Today’s question comes from a creative landlord who wants to credit a tenant for work performed. (If you like this, consider buying our full training).
I’m a landlord, and sometimes I make an arrangement with a tenant to get a rent deduction in exchange for work done. How do I record this in QuickBooks?
Example: John Smith, a tenant of yours, also shovels snow for your apartment building. For this, he gets a $100 deduction on his rent during the winter months.
You want to indicate that you paid him $100 and decrease his outstanding rent due balance. Here’s how:
- From the Banking menu, select Write Checks.
- Select the Vendor from the Pay to the Order of drop-down.
Enter the expenses and/or items for which you are writing the check.
Select the Expenses tab.
On the next blank line, select the Accounts Receivable (A/R) account from the Account drop-down menu.
Enter a negative (-) amount equal to what you wish to deduct for the outstanding accounts receivable balance. Here, $-100.00.
On the same line, select the customer:job “Smith, John” from the Customer:Job drop-down menu.
Enter a memo into the Memo field on this line. This memo is an optional explanation of why money is being deducted from the check.
Once all of the information has been added to the check, click the Recalculate button. This is located in the bottom-left corner of the Write Checks window.
Now, click Save & Close.