Using memorized invoices, what is the most efficient procedure to record a net check from a property management company that retains a balance to pay repair expenses?
I use Class: Property, Customer:Bldg, Customer:Job: Prop Mgt Co, cash basis tax reporting, and a manual checkbook.
I incorrectly set up automatic memorized monthly invoicing to track rent receivable from prop mgt firm using Items such as mgt fee, plumbing repairs, electrical repairs, as negative offsets in the invoice to get to the net deposit, but that created P&L reporting problems. If I only collected 9 months of rent, paid 9 mgt fees, the P&L still showed a full 12 months of mgt fees (don't understand why, but this appears to be an incorrect method anyway).
The issue is not the memorized invoice, that is fine, the issue is that you are using it for months that you should not. Rather than set it to enter automatically, set the memorized invoice to be scheduled, then you will see it in reminders, either use it or skip it as required.
Wasn't tracking the cash balance held by the management company. Use a $200 ZBA, or ZBA and Petty Cash account for this property?
Yes, this should be set up as a cash type bank account name it for the management company-escrow or something
Example: $800 rent, $80 mgt fee, $20 (haha) repair expense, $200 balance retained by property mgt co.
If they are holding 200 in escrow, and the expense was 20 for that month, then all they should hold back on that transaction is 20 - so I do not understand how this is working for you
Basically the invoice should look something like
fee expense, -80
plumbing exp, -20
net payment, 700
all they do is spend the 20 from escrow, report it to you, and hold back that 20, but from your view of things, the hold back is invisible, there was a 20 expense is all you enter. That assumes the escrow account they have has in fact 200 in it