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A
Angela Paulson
September 15, 2024
Question

Please help - I don't know how to enter this expense that is offset by a credit larger than the expense

  • September 15, 2024
  • 1 reply
  • 0 views

Hi,

I have a vacation rental property that offers Property Management services through the Homeowner's Association. This month they started adding a credit for the collected rent payments to our HOA statement. The amount of the rent they collected is larger than the HOA bill and I now have a credit balance with the HOA which can be applied to future HOA expenses. QBO won't allow me to enter the monthly billing statement with the credit balance and I can't figure out how to make the appropriate entries that will correctly credit the renter for the rent paid, categorize it correctly as rental income yet leave the credit as a credit balance on my HOA dues account. Can anyone help me with how to handle this? Any help will be most appreciated. I wasn't sire which board I should post this to, so if I posted to the wrong board, please let me know and I'll post it in the correct section.

1 reply

C
Carneil_C
September 15, 2024

Thanks for laying out the details of your concern, Angela. I can help you handle these expense transactions you want to enter in QuickBooks Online (QBO).

 

You'll want to create a vendor and a bill to record the expense. You can follow the steps below.

 

Here's how to enter a vendor credit:

 

  1. Click + New and select Vendor credit.
  2. In the Vendor dropdown, choose your vendor.
  3. Enter the Category details or Item details depending on how you record purchases with this vendor. Usually, this is the category, product, or service you’re getting credit for.
  4. Click Save and close.

 

Once done, you can now enter the bill. I'd be glad to guide you on how:

 

  1. Click +New and select Bills.
  2. Choose the vendor.
  3. Enter the details needed, then hit Save and Close.

 

Then, use the vendor credit to pay the open bill. You can follow the steps below:

 

  1. Open the bill you want to pay and click the Make Payment button.
  2. In the Bill Payment, the bill is marked as an Outstanding Transaction.
  3. Go to Credits and choose the exact amount.
  4. Select Add, then Save and close to confirm.

 

Moreover, you can record the rental income by creating a sales receipt or an invoice and receiving payment.

 

Also, this guide can serve as your reference to record a credit from a vendor: Enter vendor credits and refunds in QuickBooks Online.

 

On the other hand, check out this article for more insights if you need to review all your vendor transactions in QBO: View vendor transactions.

 

Feel free to reply below if you still have questions about handling your expenses, vendor credits, or other transactions in QBO. We'll be right here to help.

A
Angela PaulsonAuthor
September 16, 2024

Dear Carneil,

 

Thank you for your quick and thorough reply. I can see that this will keep my accounts balanced correctly with the HOA, but I also need to track the payments that have been made by various renters and to apply the payments to the invoice of the correct renter.

 

Renters are initially invoiced for a deposit and partial rent to hold the unit for them and then the balance is due 90 days prior to the rental period. Because this is a vacation rental, partial payments come in for multiple renters during the same month and I need a method of ensuring that each renter's payments are applied correctly.

 

Thank you for any additional help you can offer for this part of the equation.

 

Angie

JoesemM
JoesemM
September 16, 2024

Hello Angela. Thanks for your response and detailed information regarding your concern. Let me assist you in accurately recording the payments for the correct renters in QuickBooks.

 

You can record rent from your tenants in two ways. It depends on when you receive the actual rent payment. Create an invoice if you receive payments at a later date or sales receipts if you receive their payments right away.

 

Before doing so, you must add your tenants as customers to QuickBooks. Then, you can follow the steps below to record the rent income.

 

Here's how to create an invoice:

 

  1. Go to the + New button and select Invoice.
  2. Complete the fields with the necessary information.
  3. Select Save or Save and send.

 

To receive the payment:

 

  1. Go back to the + New button and select Receive Payment.
  2. Choose a customer or tenant, then select the invoice/s you want to close out.
  3. Select the payment method and account to which the payment will be deposited.
  4. Click Save and close.

 

You can follow this article for detailed guidance on creating invoices in QuickBooks Online. Then, you can now record the invoice payments. 

 

If they've made payments right away, you can use a sales receipt. Here's how:

 

  1. From the + New button select Sales Receipt.
  2. Choose the name of the customer.
  3. Add the sales information, then select Save and Close.

 

See this article for more information: Create and send a sales receipt. Also, here’s more information about when to use an invoice or a sales receipt.

 

I also suggest reconciling your accounts every month. This practice aids in monitoring your income and expense transactions to identify potential errors. For more details, open these links:

 

 

Feel free to ask questions about recording payments for your renters or any inquiries about QBO. Just reply below, and I'll follow up to assist you. Stay safe.

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