How Do I Record Products I Bought To Be Rented?

CenusHinds

Hi Community,

I've bought some equipment to be rented out but I'm curious as to the accurate way to record this within Wave. When I upload the receipt, wave automatically suggest (correctly I suppose?) that this goes into (debit) an expense account and comes out of (credit) an asset account.

That's all well and fine, but I believe this should also be recorded as an asset? Should I then create a journal entry crediting the expense account and debiting a fixed assets account?

I'm slowly getting a hang of the accounting practices so forgive me if my question is noob-material. Any help (even if in depth) would be appreciated as I simply want to understand better for current and future reference.

Looking forward to your response.

Ryan_W

Hey @CenusHinds,

You should be able to select an asset account when uploading these receipts, rather than marking it as an expense; however, if you can't select an asset account, the journal entry you've described is correct!