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Level 1

Entering Monthly HOA Fees

Were are a small condominium community.  Our only income is from monthly fees.  Do I enter these fees as "sales" (we don't have invoices or anything like that).  First, I assume that I do enter the fees as if they were sales, but I am not sure.  I realize that we could get an accountant, but we can't really afford one.  Is there someone out there using Quickbooks in this very simple way?

Solved
Best answer December 18, 2017

Best Answers
Highlighted
Level 15

Entering Monthly HOA Fees

HOA fees are your Income = Sales.

 

You use Invoices if you want to track that Everyone Owes, for instance, on March 31, June 30, Sept 30 and Dec 31, and that also allows you to set Terms and Due dates, to manage past due accounts.

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Highlighted
Level 15

Entering Monthly HOA Fees

You use Invoice as the sales transaction, when you are accrual basis, and/or when you want to track what people owe you for a date that is different than when they pay.

 

You use Sales Receipt if you don't need any tracking.

 

An HOA typically needs tracking; not everyone pays on time, some properties fall into Bank Owned or are in Escrow.

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10 Comments
Highlighted
Level 15

Entering Monthly HOA Fees

HOA fees are your Income = Sales.

 

You use Invoices if you want to track that Everyone Owes, for instance, on March 31, June 30, Sept 30 and Dec 31, and that also allows you to set Terms and Due dates, to manage past due accounts.

View solution in original post

Highlighted
Anonymous
Not applicable

Entering Monthly HOA Fees

You could use a Sales Transaction in lieu of the invoice.

Highlighted
Level 15

Entering Monthly HOA Fees

You use Invoice as the sales transaction, when you are accrual basis, and/or when you want to track what people owe you for a date that is different than when they pay.

 

You use Sales Receipt if you don't need any tracking.

 

An HOA typically needs tracking; not everyone pays on time, some properties fall into Bank Owned or are in Escrow.

View solution in original post

Highlighted
Level 1

Entering Monthly HOA Fees

Thanks!  That is the solution I was looking for.

Highlighted
Anonymous
Not applicable

Entering Monthly HOA Fees

This is exactly what I am looking for.    We just purchased QB for our small HOA.     We are on an accrual method.    We need to track our HOA payments easier.    Can you explain to me how exactly I set that up for using the invoicing system?      Sales = Members      The last manager used Quicken and tracked payments terribly.    I want to set it up for 2019 so that we are good to go for the year.      Plus, I have 4 months that I have prepaid for Jan,Feb,Mar, April in 2019.    How does that get set up?    

 

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Level 1

Entering Monthly HOA Fees

Hello, I have a similar question. I am the new Treasurer of our HOA, purchased QB Pro Desktop 2020. Our dues are paid Quarterly so I entered invoices for all owners for the four quarters. However I do have some owners that pay in full for the year. Should I just let their check populate all four invoices when I receive payments or should I create one invoice for the total amount?

It appears that in running reports that it only counts income for the invoices dues and does not report advances?

Highlighted
QuickBooks Team

Entering Monthly HOA Fees

Thanks for choosing QuickBooks as one of your partners in building business, DS52.

 

I can share some insights that will help you in handling the advance payments.

 

We can record those payments as retainers. The retainer or deposit is treated as a liability to show that although your business is holding the money from a deposit or retainer, it doesn't belong to you until it's used to pay for services. We can create the invoices for every quarter, then apply the retainer(advance payments) so that it will be recorded as an income.

 

Before recording the retainers, we'll have to set up a current liability account for them. Let me show you how:

  1. Select Lists from the top menu bar.
  2. Choose Chart of Accounts.
  3. Right-click and select New from the pop-up menu.
  4. Select Other Current Liability as the account Type.
  5. Enter a name for the account (Upfront Deposit) in the Name field.
  6. Hit Ok.

Then, we need to set up an item to use when we record the associated transactions. Here's how:

  1. Select Lists from the top menu bar.
  2. Choose Item List.
  3. Right-click and select New from the pop-up menu.
  4. Select Service (if you collect upfront deposits for services) or Other Charge (if you collect upfront deposits for products) from the Type drop-down menu.
  5. Enter a name for the item (Upfront Payment) in the Item Name/Number field.
  6. Select the Upfront Deposit liability account you created from the Account drop-down list.
  7. Hit Ok.

Lastly, when we receive the upfront payment from the homeowners, we need to record it.

  1. Select Customers from the top menu bar.
  2. Choose Enter Sales Receipts.
  3. From the Customer:Job drop-down list, select the customer or job.
  4. Select the account into which to deposit the funds if Deposit To field appears. If this field does not appear, the funds are deposited to Undeposited Funds.
  5. In the Detail section, select the Upfront Deposit item you created from the Item drop-down list.
  6. Enter the necessary information.
  7. Hit Save and Close.

You can follow the step 5 of this article to learn how to apply upfront payments or retainers to invoices: Manage upfront deposits or retainers.

 

Here's an article that will help you track how your business is doing: Customize company and financial reports.

 

I'm always here and ready to lend a hand if you need more help in completing your task with QuickBooks. You've got this!

Highlighted
Level 1

Entering Monthly HOA Fees

Thanks for getting back to me that was a big help. I want to tell you that our HOA is 39 units and since I am new to QB what I did when I set up the HOA in QB I entered the Quarterly invoices for all owners for the year. When I received payments from those who paid with the current quarter and advanced payments I just let quickbooks pay all the invoices. What I noticed in reports thought is only the current payment due is only showing in the P&L report.

If I understand your reply correctly as and example: if our Quarterly Dues are $820.00 and a owner sends me full years dues in full $3280.00 I would enter this information as a sales receipt into the accounts set up in your initial reply THAN apply the amount required to the current invoice due? or apply the amount due currently ($820) and the balance ($2460) to the Upfront Deposit account?

Thanks again for the Help

Dave

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Moderator

Entering Monthly HOA Fees

Sending good vibes your way, @DS52. Thanks for getting back to us.

 

I'm glad to hear we were able to assist you in understanding the best way to handle this in QuickBooks. I'm here to clarify about my colleague's previous post.

 

According to your example, you'll want to record the whole $3,280.00 in a Sales Receipt and use the Upfront Deposit item that you created from the prior steps. Once the Sales Receipt has been recorded, you'll want to record a payment on the Invoice using the retainer account you setup. This will debit from the retainer and leave you with the remaining amount for the prepaid expense.

 

Please touch base with us here if there's anything else you need, I'm determined to ensure your success. Wishing you and your business continued success in all that you do!

Highlighted
Level 1

Entering Monthly HOA Fees

Michael thanks I thought it would be that way. However I am going to leave well enough alone this time around  I don't if going back and reconstructing this method outlined to me is a good Idea all the money is deposited and I don't want to screw up my books. But I will use this method the next time I receive advanced payments.

Thanks

Dave

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