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Frequent Contributor *
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Utility Payment

Hi,

How do I record a utility payment received from our tenant?  He pays part of the monthly utility bill each month.  

 

Thank you!

Best answer 01-07-2019 12:12 PM

Accepted Solutions
QuickBooks Team

Re: Utility Payment

It's good to have you here, @calicoellie.

 

Let me share some information on how you can record your utility payments.

 

If initially you're the one who paid the entire bill, this will be recorded an company's full expense. To record that half of the utility expense is for your tenant and that they pay for it, you can  create and send an invoice to your tenants. Once you received a payment for the invoice, it will be recorded as an Income. However, this will be recorded under "Utility-Income account" which you'll create in the Chart of Accounts specifically to record the utility payments you've received. 

 

When you run your PL report, the income will offset the total amount you've paid for your utility expenses. By doing so, you'll only include your portion of the expense on your report. At the same time, you're able to keep track of the payments you've received.

 

To make reconciliation of banking records easier, follow these steps:

 

1. Manually sort rent checks by property.

2. Enter and deposit the rent checks in QuickBooks by property. That is, do a separate deposit transaction in QuickBooks to deposit all the checks from one property. Then go on to do the same for each additional property.

3. Make your actual bank deposits by property. That is, make out a separate deposit slip for each property's checks.

 

For additional insights, you may check out this article: Create a property management company.

 

Feel free to click the Reply button if you have follow-up questions about recording your utility payments. I’m always here to help.

3 Comments
QuickBooks Team

Re: Utility Payment

It's good to have you here, @calicoellie.

 

Let me share some information on how you can record your utility payments.

 

If initially you're the one who paid the entire bill, this will be recorded an company's full expense. To record that half of the utility expense is for your tenant and that they pay for it, you can  create and send an invoice to your tenants. Once you received a payment for the invoice, it will be recorded as an Income. However, this will be recorded under "Utility-Income account" which you'll create in the Chart of Accounts specifically to record the utility payments you've received. 

 

When you run your PL report, the income will offset the total amount you've paid for your utility expenses. By doing so, you'll only include your portion of the expense on your report. At the same time, you're able to keep track of the payments you've received.

 

To make reconciliation of banking records easier, follow these steps:

 

1. Manually sort rent checks by property.

2. Enter and deposit the rent checks in QuickBooks by property. That is, do a separate deposit transaction in QuickBooks to deposit all the checks from one property. Then go on to do the same for each additional property.

3. Make your actual bank deposits by property. That is, make out a separate deposit slip for each property's checks.

 

For additional insights, you may check out this article: Create a property management company.

 

Feel free to click the Reply button if you have follow-up questions about recording your utility payments. I’m always here to help.

Frequent Contributor *

Re: Utility Payment

Thank you so much, it worked!  Have a great evening!

QuickBooks Team

Re: Utility Payment

That's music to my ears, @calicoellie.

 

I appreciate you for sharing this great news! 

 

Always feel free to visit the Community page if there are any features you'd like to learn more about, our Community articles can come in handy. I'm always here to lend a hand.