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Posted by scfundogs on September 14, 2006, 5:01 pm
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> Sounds like you're trying to keep 2 sets of records in one QB data file:
> yours and his. From your standpoint, the rent collected is NOT income,
> it's a liability (you owe it to the owner) - we use Collected Rents
> Payable with sub accounts for each owner & property. When payment to the
> property owner is made, the check is split with the full amount of the
> rent coming out of the CRP account, and a negative amount (indicating a
> credit) representing the fee posted to Management Fee Income.
>
> On the property owners books, they would only record the receipt of the
> check in a deposit by posting the full rent amount to Rental Income and a
> negative amount (indicating a debit) representing the fee posted to
> Management Fee Expense.
>
> Not sure if you can combine these two into one data file or not, but I
> suspect it would get kinda messy.
>
> Scott out.
I do books for a property management company and it took alot of back &
forth, thinking & rethinking to make it work in QB because QB just isn't
designed for it.
Our procedure requires the use of a separate Excel spreadsheet. Properties
are setup as customers with tenants as jobs. Property owners are setup as
vendors.
Rents collected post to income and all property costs, including payments to
owners, posted as COGS.
A check is written once per month to the owner for the amount due, taken
from the Excel spreadsheet detailing rent paid less property expenses less
management fee.
Its not perfect, its not the only way to do it, it can be argued that the
monies collected aren't income but liabilities but it boils down to the
accountant's preferences and the way the business operates. In my example
the COGS are always going to be almost as much as the income so the
difference is the management fee.
--
Tara
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