Invoice members of a club but record the fees received as an asset (without increasing income)

IdahoPilot · ‎March 31, 2026

Hello all -
This is likely an odd use of QB - but here goes:

We have an LLC that exists solely as a container for a piece of property.

Each month, I have to invoice the members of the LLC for their use of the property - which is cost allocated to cover their share of recurring expenses and to fund some accounts that are essentially pre-paid expenses that accrue over a long time period and will eventually need to be paid as expenses or refunded to the members. I have to keep track of those reserve account balances - but they're not bank accounts.
What would be the best way to keep track of their time / usage of the property, invoice the members, and fund the accounts?

Currently, I have some items set up as "income" events (for property usage), invoicing the members at the agreed upon rate - and then receive payments and deposit to the bank account. Behind the scenes, I've made journal entries to convert the "income" to the reserve accounts - but, of course, crediting the "income" account and debiting the "asset" accounts results in the correct asset values, bank account values - but results in doubling the income account.

Any suggestions would be welcome...
by the way, this is intended to be a net zero revenue and profit arrangement. all of the members of the LLC own the property jointly and only want to cover current and future expenses with this fee arrangement.

Thanks!

GianSeth_A

Hi, IdahoPilot. The reason your income is doubling is that both your invoice and your journal entry are affecting your revenue accounts. To achieve a net-zero balance, you need to link your service item to an Other Current Liability account. Since this changes your reporting, it's a good idea to have an accounting professional double-check this for your specific needs.

To create another current liability account, go to the Lists menu and select Chart of Accounts. Click the Account button at the bottom, select New, and choose Other Current Liability. Name it and click Save & Close.

Now, to map the item to your invoice, go to Lists > Item List, double-click the item for property usage, and change the Account dropdown to the new liability account.

When saving, QuickBooks will prompt to update existing transactions. Clicking Yes updates past invoices but requires deleting old manual Journal Entries to avoid double balances. Clicking No only corrects new invoices, needing a final Journal Entry to adjust the doubled income in your Profit and Loss.

To track usage, go to the Employees menu and select Enter Time, then Weekly Timesheet. Enter the member's name and property under Customer: Job and check the Billable box. When you create an Invoice, QuickBooks will automatically ask to pull that time in for you.

For any further questions, feel free to leave a comment below.

View solution in original post

GianSeth_A

Hi, IdahoPilot. The reason your income is doubling is that both your invoice and your journal entry are affecting your revenue accounts. To achieve a net-zero balance, you need to link your service item to an Other Current Liability account. Since this changes your reporting, it's a good idea to have an accounting professional double-check this for your specific needs.

To create another current liability account, go to the Lists menu and select Chart of Accounts. Click the Account button at the bottom, select New, and choose Other Current Liability. Name it and click Save & Close.

Now, to map the item to your invoice, go to Lists > Item List, double-click the item for property usage, and change the Account dropdown to the new liability account.

When saving, QuickBooks will prompt to update existing transactions. Clicking Yes updates past invoices but requires deleting old manual Journal Entries to avoid double balances. Clicking No only corrects new invoices, needing a final Journal Entry to adjust the doubled income in your Profit and Loss.

To track usage, go to the Employees menu and select Enter Time, then Weekly Timesheet. Enter the member's name and property under Customer: Job and check the Billable box. When you create an Invoice, QuickBooks will automatically ask to pull that time in for you.

For any further questions, feel free to leave a comment below.

IdahoPilot

Hello GianSeth_A!

thank you for your suggestion! That was a different way than I had been thinking of it, but I set everything up as you said and it worked great! And the accounting makes more sense than what I had been contemplating!

really appreciate your help!

thanks,

Idahopilot

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Invoice members of a club but record the fees received as an asset (without increasing income)