Can goods that you purchase to offer to customers in a rental formula simply be entered as “purchases of trade goods”?
And how do you remove them from stock again when, for example, they have been damaged? Do you simply register them as “sales” when you charge the customer for the damage?
I would not record this as a trade good if it is for rental. Trade goods are purchased (in my opinion) to be sold back, so they leave your company. That does not seem to be the intention in your case (or at least not initially?).I would rather record them under a type of services, which seems more correct to me. If necessary, create a new category with the title "purchases for rental" or something similar. Then, when you do sell them, you can simply record them as sales, but without them being trade goods. You did not initially purchase these items to sell, so this seems correct to me.
I agree, I wouldn't book something you rent out as trade goods. It's the same with rental property (it's slightly different, but I know this from other accounts), where you don't book the property you rent out as trade goods.
Anyway, it's slightly different, but in a way it's also the same...
You really should try it out for yourself. Even if you don’t have a company number yet, you can already go ahead.
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