In everyday regular accounting, payments posted to your tenant’s ledger flow to the property and owner ledger automatically. With one posted transaction, the income flows to all three ledgers.
In special circimstances, you may not want to record income received from your tenants into the property and owner ledgers, rather your policies might dictate that this income is to be received at a company level and recorded to specific income categories. Once such scenario would be if your office accepts rental application fees from a tenant and those fees are paid directly to your management company, rather than the property they are applying for.
To reflect this scenario in your program, you would want to follow these steps:
1. Create a custom income category in Settings/Setup Categories for the application fee income.
2. If you haven’t already done so, create a new Property in the Property tab for your business to enable tracking application fee income. (click HERE for more information on tracking general business expenses in Rentec.)
3. Post an application fee charge in the tenant ledger. Leave the category at “0000 charge.”
4. Post a payment in the tenant ledger and select the income category you want this payment to post to. Add in a description as this will appear in your company’s ledger.
TENANT INCOME TRANSACTION
5. Edit the transaction you just made in the tenant’s ledger and change the property assigned to the transaction to be your company’s “property.” (Note, if you do not want this fee recorded anywhere except in the tenant’s ledger, you can select “None” for the property and the transaction will only post in the tenant’s ledger.)
EDITING TENANT INCOME TRANSACTION
6. Now your tenant will be charged and credited for the application fee, the actual property and owner will not reflect this transaction, and your business will have documentation of income received
NEWLY CREATED BUSINESS “PROPERTY” LEDGER
TENANT’S LEDGER DETAIL