We are a new user to QB Desktop Premier 2021 Contactor Edition and still in set up mode. Our testing within the Sample Company data has raised issues.
ISSUE 1: Consistent with good financial accounting practices and the format of Form 1065 Partnership/LLC tax returns, the accounting of commercial property Rental Income and Rental Expense is not a Trade or Business and needs to be categorized and shown below the standard and non-changeable income statement line of Net Ordinary Income. Thus, the accounting has to be within the the standard and non-changeable Other Income and Other Expense sections that then lead to Net Income. All good so far.
We need a Rental Profit subtotal, being Rental Income less Rental Expense. And then we need other accounts further down in the the Other Income & Expense section for Capital Gains, Interest Income, K-1 Allocations, Other Deductions, etc. But the software only allows one Other Income grouping followed by one Other Expense grouping. No more, from what we can tell.
How do we get the Rental Profit subtotal, without showing Rental Expenses as negative Other Income items, if we can't nest several Other Income/Other Expense groupings together? It would be bizarre to have trade or business Operating Expenses above the line as positive numbers and property Rental Expenses below the line as negative numbers.
ISSUE 2: To create subtotals, we added accounts that are intended to be non-posting and linked other accounts to be subtotaled. Fine. But QB shows those (as highlighted in orange) as a posting account and added "-Other" to each. The Chart of Accounts does not seem to have a setting for a header account to be a non-posting account, from what we found.
Does anyone have solutions or a workarounds?