@ShiellaGraceA
@Anonymous
Please learn from this input.
@AADPMGMT2016
What you are describing is Advanced Costs, the same as a law Firm would do or a Property Flipping business.
What QB provides is Activity reporting, not rely in the Financial reports, to see what you are asking. This is all very easy to do, but takes a bit of Setup.
Examples:
Start with the Management File. Rent is a Service Item linked to Liability.
Advanced Costs can be Other Charge Type items linked to Other Current Asset. If you want lots of details, set them up and name them, such as Plumbing Repair and Painting labor. Or, just one Repair and just one Maintenance. That's up to you. They all link to that one OCA account.
Your Property are Customer names and Job name = Tenant. If this is multiple owners, you can even use Owner as Customer, Property address as Job, Unit # as Subjob, and Tenant as SubSubJob. QB allows 5 levels.
Now you can track Rent to the tenant, prior security deposit and current security deposit and even moving in security deposit and Job dates for Start and End and notice they are moving = Projected End dates.
Security Deposit is also a Liability, by the way. So, I pay you rent and security deposit = you list these two charge items on the Sales Receipt for my name as Tenant. Now you have two liability amounts.
The payments to Plumber, etc, you list the Advanced Costs item and job track = allocate per line which Customer/Job/tenant this is, per amount. It is billable. And now you realize this allows you to track and charge only the Unit, such as Carpet Cleaning in between occupancies. Or, the Property = a Building roof. All these name levels are yours to use on the tracking.
The owner is Charged using Invoice and the Add Time & Costs are seen. That means you do it by the same name level. You can show Tenant repairs to the Tenant as their responsibility; you can show the owner the Roof costs or the Unit replaced stove and carpet cleaning. These are Not Your P&L data; they are Advanced Costs. Charging them as Billable, that invoice clears the Value from Advanced Costs.
If you charge a management fee, that is a Service Item linked to Income; and you use that for the Owner.
You also need to list the Owner as a vendor name, to Pay them their Rent. Like this:
Rent Item on the Items tab of that check = list the Gross you owe them. If you are not paying them the full amount, the holdback can be here as negative Fee = your income. If you put that on Sales transactions already, invoices for getting repaid + your fee, then you want to use a Clearing Bank, like this:
Gross rent to the owner $10,000
Negative to Clearing Bank $850 <== what their Customer name(s) owe you
= Net banking to them for Rent
Now you use the Clearing Bank, and you use Receive Payment for each of their Name(s) where you have open charges. This is "deposited" to Clearing Bank. The bank ends at 0. This is a Barter process. Instead of you giving them Gross rent, and them paying their bills to you, you traded Values.
Let's go to the Owner's recordkeeping. The level of detail here is easy as Class Tracking per property.
You got that Net Rent check. There is the billing detail that explains the Holdback.
You will enter Gross Rent as Income. You will enter that you incurred Costs. You have Net to banking. For how to enter costs, you can use a Bank type of account for clearing, as well, like this:
Clearing Bank gets Gross Rent, list on the Deposit screen per Class= property, all are income. Or, use Customers and Sales Receipts, with a Rent Income service item, if you want to track and manage tenants in Both places, and Class track as well, of course.
Now you use Banking menu > Write Check from Clearing Bank. List the Manager as Payee. List all Expense details here, such as Repair Expense and Plumber and Management Fee Expense.
The Clearing Bank has your Net as the actual Funds you got. It's time to show that Deposit, Banking menu, to Real Checking, and no name here, and From = Clearing Bank. This is Settlement of the net, left from the Clearing bank which has the Details.
The Owner QB file has P&L by Class.
Those are some basics.
As I noted; it takes a bit of setup, and then, you can even Memorize and automate some of this, because you know some is routine.
