Renting contract collectable yearly

Hello, Anna.

We can run a progress invoice and create a yearly receive payment transaction which will be deducted from your 10-year rental contract. Let me lay down the steps in detail.

First, ensure that the Progress Invoicing is enabled in your Account and settings.

Once done, you can start the process of running the progress invoice, here's how:

1. Navigate to the +New tab and select Estimate under the Customer column.
2. Add Product and services (Yearly rental contract).
3. Enter the $6000 for an estimate.
4. Click Save.
5. Then click the Create invoice on the upper right side.
6. Choose the second option on How much do you want to invoice?
7. Input 10% which is equivalent to $600 for each line.
8. Then click Create invoice.
9. Finally, click Save.

Additionally, once the  transaction is recorded, you can start processing the payment manually.

You can also consider reaching out to our QuickBooks Live expert Assisted team, they are available to assist you with recording progress invoices and addressing any QBO concerns.

Lastly, you can run the open invoices report to monitor the status of these long-term transactions once everything is set up.

Please let us know if you have further questions about recording rental transactions in QBO. You can use the Reply button and we'll respond to you anytime.

@Annamaria1923 

The advice given by @ArielI doesn't work.  It will create BOTH an invoice for $6,000 and a yearly recurring invoice for $600.  That's obviously not correct.  Do QB employees go through training on this stuff? 

It's not proper accounting to recognize the whole contract amount in your financials.  Rent revenue is recognized on a straight-line basis over the lease term ($600/year  X 10 years).

Dear Rainflurry,

Thank you for your help.

I wonder if it wouldn't be better to register it as follows:

To register the whole renting agreement

                                                         Debit                                Credit

Pending deferred revenue                6,000

Deferred rental revenue                                                          6,000

To register yearly rental collection:

Deferred rental revenue                   6,000                              

Pending deferred revenue                                                      6,000 

Accounts receivable (invoice)             600

Rental income (invoice)                                                            600

Bank account                                     600

Accounts receivable                                                                 600

Best, 

Annamaria

@Annamaria1923 

EDIT: the same as creating a monthly annual invoice

Thank you so much for your help Rainflurry!

AM