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R
res@finisroadrvp
December 1, 2022
Solved

If I waive my tenants rent one month for work he did for us how may I record this? The rent is $500.00.

  • December 1, 2022
  • 1 reply
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My tenant did some work for us.  We told him we would waive one months rent in exchange.  How do I record this?
Best answer by Rainflurry

@res@finisroadrvp 

 

Set up a bank account called 'Clearing Account'.  You are going to use this account to deposit the "payment" from your tenant as well as "pay" your tenant for the work they did.  The two "payments" will cancel each other out and you will also have booked $500 in rental income and $500 in expenses, netting to $0, which is what you want.

 

First, create the invoice for the tenant's rent, receive the payment on the invoice, and deposit it to the newly-created Clearing Account.  Then, create a bill for the work he did and pay it using the same Clearing Account.  That's it.  

1 reply

Rainflurry
RainflurryAnswer
December 1, 2022

@res@finisroadrvp 

 

Set up a bank account called 'Clearing Account'.  You are going to use this account to deposit the "payment" from your tenant as well as "pay" your tenant for the work they did.  The two "payments" will cancel each other out and you will also have booked $500 in rental income and $500 in expenses, netting to $0, which is what you want.

 

First, create the invoice for the tenant's rent, receive the payment on the invoice, and deposit it to the newly-created Clearing Account.  Then, create a bill for the work he did and pay it using the same Clearing Account.  That's it.  

R
res@finisroadrvpAuthor
December 2, 2022

Thank you.  I do see a bank account called " cash on hand" that came with the program but it will not allow me to edit the name.  You're right I will have to create a new one.

 

R
res@finisroadrvpAuthor
December 2, 2022

I just tried to create a new bank account under "banks" then below is a section called "tax form section" with options to choose.  Not sure which one to choose.  My choices are cash on hand, checking, money market, rents held in trust, savings, trust. I have to choose one to create this bank account.

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