Newbie here looking for help

KrisMcC

I buy equipment then rent it out for a minimum fee, which then after 6 months the customer now owns the equipment.

Question is how do I show this in wave

1) I am guessing equipment is bought and placed into ASSETS>INVENTORY

I create an invoice monthly where I charge them a fee

to explain better I bought a computer at £60, I rent it out for 6 months at £15 a month so £10 covers cost and £5 is profit, but how do I process this in wave ????

thanks for all and any advice

Kris

Barsin

Hey @KrisMcC

So I went into my test account and tried to recreate the scenario you addressed:

1) I created two accounts. One was an inventory asset account which you can call Computer Inventory Asset. The second was a cost of goods expense account which you can call Computer Rental Expense.
2) I then created a bill and set it for $60 (working in Canada here). I set the computer asset account on the bill's expense account category
3) You can create invoice payments and send them to your client. Here you'll want to set whatever your income account is.
4) Then you'll want to create journal entries (Transactions > More > Add journal transaction) where you'll want to debit the expense account, and credit asset account.

You can see on my balance sheet that the account is balanced by the end. This article gives you some good insight into it with some good visuals.

https://support.waveapps.com/hc/en-us/articles/208623546-Simple-inventory-entry-tracking-in-Wave

MerlinAccounts_UK

@KrisMcC said:
I buy equipment then rent it out for a minimum fee, which then after 6 months the customer now owns the equipment.

Question is how do I show this in wave

1) I am guessing equipment is bought and placed into ASSETS>INVENTORY

I create an invoice monthly where I charge them a fee

to explain better I bought a computer at £60, I rent it out for 6 months at £15 a month so £10 covers cost and £5 is profit, but how do I process this in wave ????

thanks for all and any advice

Kris

It looks to me, based on your outline, that though you are calling it rent what you are actually doing is selling goods on credit, something that you would need to obtain a consumer credit licence for. I think that the only way you can support your contention that you are renting these items out is to have a purchase option at the end of the rental term with a purchase premium attached to that. Of course your paperwork needs to be spot on for this so you will need to look at the legals side of this too.