Due To/From Journal Entries

You do not need any journal entries other than year end balance of class allocation. (A single monthly insurance premium need not be split 100 ways when you pay it)

I assume you record rents into management as income or as liability to your sub units?

If income, you use 1099Rent to show the payments to the units.

Use invoices to bill the subs, use billable expenses to assign the costs by unit(customer) and class. Receive customer payments for monthly invoice, deposit to a clearing account, now deposit to the clearing account from each sub unit Due To liability in the management company.

You must, as I understand it, keep each LLC in a separate company file or there is no point in having more than one LLC unless you have additional investors/members. 

The Ray Lucia mantra of each property in its own LLC is overblown in my mind. There may be a practical limit solely based on umbrella insurance limits but we only keep separate LLCs when there is a difference in ownership

Due to my perceived need you have of at least 11 company files I highly suggest for cost savings alone you stick with desktop not online. In addition any CRM program like PropertyWare syncs only to desktop.

I was hoping I could get a response on my original post.  Any thoughts.  Is the 3 journal entries the best way to accomplish what I am looking to accomplish in the post?

"I was hoping I could get a response on my original post."

Well, you asked this Twice and you have all sorts of peer user volunteers and the Intuit people trying to help in Both places, now. Here is your Original:

https://quickbooks.intuit.com/community/Other-questions/Due-To-From-for-property-management/m-p/2228...

Nothing about what you asked is done using JE. Banking is done using Banking functions. The Tracking by Name is never JE; those are already customer or vendor names. You have Payees and you have people going to repay. The accounting is done for one entity in one file; it seems you own some of the properties your Management Entity manages, but that is Separate, not combined. And a Management Entity doesn't really incur much as Expense; these are Advanced Costs to be repaid either by the owners or by a holdback of the amount from Rent Gross Liability. That is covered in your answers in your original topic.

I recommend the Real Estate and Property Management Books for using QB by Gita Faust.

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@AADPMGMT2016 wrote:

 

• -$50 Due To MGMT LLC from HOLDING LLC #1
• $50 Due From HOLDING LLC #1

 

 

If you are the only owner of all these LLCs, then there is no point in tracking the Due To/From between them, I would think, as you can't owe yourself money. There is no balance sheet required on the tax return for a single member non-corporate LLC

Yes, I am the only owner all all but 2 LLC's which I have a partner.  I would like to have a clean set of books for each of my holdings LLC's for several reasons.  

1) I have a partner on a couple fo them

2) I would like to have a PL and BS to show the banks for a particular LLC.  Ex. Main st bank financed the 10 properties with Holdings LLC 4.  Would would like to present the PL and BS just for that LLC.

3) MGMT does not have the same member as the holding LLC's

So if I present a BS on behalf of Holdings 4 LLC to a particular bank, I would need to know how much money that LLC owes MGMT LLC (or vice versa) to get an accurate set of books. 

@Malcolm Ziman

Is correct for those entities you own personally; there is no Lending between you and yourself and them. That would be Equity activity, not Liability and Asset activity.

You would have one data file per FEIN. You have different requirements depending on what is between which of your entities. Your own Management Entity never has expense or income for other entities' properties. You would have only a revenue stream as management fees. A Property Manager that incurs costs such as Plumbing repairs for property belonging to other entities, even if that also is your own entity, does not have Expense. That was an Advanced Cost as other current asset, to be part of the settlement between the Management firm that also collected Rent not as income but as Liability.

All of this is too complex for the text-based QB peer user internet forum.It's time to get personal one-on-one support and work with your own CPA for these intertwined relationships.

Banks know how to read financial statements. They don't need to see artificial Lending across your own entities.

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@AADPMGMT2016 wrote:

Yes, I am the only owner all all but 2 LLC's which I have a partner.

 

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So I would think that for the partnerships that's a different EIN, and a different tax return, and therefore a different data file. Check with a a lawyer or CPA

Thank you for your feedback Malcolm.  I appreciate your help with this matter.   Our Holding LLC's all have the same parent company (Single member LLC), but our MGMT company has a different member for asset protection reasons (It doesn't own any assets).  This structure was set up by our attorney.  So really our MGMT company should be looked at as a stand alone property management company separate from the other LLC's.  I believe Gita mentioned we would need a separate file per LLC based on our structure