Airbnb

cleco · ‎March 25, 2019

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?

Anonymous · ‎March 26, 2019

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:

From the Lists menu, select Chart of Accounts.
Right-click anywhere in the Chart of Accounts, then select New.
In the Add New Account window, select the Bank radio button.
Select Continue.
In the Account Name field, enter Clearing Account, Barter Account or Wash Account.
Do NOT enter an opening balance.
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.

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

Paulg1969 · ‎March 25, 2019

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

cleco · ‎March 25, 2019

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

RaymondJayO · ‎March 25, 2019

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 · ‎March 26, 2019

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 · ‎March 26, 2019

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:

From the Lists menu, select Chart of Accounts.
Right-click anywhere in the Chart of Accounts, then select New.
In the Add New Account window, select the Bank radio button.
Select Continue.
In the Account Name field, enter Clearing Account, Barter Account or Wash Account.
Do NOT enter an opening balance.
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.

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.

cleco · ‎March 27, 2019

That absolutely worked! Thank you!

MorganB · ‎March 27, 2019

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 · ‎May 21, 2019

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

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