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5
5491_2
November 18, 2022
Question

Payments from a customer

  • November 18, 2022
  • 1 reply
  • 0 views

I have a customer that also uses my building for his company.  I pay the rent and utilities then he will pay me back for his share of the rent and utilities.  I'm not sure if I apply this payment to other income and name it reimburse for rent and utilities or receive it as other income and apply it back to the original expense account I paid the rent and utilities.  

 

1 reply

T
TirzahC
November 18, 2022

Thanks for using QuickBooks in tracking your customer's payments.

 

If you're a property manager, we provide service to property owners and the tenants of those properties. In such a case, you need to create and manage two company files:

 

  • Rental property company. You collect rent, pay bills, and manage the property for an owner.
  • Property management company. That is your own company where you receive income for managing properties.

 

There are two ways to record the rent from your tenants and it depends on when you receive the actual rent payment.

 

To record the rent income in QuickBooks:

 

  • as invoices, if you receive payments at a later date.
  • as sales receipts, if you receive their payments right away.

 

Moreover, I'd recommend consulting your accountant for further guidance in choosing the account specifications and make sure everything is recorded properly.

 

For more detailed instructions on how to record rent income in QuickBooks, please click this article: Record transactions for a property management company.

 

Drop a comment below if you have any clarifications about handling customer's payments. I’ll be right here to answer them for you. 

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