This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Marketing

A bit of data which remembers the affiliate who forwarded a user to our site and recognises orders from those who become customers through that affiliate.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Recording property purchase expense

Tips and advice on how to use Landlord Vision.
landlordvision
Posts:23
Joined:Fri May 13, 2016 2:19 pm
Recording property purchase expense

Postby landlordvision » Fri May 13, 2016 3:08 pm

Can you confirm the correct way of entering the purchase costs of a property?

Should this be allocated to the portfolio or identified under the individual property to which it relates?

emm
Posts:36
Joined:Fri May 13, 2016 2:27 pm

Re: Recording property purchase expense

Postby emm » Fri May 13, 2016 3:09 pm

Property purchase costs entered under Property Manager => Expenses, should be assigned to the property that they relate to with the "Property Buying & Selling Cost" option selected.

landlordvision
Posts:23
Joined:Fri May 13, 2016 2:19 pm

Re: Recording property purchase expense

Postby landlordvision » Fri May 13, 2016 3:09 pm

I have attempted to action this however I also have to select 'account' which gives me the option to create a new asset account or log under fixed assets. I have logged under fixed assets but the purchase cost does not show on the profit and loss report for the property (which is what I need it to do).

emm
Posts:36
Joined:Fri May 13, 2016 2:27 pm

Re: Recording property purchase expense

Postby emm » Fri May 13, 2016 3:23 pm

Hi Mubasher,
Should fixed asset purchases appear on the P&L? Here we want to record the property purchase. We have the following two scenarios and I just wanted to check that they are still correct:

In order to record Fixed Assets (Purchase of Properties) transactions please follow the steps as mentioned below:

A. In case there are no Payables (Cash Basis Transaction):
- Please go to Account Manager (in Left Panel)
- Click Journals
- Click Add Journal
- Enter Date, Description, select property and in Account fields select the accounts as:

Fixed Asset like Property and amount in DEBIT field
Bank/Cash Account and amount in CREDIT Field

B. In case there are Payables or Property purchased on Credit:

1. Go to Property Manager --> Expense --> Add Expense --> Enter details like Date, Reference, Property, Check Capital Cost radio button, Enter description, amount and in Account drop down please select relevant Fixed Asset Account

For Property you would select Building/Property account
For Furniture items select account 'Furniture & Fixture'
For Business Computers select 'Office Equipments Account'
Note: If there is no such Fixed Asset account you would create new one

2. Once you make the payment to Supplier (whether in cash or from Mortgage Account) please go to that invoice (Under Property Manager --> Expense) and record the payment. You would select Cash or Bank Account

Is this still correct and should this then show on the P&L?

mubasher
Posts:1
Joined:Fri May 13, 2016 3:17 pm

Re: Recording property purchase expense

Postby mubasher » Fri May 13, 2016 3:24 pm

1. Fixed Asset don't appear on P& L.

a. If the property is purchased like Ownership of the property then the user needs to record that under Fixed Assets Balance Sheet Account

b. If there are just expenses on property like Repair & Maintenance, Taxes, and bills etc. That should be recorded in P&L as an expense only.

c. If there is some re-construction, addition or change that should be recorded in Fixed Asset Balance Sheet account.

So whether it's about getting Ownership (Purchase of Property) or maintenance expense, the user would use the page Property Manager --> Expenses however they need to select relevant account from Accounts drop down window (P&L Account or Balance Sheet Account)

2. The scenarios (A and B) are about Payment Terms. It means how you pay to the supplier and follow scenario A or B accordingly
- If paid immediately (at the spot) then use option A
- if will be paid in future like 10 days, 50 days or 60 days etc then use scenario B


Return to “Functional Support”

Who is online

Users browsing this forum: No registered users and 5 guests

cron