For example if rent is £550 but we only receive £500 from the tenant, the steps below will show you how to pay the landlord the full £550 (minus management fee) and show the tenant owes £50 on their account.
There are a few ways, and your desired option will depend on how you want the transactions to appear on the landlord statement.
Method 1:
1. Take a payment for £500 leaving £50 remaining but make sure that you tick the checkbox at the top to not apply the management fee charge (as we will be manually creating applying this the management fee).
Since at this time £50 remains as owed by the tenant, the management fee for this amount will not be charged, therefore, you will need to charge the management fee manually.
2. Go to "apply a charge" > select the related tenancy, the income account for the management fee and the full amount is usually charged when the tenant makes a full rent payment > then press apply charge. This will charge the full management fee for this month meaning you get your full pay regardless if the tenant pays the whole rent.
3. Pay the landlord the exact amount you wish to pay them.
Go to make a payment > enter the information and click pay.
4. Once you collect the £50 (e.g. at a later date), you need to "take a payment" for the remaining amount and uncheck the box so that the management fee will not be applied (or the management fee will be applied twice!).
5. You will see that there is -£50 on the statement balance. To clear this balance you will have to make a payment to landlord for the rest of the rent that the tenant paid on the later date.
Make a payment > enter the figure for the rest of the rent > click pay
Doing so will do the following:
1. RECEIVED
£500 partial rent
2. DEDUCTIONS
£27.5 + VAT (charge full management fee as usual)
3. PAYMENTS
Pay the landlord £467 (the portion of rent that was received minus the deductions)
4. RECEIVED
£50 partial rent (the rest of the rent payment)
5. PAYMENTS
Pay the landlord £50 for the rest of the rent that was received
IMPORTANT NOTE: If you wish to pay the landlord more than you have collected from the tenant (out of your pocket for example), be sure that there is money in the client account... or you will be paying it from someone else's money.
So... to combat this, the following 2 options can be done:
a) Go to accounts and click on "transfer funds" to transfer money from your business operating bank account to the client account. This will prevent you from taking it out of your client account when it isn't there.
b) When paying the landlord, pay £500 from the client account, and then make another transaction of £50 (the difference that you're paying from your pocket) that will come from your business operating bank. Doing do will show 2 transactions in the PAYMENTS section of the statement.