Mark-up On Vendor Expenses

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 handle this in three steps.

STEP ONE:  BILL THE PROPERTY THE MARKED UP EXPENSE

Post the full $100 charge to the property, selecting the bank account the fund are to be pulled from (or leave at "none" if the funds are to stay in your operating account), the expense category for repairs, list your management company as the payee, and add the name of the vendor performing the work in the memo line.  


STEP TWO:  TRACK TRUE VENDOR CHARGE 

Now that you have charged the property for the marked up expense, you will need to track the actual vendor expense and you'll do so at a company level.  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:  http://www.rentecdirect.com/kb/2011/12/tracking-business-income-expenses/

After setting up your company "property", Post an expense to this ledger for the actual vendor charge of $90, select "print check" or other payment method if not printing check through Rentec, select the bank you paid the vendor out of, the category you want to track and add in a memo line with the property the bill was for.


STEP THREE:  TRACKING YOUR INCOME 

Post an income transaction to your company's ledger for the amount you billed in STEP ONE.  Add in the bank account the funds are deposited into (or none, if the funds are not being moved), the income category you wish to use and a memo line of which property/vendor the income is for.

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