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cleco
Level 2

Airbnb

I have five vacation properties that I own, which I rent through Airbnb.  Thus far, I create an invoice for each renter when they book.  Then when I get the payout from Airbnb, I apply the gross payment.  Then when I make the deposit to the bank, I net out the Airbnb fee.   This has been fine  until a cancellation/refund occured.  Airbnb, deducted the amount of the refund for one renter, from the total payout which contained a different renter.   I think I now need to change my process to having Airbnb set up as a bank account.  Could someone give me a clear picture of what this flow would look like with regard to a property owner.  In particular would Airbnb be the Customer and Vendor as well?

Solved
Best answer March 26, 2019

Best Answers
Anonymous
Not applicable

Airbnb

Hi there, @cleco.

 

Thanks for getting back and providing details about the refund and payout of your customers. Allow me to chime in and help you further.

 

You don't need to create a journal entry basing on the scenario provided. You can create normal transactions instead and use a clearing account so we can move money from one account to another. 

 

First, let's create a clearing account on your Chart of Accounts:

 

  1. From the Lists menu, select Chart of Accounts.
  2. Right-click anywhere in the Chart of Accounts, then select New.
  3. In the Add New Account window, select the Bank radio button.
  4. Select Continue.
  5. In the Account Name field, enter Clearing Account, Barter Account or Wash Account.
  6. Do NOT enter an opening balance.
  7. Click Save & Close.

 

Once you already have a clearing account, you can create a sales receipt for Customer B's payout. Make sure to select the clearing account on the Deposit To field. Please see attached screenshot below.

 

 

Next, create a refund check for Customer A and use the funds from the clearing account. 

 

refund.PNG

Once done, transfer the remaining funds from the clearing account to your bank. Just go to Banking menu and select Transfer Funds.

 

 

This should get you on the right track. 

 

Let me know if you have additional questions about this process. I'm here to help. Have a good one.

View solution in original post

9 Comments
Paulg1969
Level 3

Airbnb

I think the easiest method would be for you to create a credit note to your renter?

cleco
Level 2

Airbnb

I could...but the amount refunded needs to be somehow deducted from the deposit from Airbnb, which contains a totally different renter.

RaymondJayO
Moderator

Airbnb

Hello there, @cleco

 

Allow me to share some information about the correct workflow with regards to your property owner. 

 

If Airbnb charges you for a property you rent, you can set it up as your vendor. If you're not tracking by actual customer name, then Airbnb is your customer. It's because how you sell your vacation properties through rentals. 

 

Airbnb is also a bank because it acts as your financial institution. Then, it holds your funds in and manages your funds out.

 

Yes, the easiest method to record the refund from one of your 5 renters is to create a credit memo for a customer. If he was set up as a vendor, here's a great article you can refer to: Vendor Refund

 

Since creating a memo contains a totally different renter, you'll need to create a journal entry. This way, the amount will be deducted from the Airbnb's deposit is from the correct renter. I'd suggest consulting your accountant to help determine the correct accounts and ensure your books are accurate. 

 

I'll be here if you have follow-up concerns about this of should you need anything else, @cleco. Have a great day!

cleco
Level 2

Airbnb

So, just to clarify.  I would create a credit memo for the customer who is on the deposit that is affected by the refund.  Then I would create a journal entry transfering the credit / refund to the original customer that needed the credit/refund?  Example:

 

Customer A - is due a refund of $50. 

Airbnb says that they are going to apply that to the next payout.

Customer B - is the next payout.

Customer B - payout should be $100 dollars, but it is now $50 because of the refund to Customer A.

 

Credit memo to Customer B.  Journal Entry transfering refund from Customer B to Customer A?

 

 

Anonymous
Not applicable

Airbnb

Hi there, @cleco.

 

Thanks for getting back and providing details about the refund and payout of your customers. Allow me to chime in and help you further.

 

You don't need to create a journal entry basing on the scenario provided. You can create normal transactions instead and use a clearing account so we can move money from one account to another. 

 

First, let's create a clearing account on your Chart of Accounts:

 

  1. From the Lists menu, select Chart of Accounts.
  2. Right-click anywhere in the Chart of Accounts, then select New.
  3. In the Add New Account window, select the Bank radio button.
  4. Select Continue.
  5. In the Account Name field, enter Clearing Account, Barter Account or Wash Account.
  6. Do NOT enter an opening balance.
  7. Click Save & Close.

 

Once you already have a clearing account, you can create a sales receipt for Customer B's payout. Make sure to select the clearing account on the Deposit To field. Please see attached screenshot below.

 

 

Next, create a refund check for Customer A and use the funds from the clearing account. 

 

refund.PNG

Once done, transfer the remaining funds from the clearing account to your bank. Just go to Banking menu and select Transfer Funds.

 

 

This should get you on the right track. 

 

Let me know if you have additional questions about this process. I'm here to help. Have a good one.

View solution in original post

cleco
Level 2

Airbnb

That absolutely worked!  Thank you!

MorganB
Content Leader

Airbnb

Glad to hear my colleague @Anonymous was able to help you out, cleco! We've always got your back here in the Community if you ever need any assistance in the future. Have a great day.

ArthurDavis
Level 2

Airbnb

I think this is the easiest method to follow. One should go for it.

IamJasonWeber
Level 3

Airbnb

Hi @cleco , I've been a host for several years and wanted to share how we do things, which you may find helpful. Like you, we create an invoice for each reservation. However, we set the guest as the customer of the invoice and then set Airbnb as the parent customer. In the invoice, we break down the Accommodation Fare, Cleaning Fee and subtract the 3% Host Service Fee. In our chart of accounts, we added "Airbnb Payment Clearing Account" of type Bank (Checking). We pay the invoice from the Airbnb Payment Clearing Account and then when we receive the actual money from Airbnb, we transfer it back to the Airbnb Payment Clearing Account, which then balances to zero.

 

When a reservation is cancelled or shortened, yes, Airbnb subtracts the amount from the next payout. When this happens, we create a refund receipt for the subtracted amount of the respective reservation - the guest is set as the customer of the refund receipt and Airbnb is set as the parent customer (just like in our invoices). The same Airbnb Payment Clearing Account is used to fund the refund receipt. So with this subtracted refund refund receipt combined with our other invoices, when the next payout from Airbnb is deposited, these amounts again get transferred to the Airbnb Payment Clearing Account and it perfectly balances to zero again. 

 

I hope this helps! Feel free to reach out directly if you have any further questions!

 

Respectfully,

Jason

BNBTALLY: https://www.bnbtally.com/airbnb/quickbooks/integration

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