Rent Received & Pre-Paid Electricity
I have a tenant who direct deposits $150 each week into our account. $100 is allocated to rent received and the remaining $50 is electricity paid in advance. How should I record the electricity pre-payment? On receiving the electricity bill, I invoice the tenant for their portion of the bill. I want to be able to apply the pre-payments to the invoice so they only have to pay the balance owing. Many thanks in advance for your help.
Hi Leighton,
Thanks for your post, and my apologies for the late response.In this type of situation, we recommend reaching out to your accountant for an accurate solution. However, in my opinion, when you have an invoice recorded for $150, any surplus amount will be converted into credits, which can then be applied to other invoices. You can also visit this help article for more information about: Customer returns, credits and refunds
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Regards,
Earl
