troubleshooting Question

Quickbooks: Leasing equipment to customers

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David SpigelmanFlag for United States of America asked on
Business ManagementQuickBooks
2 Comments1 Solution180 ViewsLast Modified:
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.
ASKER CERTIFIED SOLUTION
David Spigelman
President / CEO

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