Question

Due To/From for property management

Forum|Forum|7 years ago
January 15, 2019
3 replies
0 views

I own a LLC (MGMT LLC) that collects income and pays expenses for my other LLC’s that own rental real estate assets (Holding LLC). When expenses get paid from MGMT LLC’s bank account, how do they show up on Holding LLC’s books (PL).

Example:

MGMT LLC pays $600 to painter for the property owned by Holding LLC.

I understand that MGMT shows a $600 Due To/From amount in the asset column and Holding LLC shows -$600 Due To/From in the asset column (which means it owes MGMT LLC $600). If I want to pull a PL report for Holding LLC, how does the $600 expense to the painter show up if it was paid by MGMT and its on MGMT’s QB File?

QuickBooks Desktop

Rustler

When management pays the vendor bill, the account used on that payment is the due from holdings, so no expense is posted. Then management invoices holding using an item which posts to that due from account

when holdings pays the bill from management, they use the expense account for what the bill is for, painting expense

A

AADPMGMT2016Author

Thank you for your response.

In my real life scenario, MGMT LLC (owned by me) manages 60 properties and collects income and pays expenses on all of those properties (owned by me in a Holding LLC) which includes several rehabs. The monthly transactions are over one thousand. I'm trying to figure out a way to have all the expenses report on the LLC that owns the property, but hopefully without having to manually enter those 1,000 transactions again in the Holding LLC's books.. I'm ok with having a Due To/From balance on my Balance Sheet.

I attached a PL and BS from one of my Holding LLC's that owns a small apartment complex. As you will notice there is a Due To/From balance in the asset column. This was all done from a former bookkeeper, that I unfortunately no longer work with. Now I am trying to figure out a way to do the Due To/From on a large scale (1000+ transactions) since ALL transactions go through MGMT LLC.

Can you suggest the most efficient way to handle this in Quick books?

Thank you!

S

ShiellaGraceA

You'll want to record them in lump sum amount, AADPMGMT2016.

Just make sure to choose the correct accounts when creating the transaction.

As what @196025 mentioned, it's best to check with your accountant to properly handle this transaction.

We're always here if you have other questions.

A

Anonymous

Hello, AADPMGMT2016.

I’ve read similar thread as this in the Community and one of our Community backers suggested this “It's like this: The Company whose check got used, you post that check as Other Current Asset = still your funds, to be recovered. The Company whose payment got made for them enters either the Reimbursement check, but lists what they are paying for. Or, they can enter a Bill to pay the real vendor name, and a Vendor Credit showing this is Owed to the other company = Other Current Liability; in this case, they need to then pay out that liability.”

You can also check with your accountant on how you can record this transaction. Visit us again if you need anything else.

L

loriatthefarmbrewery

We want to make a lump sum ACH rental payment to our lease holder for 2024 and then track monthly rent payments against that lump sum. Is there a way to do that in QBO?

S

SashaMC

Hello loriatthefarmbrewery,

Thank you for reaching out to the QuickBooks Community! Concerning the large payment to your leaseholder, you could look into our Online Bill Pay service to take care of that ACH. For more information about this, feel free to check out the article below:

Online Bill Pay

However, could you clarify what you mean by tracking monthly rent payments against that lump sum? I would love to assist you here.

I will be looking forward to your reply. See you in a few.

L

loriatthefarmbrewery

I know how to process an ACH. What I'm unsure of is how to log the lump sum yearly payment and then process monthly rental fees against it. TIA!

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