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Quickbooks: Leasing equipment to customers

This is not a technology question - it's more of a bookkeeping question. I'm using Quickbooks Pro 2018. I have a set of products that I'm essentially leasing to my customers. In other words, they're not buying the products. They won't own them - I will. There's an up-front "setup" fee, and then they pay for monthly service on the unit for the term of the "lease". At the end of the term, they will probably wind up getting a new, updated device, with a new setup fee, and then continue paying the same monthly rate as they had been, for an updated service.

So... how do I set this up? It's not exactly a sale, but how do I set up for the setup fee? How do I put that on the invoice? And how do I set up the lease? The purchase, I guess, is my own, so I need to pay Use Tax on it. But how do I account for any of that - it's not like it's "office supplies". Or is it? Do I just set up an expense for "Leased Out Equipment"? Or is it an Asset, and if so, do I make an Asset account for every single device? I'm so out of my league here.
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BRONZE EXPERT

Commented:
Depending on where you live, the lease (monthly fee) itself may require tax to be applied

To be honest this isn't really the best place for this sort of question. You should consult your accountant, or local tax professional

Just my opinion

Ken
President / CEO
Commented:
I'm not asking it from a tax perspective. I'm asking it from a how-to-set-it-up perspective. That said, I think I've got it figured out now. I'm going to set up the setup fees as a sales item (non-taxed, since we don't have taxes on services here, and since the customer isn't actually buying the product.) Then I'm going to charge the recurring lease as service revenue. I was just concerned that there was something more complicated than that. But after speaking with two bookkeeper-friends, I think that's the simplest way to do it. So I'm closing the question. But thanks for the response.