To add Rental Income from Properties owned by your Superannuation Fund,
- Select the INCOME tab and click the ADD INCOME button.
- Select the Account —Fund, or a Member Account if the income is from a segregated asset.
- In the Select Asset field, select the property for which you wish to record a rent receipt.
- When you select a Property in the Select Asset Field, Mclowd displays:
- The only Income Type permitted is Rent.
- In the Add to Account field, select the bank or receivable account into which the rental income is deposited.
- Enter the Date the rent was deposited.
- Enter the Amount of rent received.
NOTE: There may have been deductions from the rent for agent fees, repairs and maintenance arranged by the agent, etc.
There are multiple options for handling this situation:
- You could enter the Gross Rent here, and then enter the deductions as Expenses paid from the same Bank Account. This will cause a number of entries to appear in the Bank Account records that didn’t actually occur and don’t match up with bank statements. However, the final balance will be correct. See EXAMPLE 1 below.
- You could enter the Net Rent here, thus only causing the actual amount received to show in the Bank records, and then enter the deductions through a Journal, showing the income to the Rent account and the deductions to the relevant Expense accounts. See EXAMPLE 2 below.
Click SAVE INCOME.
A statement from your agent shows:
|Gross Rent received from tenant||
|Repairs – kitchen tap||
|Maintenance – annual termite treatment||
|Bank transaction fee||
|Net Receipt deposited to client account||
EXAMPLE 1: Post Gross income ($1200)
Go to Expenses and enter the deducted amounts.
Take care to ensure you select the same bank or receivable account and date as you used for the initial income entry.
Choose Expense Account 5-1150 for each expense. Mclowd then allows you to categorize the expense as:
CAUTION: Do not allocate expenses that can be capitalized (acquisition costs, property improvements, new buildings or additions, etc.) to account 5-1150 Other Expenses. This account is for operating expenses only. Expenses to be capitalized and depreciation should be allocated to 1-1170-nn accounts.
Select the property in the For Asset field to record the expense as a cost of this investment.
Continue entering expenses until all deductions are recorded.
Your bank transaction report now shows:
Although the listed expenses won’t show on your bank statement, the statement will show the net deposit of $922 and the final balance will be correct.
EXAMPLE 2: Post NET income actually received ($922.00)
Go to Journal Entries (on the Settings menu) and enter the deducted expenses.
NOTE: This method does not allow the detailed categorization that Example 1 permits.
Your Accounting reports now show the correct expense total:
And the correct Income total:
And your bank transactions report shows the same entry as your bank statement: