and now we will learn how landlords manage their items list 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 is an item well an item is a service
or product that one sells to a customer in this case our tenants an item is something that you
would list in the body of a sales receipt or an invoice when you make that sale each item
is connected to an income type of account in the chart of accounts every time an item is placed
on an invoice the income account for that item goes up for example Holden wants to list late
fees on a tenant's invoice separately so that the tenant can see how much she or he is being charged
specifically for late fees compared to the rest of the regular rent he also wants to track the income
from late fees separately so he can know the total he earned just from late fees he wants to be able
to compare that to how much he earned from the overall rent he must create an item on the items
list called late fees and when he creates this item he must connect it to the income account
in the chart of accounts called income from late fees so if you look at the diagram on the right is
the pretend invoice that we would imagine giving the customer the tenant to ask them to pay for the
rent now when we list the monthly rent $500 that means when we record this particular invoice this
account in the chart of accounts should go up by $500 because that's where it gets recorded however
if we add a lei fee for a dollar fifty that means that that dollar fifty should instead be recorded
in this account income from late fees this way he can get the separate totals of each account
and know how much he earned from rent compared to how much he earned from late fees so let's take a
look how to put it into QuickBooks so from where we are now we're going to click sales and go down
to products and services now of course this is the very first time that we're going to this window so
we're going to click add a product or service okay now we're just going to choose service because
rent and things like late fees are basically just services now the name of this service will be
rent excuse me rent due because that's how it will excuse me that's how it will appear on the invoice
when you give it every month now you don't have to put a category and you don't have to put a picture
or any of these other extra details in fact you can leave sales price or rate blank and fill in
the rent when you do tenant by tenant each time you make an invoice but the account that should
automatically increase when you earn rent and give an invoice acknowledging that you earn rent
that account is an income type of account up here and it is rental income earned so every time you
choose this item on an invoice to give to a tenant this is the account that will go up by the amount
you put on the invoice and of course we want to click Save and new and you'll see in a moment
that is on the list behind us and then of course the next one will be late fees and of course we
want to connect late fees to the account called income from late fees which is here so these are
the accounts and the chart of accounts that we put in the previous video and specific one that
increases when we charge a tenant a late fee or maybe just singular late fee because that's how
it will look when you put it on the invoice and of course we're going to click now save and close and
the full item list is behind us these are all the things that we could potentially put on an invoice
now let's just finish by making inactive the ones that we don't want to see ours and sales don't
relate to us so we'll make them inactive and I'll even make inactive the late fee item so that we
can activate it later when we get up to the video that teaches us about late fees so as a batch
action we can make them inactive and click yes now for some reason it won't let us make inactive the
two that QuickBooks gave but we can ignore and disregard them but if we want to see the ones
that have been made inactive we would click the filter funnel and change status from active to
either inactive or all and if we click all now we can see that late fee is still on the list
but it just says deleted we can just come here and click come to the right where it says make
active and click make active and now there it is back on the list and we can clear the filter and
see it's showing only the active ones and late fee is active so again click here edit arrow pull down
make inactive click yes and we will reactivate the late fee when we get to that video you