Payments

I have Reckon Accounts Plus. We have recently bought a rental property and I need to record rental payments from tenants.

Where on the platform shall I enter this and what category shall i put it under as there isn't too many options. It's not really a charge, service or payment.

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Comments

Kris_Williams

There are many options, I would go to deposits and enter it there, using an income account called Rent Received for the total rent and relevant expense accounts, management fees etc. entered as negative figures

Zappy

I would NOT follow Chris' advice. If you use deposits you can't track GST. Also the reporting is more restricted. You could create a sales receipt for the income and use write cheques for the expenses. Call me if you get stuck 0407744914

Kris_Williams

But there is no GST on rental properties which is why I suggested that way, as I said first up there are many different ways, and I have been doing it that way for over 20 years successfully

Danielle_10862839

Thanks to you both. That is correct, I have to make sure I don't claim GST and it can't go on my BAS.

I have set up account as Rent Received and type as Other Income.

I have 2 ways of entering it, either creating an invoice each time and then making payment or just going straight to create sales receipt.

However, whichever way I go, I have to select an item code and none really relate to this.

Screenshot 2022-01-14 201238.jpg

Kris_Williams

I would just use other charge, a sales receipt is all you need but you still have expenses deducted from the rent don’t you?

Zappy

Kris well that's not true. It's only residential rents which are input taxed. Dani as I said, create a sales receipt do NOT use make deposits. You'll regret it later. If you like you can set the file up so GST tracking is turned off. That will solve your other problem. And thanks for your question.

Kris_Williams

Yes as I said In my last post, use a sales receipt, depends how simple you need it to be. I like the KISS method

Zappy

Is that like the Liverpool kiss method?

Danielle_10862839

https://community.reckon.com/discussion/comment/20626680#Comment_20626680

Yes, I have all my accounts set up for expenses. And I did created one for the income (rent). I will put as other charge. The accountant will sort if it is not right.

Danielle_10862839

https://community.reckon.com/discussion/comment/20626681#Comment_20626681

Thank you for your help

Zappy

Delighted to be of assistance

Acctd4

I have several clients with rental properties (both commercial eg with GST & personal eg input taxed/no GST) & track them beautifully in RA 😊

You need to use a Clearing account - This is a dummy Bank account to receive funds into/pay out of.

As previously stated, use a Sales Receipt for the income component, depositing to (at the bottom of the screen) your Clearing account

To enter the expenses, use Write Cheque transactions, also paying out of the Clearing account. The net balance remaining will equal the net funds deposit that you actually received. For this, I just enter another Write Cheque out of the Clearing account posting to the actual bank account it was received into. (You can also use Transfer Funds but I prefer the Chq as it allows for more detail)

I set up each component in a Memorised Transactions Group to maintain consistent formatting & ease of entry.

NOTE: Your Clearing account should always be zero at the end (or if using an agent who holds some of the funds, whatever that amount is as shown on your monthly Statement from them)

Zappy

Shaz I agree that's my preferred approach. It gets tricky sometimes with the trust statements because of timing differences but its not particularly onerous.

Acctd4

”I have to make sure I don't claim GST and it can't go on my BAS …”

Danielle, is the rental held by the trading entity or personally? If it’s a commercial property, the income IS included at G1 (with GST shown at 1A & GST at 1B for any expenses that include a GST component)

NOTE: Input-Taxed income (including residential rent) is also included at G1 if earned under the GST-regd entity! However, no GST is reported/claimed:

If the property is held personally then no, all the transactions are BAS excluded 😊

Acctd4

I’ve never had a problem with timing - the Sales Receipt income/Chq expenses get dated as per the Statement but the net funds transfer Chq gets dated as per the actual monetary deposit into the bank account 🤔

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