cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 2

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!

Solved
Best answer January 07, 2019

Best Answers
Highlighted
QuickBooks Team

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.

View solution in original post

10 Comments
Highlighted
QuickBooks Team

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.

View solution in original post

Highlighted
Level 2

Utility Payment

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

Highlighted
QuickBooks Team

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.

 

Highlighted
Level 1

Utility Payment

Would I need to create a completely different invoice for the rent and for the utilities or can I bill both as line items on the tenant's monthly rent invoice? What account type, detail type would you use for both Utility categories?
Highlighted
Moderator

Utility Payment

Hello there, cedenb.

 

Allow me to step in and provide additional insight on recording rent and utility payments in QuickBooks Desktop.

 

Both of your options are acceptable. You can either create a different invoice for the rent and utilities, or bill both as line items on the tenant's monthly rent invoice. However, if  you wish to track these transactions per item, you may consider recording it on separate invoice.

 

With regards to choosing which account type, detail type and categories to use, I'd recommend consulting your accountant for further guidance in choosing the account specifications and make sure everything is recorded properly.

 

If you need other help, please reach out to me again. Have a great day ahead.

Highlighted
Level 1

Utility Payment

So glad I found this thread! I'm in the same situation.

Can you please provide me the steps to set up the "Utility-Income account" in my chart of accounts? I checked under "income", and I couldn't find anything similar. 

 

 

Highlighted
QuickBooks Team

Utility Payment

 

Welcome and thanks for following this thread, @NicoleObregon

 

If you're using QuickBooks Online, you can find the Utilities in the Detail Type under the Expense account. 

 

However, if you're using the Desktop version of QuickBooks, you can manually enter and add the Utility-Income account in the Chart of Accounts. Here's how: 

 

  1. Go to the List menu, then select Chart of Accounts
  2. Under the Account drop-down, click New.
  3. Choose the Account Type then Continue.
  4. Enter the name in the Account Name field and an optional account number.
  5. Click the Save & Close button when done. 

 

To make sure your books are accurate, you can reach out to your accountant to verify under which account type the Utility-Income account should fall. 

 

For your reference, you can also read through this help article: Understand the QuickBooks Chart of Accounts. It helps you learn about the different types of account and their functions.  

 

Feel free to message us again if you have more questions. We're always here to help. 


 

Highlighted
Level 1

Utility Payment

Hello Katherine,

Thank you!

 

Yes, I know where to find Expenses --> Utilities. But, how do I create an income account for "Utility - Income Account"? My tenants send me a payment of $50.00 per month, but I don't want to count it as income, because I use that money to pay their water bill.

 

I hope I'm explaining myself clearly. I've new to this!

Highlighted
Level 1

Utility Payment

Hello, I am very new to Quickbooks Desktop Pro 2020. I am trying to set up my vendor accounts and I need to start with February's bill which I have already paid. How do I enter that so that I can enter March's bill which is due soon? Do I create the vendor and then put it in as an expense since I have paid it already?

Highlighted
QuickBooks Team

Utility Payment

Good day, @kb1969.

 

Yes, you’ll need to create a vendor first to record the bill payment in QuickBooks.

To record the payment, you’ll need to create a bill first to track the expense or product.Here’s how:

  1. Go to the Vendors tab and select Enter Bills.
  2. Enter the Vendor’s name.
  3. Choose the expense account or the item.
  • Expense: if this is an expense recurred by the business such as, Utilities, Rent, and phone/cable service.
  • Items: If this bill is for any product, shipping and handling charge your company buys, sells, or resells.

       4. Enter the amount and click Save and Close.

 

Once done you can proceed to pay the bill for recording purposes.Here’s how:

  1. Go to the Vendors tab and select Pay Bills.
  2. Put a checkmark in the box corresponds to the bill you created and click Pay Selected Bills.
  3. Click Done.After this you can now enter your March’s bill.

 

You can then pull up a Vendor Payments report if you need to view your total payments. Please check this article for more information: Customize vendor reports.

 

Please leave a comment below for further questions. More power to your business! 

Need to get in touch?

Contact us