I use agents to manage properties. The agents deduct from the rent it receives its commission + VAT and then sends me the net balance. How do I record this in quickbooks?

Hello Thomas

You can record this by receiving payment to an undeposited funds account and then deducting off the commission and adding the remaining balance to the bank account.this will then match in the banking to the money received but also mean the invoice is closed as paid.

Go to the customer invoice

1. On the invoice, click the Receive Payment button.
2. Mark the correct invoice to pay.
3. In the Deposit to field, choose Undeposited Funds(if this account is not available you may need to create it.It is located in the current assets).
4. Click Save and close.

Once done, enter a Bank Deposit to account for  the commission

Click the QuickBooks Plus (+) icon.

1. Select Bank Deposit.
2. Mark the invoice payment you received previously from the Select the payments included in this deposit section.
3. Expand the Add funds to this deposit section to add a new line item.
4. In the Received From column payee
5. In the Account column, add an expense account for the commission
6. In the Amount field, enter a negative fee amount.
7. Make sure the deposit matches the net bank deposit amount and that the date is correct.
8. Click Save and close.

Any questions let us know

Emma

Hello,

It would be best to create the invoices so you are able to receive payment directly to the undeposited funds account. In regards to the transactions that the tenants pay you directly, I'm assuming this does not involve an agent deducting any commission? If so, the VAT can be applied against the transaction in the bank feed by selecting the relevant VAT code in the VAT column after selecting the transaction. You can certainly be taken through this via our helpline if you would like, you can contact them through 0808 234 5337.

Thanks,

Talia