Mark-up On Vendor Expenses

For example: If you receive a $90 invoice for plumbing work from ABC Plumbing.  Your policy is to mark-up each invoice by $10.  Here is our suggestion on how to:

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/

Now post an expense to this ledger for the actual vendor charge of $90 to your business account(company account)


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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