Income net of deductions


G

Graham

Hi - can anyone advise how to track income and expenses
for property I rent ?

1) I receive rental income direct to my bank with
management fees already deducted. How should I track the
expense of these fees ?

2)I would like to track the income & expense for each
property so I have set up a seperate account for each one.
What is the best way of tracking each income & expsnse
entry for each property without double entering ?

Thanks for your help,

Graham.
 
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G

Glyn Simpson, MVP

Hi Graham

If you get the expenses with fees deducted, and know the gross income and
the cost of the fees, then you could set up a split transaction - net value
the amount you receive, but the split made up of the gross income less the
fees.

I would use classifications in this instance. If the money comes into the
same account, then this, perhaps is the best way
 
G

Graham

Thanks Glyn. I think I understand but I still think there
is a problem.

I download my statement from my bank so the value is
already net of fees.

Eg. Rental income is £500 and fees are £100. My bank
statement says £400. If I ammend this then my accounts are
inaccurate at a top line level ?

GRaham.
 
G

Graham

Thanks Glyn. I think I understand but I still think there
is a problem.

I download my statement from my bank so the value is
already net of fees.

Eg. Rental income is £500 and fees are £100. My bank
statement says £400. If I ammend this then my accounts are
inaccurate at a top line level ?

GRaham.
 
G

Graham

Thanks Glyn. I think I understand but I still think there
is a problem.

I download my statement from my bank so the value is
already net of fees.

Eg. Rental income is £500 and fees are £100. My bank
statement says £400. If I ammend this then my accounts are
inaccurate at a top line level ?

GRaham.
 
G

Graham.

Thanks Glyn. but I think I still have a problem.

I download my statements from the bank. If income is £500
and fees are £100, my statement shows £400. I could ammend
this to read £500 and enter a Split but this would make my
accounts inaccurate at a top level ?

Graham.
 
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A

Andrew S. Clark

Hi Graham.

They won't be inaccurate.
You have a deposit of £400 made up of:
Rental income: £500
Management fee -£100

So the top line number will balance out and you can still report on the
income and the management fee separately.

Andrew.

Thanks Glyn. I think I understand but I still think there
is a problem.

I download my statement from my bank so the value is
already net of fees.

Eg. Rental income is £500 and fees are £100. My bank
statement says £400. If I ammend this then my accounts are
inaccurate at a top line level ?

GRaham.
 
G

Graham

Andrew,

Thanks, but...the value actually going through my account
is £400. If I ammend it to £500, my MOney account will be
inaccurate and show a difference when compared to my Bank
statement.

Graham.
 
G

Glyn Simpson, MVP

Hi I think you misunderstand how to do this.

The total value of the transaction will be £400. This is a split transaction
made up of two items in the split. The first is the £500 rental income,
booked against an income category. The second part of the split is £-100,
which is booked against the expense income of the management fee.

Because you have a split transaction, you'll only see one transaction on the
account register and that would be the sum of the splits, ie £500 - £100 =
£400

When you download the item, then the transaction you'd match against is this
£400 transaction. You will need to put in the transaction before download,
or modify the downloaded transaction into a split transaction afterwards if
you didn't have it already in the register.


Andrew,

Thanks, but...the value actually going through my account
is £400. If I ammend it to £500, my MOney account will be
inaccurate and show a difference when compared to my Bank
statement.

Graham.
 
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G

Graham

Thanks Glyn - I'll have a play with this over the weekend.
I appreciate your assistance.

Graham.
 

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