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bathbluesman
Level 1

My landlord has allowed us to defer paying rent for a period. How do I record this in QB? We normally pay quarterly.

 
Solved
Best answer September 25, 2020

Best Answers
Rustler
Level 15

My landlord has allowed us to defer paying rent for a period. How do I record this in QB? We normally pay quarterly.

@bathbluesman 

 

All that verbage from intuit and it amounts to ask your cpa

 

create a liability account called deferred rent and post the rental payment to that account with a journal entry

debit rent expense, credit the liability account

Later you pay down the debt using that liability account as the expense (reason ) for the payment

View solution in original post

7 Comments
AlcaeusF
Moderator

My landlord has allowed us to defer paying rent for a period. How do I record this in QB? We normally pay quarterly.

Hello there, @bathbluesman.

 

Welcome to the Community. Let me help handle deferred rent in QuickBooks Online.

 

You can use the Journal Entry feature to account for that specific quarter. I recommend you start by compiling the total cost of the least for the entire period.

 

Try dividing the amount by the total number of periods covered by the lease, including all free occupation months. In every month of the lease, I suggest charging the average monthly rate to expense, irrespective of the actual monthly payment made.

 

Once done, you can start entering them using the journal entry. Here's how:

 

  1. Click the + New option in the upper-left corner.
  2. Select Journal entry.
  3. Choose an account to debit and credit.
  4. Fill in the necessary information.
  5. Hit Save and close.

If you're unsure what account to debit and credit, it would be best to seek expert advice from an accountant to ensure your books are accurate and error-free.

 

Additionally, I recommend visiting the following article to learn about how to remove a journal entry in QuickBooks: Reverse or delete a journal entry.

 

Fill me in if you have additional questions about managing your credit cards in QBO. I'm always here to help. Take care always.

Rustler
Level 15

My landlord has allowed us to defer paying rent for a period. How do I record this in QB? We normally pay quarterly.

@bathbluesman 

 

All that verbage from intuit and it amounts to ask your cpa

 

create a liability account called deferred rent and post the rental payment to that account with a journal entry

debit rent expense, credit the liability account

Later you pay down the debt using that liability account as the expense (reason ) for the payment

View solution in original post

bathbluesman
Level 1

My landlord has allowed us to defer paying rent for a period. How do I record this in QB? We normally pay quarterly.

Thanks, I get it now. Nice and clear.

All the best

David

bathbluesman
Level 1

My landlord has allowed us to defer paying rent for a period. How do I record this in QB? We normally pay quarterly.

Thanks, that's nice and clear and quite simple.

All the best

David

colleencasacuma
Level 1

My landlord has allowed us to defer paying rent for a period. How do I record this in QB? We normally pay quarterly.

How would you handle it if you are the landlord?

123146041645504
Level 1

My landlord has allowed us to defer paying rent for a period. How do I record this in QB? We normally pay quarterly.

REALLY!?!?  

Create a JE , debit or credit then save.... 

You folks are NOT HELPFUL.  Come on Quickbooks get it together. 

You could try explaining what accounts to create and which to debit, which to credit and why. 

 

123146041645504
Level 1

My landlord has allowed us to defer paying rent for a period. How do I record this in QB? We normally pay quarterly.

Thank you!  Now that's a great answer. Thanks for your help Rustler.

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