previous adjustments section.
  9. Entering a note why you edited the adjustment in the Memo field is optional. You can leave it blank. 
  10. Click Save and close.

 

If you're using QuickBooks Desktop, you can follow the steps in this article: Adjust your inventory quantity or value in QuickBooks Desktop

 

For future reference, you can also read through our help article: How do I record rental income net of expenses. It will guide you with the proper way of accounting your party rental income. 

 

Let me know how it goes, @cthomas22119. We're always around to help. 

cthomas22119
Level 1

Quickbook and Party Rental entries

Thank you Katherine for such a quick response.  I had entered the Customer Sales Invoice items as Inventory but will change them to be "service" items vs inventory (or even non-inventory).

 

Then I will add inventory for the actual items based on cost (price at time of purchase) so that they can be tracked for capital depreciation over the next 5 years.

 

I will keep you posted if I have additional questions.

 

Thank you again - very much appreciated!!

 

Carol

katherinejoyceO
QuickBooks Team

Quickbook and Party Rental entries

You're welcome, Carol

 

By the way, if you need answers to your product-related concerns, you can also visit and browse topics in the QuickBooks Help

 

Feel free to visit us here in the Community. You can always count on us at any time of the day. Cheers!

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