There’s an amount showing in our current account which is the first month’s rent received on a rental property less a finder’s fee to the rental agency. Meanwhile the invoice for this finder’s fee is in the purchases as unpaid. I’m trying to work out how to tag this. Any advice?
If its a regular thing then you can open another bank account and call is “Rental Bank” . Tag it with gross rent and agent fee, balance will be interbank transfer to main bank a/c
I’m not sure I understand that. But this situation is not really a regular thing as it’s only applied once in the year so far. Monthly payments come in from 2 tenants directly and I tag them in the current account to the category ‘Rent Income’. It’s just that the first rental payment relating to one of the 2 investment properties had the tenant finder’s fee deducted from it. The tenant finder then supplied me with an invoice for that amount he deducted. I’m not sure how to register the payment of that invoice by us as well as the first rental payment by the tenant as there’s only one figure showing in the current account.
In that case you need to do two entries in bank account , which will have over all net effect as follows
say rental was 600 and tenant finder fee was 50, you got 550 in bank
You need to log payment against invoice and book rental in gross 600
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Can you provide an idiot’s guide as to exactly how you can do that. If I click on the ‘tag me’ button, where do I go from there?
you need to delete that net amount entry in bank and log payment against tenants finder purchase while on invoice screen itself and book entry of gross rent (with out deduction) in bank and tag it to rental income account
Ah! Simple when you know how. Thanks a lot.