Mark-up On Vendor Expenses

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As a management company, if you typically mark-up vendor charges when posting expenses to a property, you can handle your documentation in Rentec.

For example, say you receive a $90 invoice for plumbing work from ABC Plumbing.  Your policy is to mark-up each invoice by $10.  To reflect this scenario in Rentec,  we recommend you post the full $100 charge to the property,  select the bank account the fund are to be pulled from, select the expense category for repairs, and list your management company’s as the payee, and for reference, post the  name of the vendor performing the work in the memo line.  Now you can post this charge to the property.

Now that you have charged the property for the marked up expense, you will need to track your true expense of $90 in your company’s ledger, and you will track the actual vendor expense, and bank account they were paid out of, which will be necessary for accurate 1099 population and company expense reports.    You will also want to track the $100 of income you are receiving from the property for this repair by posting a $100 income transaction to your company’s ledger. We offer a simple solution for tracking company income and expenses separate from property/owner expenses within Rentec.  Here is a help-document from our online knowledge base that covers the how-to: