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