Customer invoice at question

Hi there, Tom. I'm here to ensure you can record the tenant's sublease.

In QuickBooks Online (QBO), we can bill a tenant for sublease income and customize it to apply it against the rental expense. This way, the rental income reduces the rental expense. To accomplish this, we can create an expense account and a sub-account first.

Here's how: 

1. Go to Chart of accounts and choose the green New button. 
2. Key in the information and hit Save. 
   

To create a sub-account, we can:  

1. Follow the same process. 
2. From the Save account under the dropdown list, select the expense account you created.  
3. Enter the information and click Save. 
   

Second, we create a check or expense to record the rent issued by your landlord, affecting the expense account. Let me show you how:

1. Create a Check or Expense. 
2. From the Payee field, select your landlord. 
3. On the Category dropdown menu, choose the primary expense account. 
4. Fill out the relevant information and select Save and close. 
   

Third, we can bill your tenant by generating an Invoice and selecting the service item specific to the sublease. 

To create a service item affecting the expense account, perform the outlined steps: 

1. Go to the Sales menu and choose Product and service. 
2. Select Service as an Item type. 
3. Key in the necessary information 
4. On the Income account section, select the expense sub-account you created. 
5. Click Create new. 
   

Then, we create the Invoice. Here's how: 

1. Locate the Invoice window. 
2. Choose your tenant from the Customer dropdown menu. 
3. Select the service item and fill out the missing information. 
4. Hit Save. 
   

Afterward, you can pull up the Profit and Loss report to generate your transactions and provide a snapshot of your tenant's sublease. I'll add an image for visual reference. 

Moreover, I've included these articles about managing your reports in QBO:  

• Customize reports in QuickBooks Online
• Memorize reports in QuickBooks Online

Keep me posted if you have additional questions about managing your customer invoices in QBO. Keep safe always!

Hi @Tom208, responding to your question... If you simply wish to avoid this rental activity (both payments from tenant and payouts to landlord) from showing up on your P&L, you can simply use liability accounts to track each. This way, the movement is reflected in your balance sheet and can be shown with a transaction report instead of affecting your P&L, all while being able to track the activity. In this case, you are neither tracking this as income or expense. Based on your original question, it seems this might be a solution to consider.