Long Term Rentals: Monthly Rental Billings

Tips and Notes | Rent Out Equipment | Rental Returns

Pro

Use this procedure to send your rental customers monthly billing statements using your QuickBooks financial software. This example is for piano rentals by the month; adjust for your needs.

When you run financial exchange with QuickBooks after renting a piano, the customer (if new) is added to QuickBooks, enabling you to use account charges for future monthly billings. Typically, you would do monthly billings on a set day of the month for all rental customers.

To send out monthly rental billings:

1. Set an account limit for the customer. We suggest this be equal to at least two months additional rental charges.

2. In Point of Sale, display your sales order list filtered for pianos currently rented out (as explained here).

3. Select a rental sales order and then select S ell I tems from the I Want To menu.

4. Enter a Doc Qty of one for the "Piano Rental Charge" item and select OK. This charges the customer for one additional months rent.

As necessary, increment the order quantity on the sales order for the rental charge item, so that some months always remain due. This prevents the sales order from being automatically closed if you "sell" all of the initial months entered.

5. On the sales receipt, take payment by account charge and save.

6. Repeat for all your open rental sales orders.

7. Conduct a financial exchange with QuickBooks.

8. The new monthly rental charges are posted to each customers account in your financial software.

9. Generate customer billing statements from QuickBooks and send to your customers. (Refer to your QuickBooks documentation for directions.)

10. When payment is received from a customer, take payment on account.

11. On the next financial exchange with QuickBooks, the customers account balance will be adjusted to reflect the payment and the new balance will be sent back to Point of Sale.

Notes:

- You can also create and mail Customer Invoices from Point of Sale if you prefer, using the write letters capability. Create your own invoice template using Word and inserting the customer account fields you need.

Related Topics

Run Financial Exchange with QuickBooks

Maintain customer charge accounts

Sell sales order items

Long-term rental overview