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Old 11-06-2017, 10:02 AM
JimM JimM is offline
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Join Date: Nov 2017
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New client: a rental property company

I've seen suggestions that property owners be Customers and tenants be Jobs. My new client uses classes to report P&L by owner/Customer and creates a monthly invoice for each owner/Customer to process reimbursable expenses. Each expense is assigned the class of the owner, but we're stuck on the class for the monthly management fee charged to the Customer:
The fee is income to company (the General class), but is also an expense to the owner/Customer's class.
Any ideas on how to show the fee in both the company's General and the Customer's P&L by Class reports?
Many thanks for your suggestion.
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Old 11-08-2017, 06:16 AM
Rustler Rustler is offline
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Location: Texas - The Republic
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Assuming the new client is running a property management company.

The owner of rental property would be a vendor, tagged for being due a 1099 at year end.

Each address would be a customer, and the tenant a sub customer/job. The tenant gets invoiced for rent.

Rent would post to a liability account and you use a class named for the vendor on the invoice and post all rents to the same liability account. The liability account need to be mapped to the 1099 too.

When you pay the vendor, the check detail looks like this

liability account, $$$ ( full amount of rent collected)
company income account, -$$ (the fee amount as a negative number)

the check will net to the amount due the vendor (property owner), management company income posts, and the 1099 amount is tracked correctly.

If the management company pays for property expenses, then in the check detail list an income account for tenant expense income, and the amount you paid for the expense a negative number. Use the vendor class on any expense bill you pay too. I do not like netting income and expenses, but you could list the actual expense account you used and the amount as a negative, the bottom line effect is the same.
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