and now we will learn how to manage leases in QuickBooks if you have any questions about this
topic you can leave them in the comment section below and I'll do my best to help you and of
course if you feel the video helped you I hope you will click like and don't forget
to subscribe to get updates on new videos that come out all the time what happens in QuickBooks
during a lease well you first enter the main lease information into the lease document that was the
estimate that we set up in the previous video you can add any details from the contract that
you need to always remember in the memo field or the description field of the estimate any of the
long-term information about the lease should be kept in the notes section of the customer center
in the tenants records you can attach a photo copy of the actual lease from the paperclip icon
in the ribbon of the lease window so if you have the whole contract scanned in you can attach it
to the lease that you're making in QuickBooks now once your lease document is all setup all you have
to do is open the lease each month to record a monthly invoice against the lease that's it
there's no other setup information and there's nothing else to do but act normally each month
and then QuickBooks will give you those reports about your lease for example let's imagine on
June 1 we made a lease with Ellen for 24 months same rent 2,000 per month that's all you need
to put into QuickBooks everything else will be on the actual lease document that you can scan
in and attach or you can type in the details into any of the fields in the estimate or the
Customer Center from the main menu we click customers create estimate and we have to make
sure that the estimate that we choose is lease this way we know it's a lease we can close this
panel we're familiar with QuickBooks documents we were going forward in time so I believe the date
of the lease was June 1 of 2020 and the tenant that we had the lease with is Ellen now watch
how we do it we choose the rent item the same one that's connected to rental income however because
the instructions specifically say 24 months that means that we have to put the number 24 here and
the rate is Ellen's monthly rent mm so this is a $48,000 lease it's a $48,000 estimate because it's
2,000 a month for 24 months that's all you have to do if there were important details that you
had to remind yourself of every month you should put it here in the customer message or here on the
memo or even type it into one of the lines of the description field even if you don't have another
item to put because you're going to reopen this estimate every single month click Save and close
now the estimate is not a transaction and it will not show up on any reports that have an effect on
your balances but the lease will show up in two places that you could use to reopen the lease to
be able to enter the monthly invoices first one of the reports that we set up in the previous video
was percent progress on leases that estimate is there even though it's 0% and you can double click
and then click create invoice and whatever invoice you create from this window will be
matched against this lease the other place you can look is here in the tenants records if you click
the tenants records and then click in the left panel on the particular tenant you will not see
the lease if you're showing transactions even if you're showing all transactions you have to click
the all transact leave the show pull down actually and actually click estimates and then the estimate
will show up and then you can double click and then once the estimate is in front of you you
can click create invoice now if the lease happened on June 20 then the first invoice we create will
be dated June 30 so we don't want to create it for the entire estimate or even a percent we want to
create it for selected items selected items is what you have to choose because we're doing the
monthly rent one of 24 months we click OK and we get this window specify invoice amounts for
items on estimate so we want to show quantity and rate by clicking here we could even show percent
but it wouldn't help us but we might as well show it because it gives us more information
but the quantity here will stretch the quanta of the column quantity is 0 now what we're going to
do every time we put in an invoice against this lease we're going to change the quantity by one
by one and push the tab key and now we can see each month is only for point one seven percent
of the entire lease we click OK and we notice one month came on to the lease for the invoice came on
to the invoice and this monthly invoice is two thousand and again the proper date in this case
is June 30 of 2020 so that we know we're going forward in time one month at a time now don't
forget to choose the correct receivables account I think it's rent receivable I think Ella's a little
behind if you don't remember you have to check your rent report but let's just put it in rent
for now we don't want to get sidetracked just click Save & close and now when we open up the
lease reports we can see percent progress on lease is four point one seven percent and we
can also see the money amounts of the lease here's the total of the lease and here's the total that
has been billed and earned from that particular lease and these numbers progress invoice and
percent progress will increase progress invoice will increase two thousand a month and percent
progress will increase by four point one seven a month until we get to a hundred percent and
forty eight thousand dollars if you want to see how many months have gone by in the lease just
double click and go back to the estimate and even if you're not creating an invoice yet for
the next month you can still click create invoice create invoice for selected items then click OK
because this window will show you what has been done prior or the prior quantity so we only have
one prior month so far let's imagine we're going to make the July 31st invoice for the next month
against this lease we would click create invoice from the very same lease window then we would
click down here again and click OK now prior is one but the current quantity in July is one one
more months worth of staying during the lease which brings the total up to eight point three
three percent of the lease finished when we click OK we say that eight point three three percent of
the lease is finished as of the day we're billing now in this case it's the end of the next month
July 31st now when we click Save and close and we look at the percent progress on the lease we
now see it's immediately updated the total of the lease was forty-eight thousand but the total that
has been billed is four thousand because that's the amount that was actual earned and now we have
8.33% progress on the lease one more time for August 31st double-click click create invoice
make sure it's selected items now look prior says two prior months totaling 8.33% this is one more
month because it's one more invoice against this lease click OK and now we're up to 12.5 percent
complete but that's at the end of August so that at the end of the third of 24 months with 12.5%
complete and the prior amount is four thousand after we save this invoice the prior amount is
going to go up to six thousand click Save and close and now again we've invoiced six thousand
because that's what we've earned against the $48,000 lease and this is the percent progress you