Hi, my colleague and I are into property rental business. Our Rent to Landlord for November and December will not be remitted, because we both agreed that it will be used to supplement the repairs for the building.
I need help with how to do about it in Quickfile. The invoices for rent were already created and we need to do this entry as advised by our Accountant:
Dr. Rent Expense xxx
Cr. Repairs Payable xxx
If we log payment to the rent invoice, we cannot credit it to the specific nominal account except to cash and other cash items.
I hope someone can shed light on this. Thank you in advance!
Hello @Onani
Dr. Rent Expense xxx
Cr. Repairs Payable xxx
Depending on the situation (are the invoices paid, are you on cash accounting), you could do this as a journal via Reports > Journals > Create
Enter the 2 codes and the credit/debit values along with a description and the date you want it posted
Thanks @QFSteve
I can do the Journal entry, but just want to know if it will result in a double recording?
The invoices were marked as “Overdue” but it has to appear as paid. Would you rather advise that we delete the invoice and just do the Journal entry?
Hello @Onani
As I said, It would depend the situation as journal would not get picked up by a vat return.
If the invoices and repairs are vatable you would not want to delete them.
I would refer back to your accountant for specific instructions to avoid double accounting.
Hi @QFSteve
We are not VAT registered and we are using Accrual basis.
I’ll just rephrase my question and if it still won’t solve the problem, then maybe we’ll have to refer back to our Accountant.
How do we flag the invoice as paid and credit it to Repairs Payable?
The invoice is already a debit to Rent Expense, and if I make a Journal entry debiting the Rent Exp, it will surely result in a double recording.
Hello @Onani
Please be aware I am not an accountant nor bookkeeper.
Based on what you have said
- Raise a credit note from the original invoice (this will reverse the effects)
- You can then post the journal as mentioned above
Thank you @QFSteve for answering my queries. I appreciate your time and effort.
Will do as you suggest. Thanks again!
Could you not mark it as paid into your account but when asked how mark it as some other instead of bank transfer for example. Then put a note in the comments section explaining repairs were done to the same value in lieu of payment. That way the invoice is marked as paid, you have a note. The only thing that wouldn’t be exactly right is the bank balance. That i am sure could be marked as an adjustment by your accountant? As above I would ask your accountant
advise.
Hi
If it were me I would use a bank suspense account (if you don’t have one you can create a new bank account and call it Suspense) create a payment and a receipt for the same amount and tag it to clear the outstanding invoices and at the same time show money received on the correct income code
The bank suspense should go back to zero
Hope that helps
Chris
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