I am using Quickbooks 2011 Pro. I want to bill my tenants ahead each month for a utility (water) that itself bills once a quarter in arrears. When the water bill arrives, I want to make the next month's billing adjust for the over or under.

For example, in January, February and March I bill my tenant $75. In April, I get the water bill for the first quarter and it is $250. So in April I bill the tenant $100 ($75 for April and $25 for the under payment on the first quarter). Then in May and June I bill $75 again such that at the end of the 2nd quarter they once again have a $225 credit towards the bill when it comes in July.

What's the best way to handle this in Quickbooks? I have been creating $75 invoices each month and the tenant has been paying them, so their account balance is always zero. But now that I have the water bill, how do I bill them? They have already paid most of it. So its like their payments need to go against this bill now and not the previous three bills that they applied to originally.

I suppose I could apply the 3 old payments to this new bill and delete the old invoices. But that seems awkward. I'm guessing there's a better way.

  • 2
    This sounds more like you are running a business, and so I think it is off-topic for personal finance. You may want to check out the FAQ at money.stackexchange.com/faq Feel free to comment if you disagree, though! Jan 20 '13 at 17:06
  • 3
    I think depending on the how small the small business is the line gets kind of gray. There is a transition from personal only to business only. It is not a solid line. For instance, the handful of rental properties that I own and must account well for on the weekends in my spare time is an extension of my personal finance that is totally consistent with the FAQ's description "Stack Exchange is for people who want to be financially literate, find ways to save money, minimize taxes, invest wisely, plan for retirement, etc.". It's not full time job for me or anyone else.
    – user673
    Jan 20 '13 at 17:16
  • 1
    account receivable, account payable, escrow accounts - set them all up and use them, don't see what's the complication.
    – littleadv
    Jan 20 '13 at 19:50
  • The complication is, I am not an accountant or a Quickbooks expert, so I don't really know how to take the accounts you mention littleadv and make them work. I'll figure it out eventually and come back and post a clear step-by-step solution in case someone else has a similar problem.
    – user673
    Jan 28 '13 at 12:17
  • @user673 any luck? Unfortunately I don't have a Quickbooks setup, I use GnuCash, so I was hoping you'd come back with that promised answer...
    – littleadv
    Mar 2 '14 at 4:25

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