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davidjamesreales
Level 1

Portion of rental payment was used to pay a bill. How do I show rent being paid in full when part of the money was used to something else?

 
3 Comments 3
Maybelle_S
QuickBooks Team

Portion of rental payment was used to pay a bill. How do I show rent being paid in full when part of the money was used to something else?

Hello there, @davidjamesreales.

 

I can help you show the rent being fully paid in QuickBooks Online (QBO).

 

We can create a journal entry if the payment you’ve received is less than the invoice you paid to a bill. This way, we can transfer the balance from Accounts Receivable (A/R) to Accounts Payable (A/P). The amount will be based on the payment to the bill. Doing so will serve as a credit on the invoice and payment to the bill.

 

Here's how:

  1. Go to the + New and select Journal entry
  2. Enter the Journal date.
  3. From the Account column, select the drop-down arrow and then choose Accounts Receivable (A/R).
  4. Under Credits, enter the amount you pay to the bill and then choose the name.
  5. On the second field, under Account, select Accounts Payable (A/P).
  6. Enter the same amount, under the Debits column.
  7. Under Name, choose your vendor.
  8. Click Save and close once done.

However, if the customer paid the rent in full, we can create an invoice. Thencreate a bill for the money you use to pay the bill.

 

Feel free to check this link about the accounts affected by debits and credits: How accounts are affected by debits and credits.

 

You can also visit our QuickBooks Community help website if you need tips and related articles in the future.

 

Please drop a comment below if you have other questions. I'll be right here to help you out. Have a great day!

davidjamesreales
Level 1

Portion of rental payment was used to pay a bill. How do I show rent being paid in full when part of the money was used to something else?

Hi Maybelle,

 

Thanks for the response!  My apologies, I'm still confused due to the fact the amount deposited into the bank is less than the total amount received from both customers. This is what happened in detail...

 

1.)  Customer #1 paid in full with cash - no invoice was created prior to payment.

 

2.)  Customer #2 paid in full with check - an invoice was created prior to payment.

 

3.)  A portion of Customer #1's cash was used to pay a vendor bill.

 

4.)  The remaining balance of Customer #1's cash was deposited with Customer #2's check.

 

Hope I didn't confuse you!  Thanks for your help.

ShiellaGraceA
QuickBooks Team

Portion of rental payment was used to pay a bill. How do I show rent being paid in full when part of the money was used to something else?

Thanks for the details, @davidjamesreales.

 

I just have the steps you need to correctly record the deposited amount into QuickBooks. You can use the find match option to match one deposit with three transactions in QuickBooks. Let me walk you through how.

 

  1. Go to Banking, then Banking at the top.
  2. Choose the deposited amount, then select the Find match radio button.
  3. In the Match transactions window, locate the invoice of your second customer.
  4. Scroll down and enable the Resolve icon.
  5. Under Add resolving transactions, look for your first customer under Payee drop-down and choose Accounts Receivable (A/R) under Category. Enter the Amount.
  6. Click Add new transaction. Then, search for the vendor's name as PayeeAccounts Payable (A/P) for Category, and the Amount.
  7. Hit Save. I've attach screenshots at the bottom.

With these steps, you'll be able to track your rental payments correctly. Also, make sure to create an invoice for customer #1. You can learn more about recording property transactions at this link here: Record transactions for a property management company.

 

I've also added our page about reconciliation that I'm sure you'll find helpful. It has step-by-step instructions to guide through in matching bank statements with QuickBooks accounts.

 

Feel welcome to leave a message anytime if you have questions. We're here to assist you further. Thanks for coming by and have a good day.

 

 

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