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How to account for paying rent?

By
Gilles Lehoux
on 2/27/13, 6:19 PM 3,338 views

Where in the system would it make sense to account for paying rent on the offices, or the cleaning service? It seems inappropriate to generate a purchase order every month.

You don't need a PO. You just need an invoice. Go to Accounting -> Supplier Invoices -> Create a service. Set it to can be purchased, cannot be sold. Expenses - Cleaning Expense.

Damian Phang
on 2/8/14, 8:49 PM
1

michel Guénard

--michel Guénard--
1033
| 5 5 8
VIROFLAY, France
--michel Guénard--

VP operations & finance Social entrepreneur Certified Public Accountant Past Chief internal auditor

michel Guénard
On 2/27/13, 8:13 PM

As a rule, a contract is signed between the parties: owner and tenant; it states the amount of the periodical rent (month or other) plus additionnal expenses (cleaning, locales taxes etc)due by the tenant, usually at the beginning of the period. Once the rent is paid the owner issues a receipt for the various items plus VAT. On top of the rental amount, VAT may be applicable. This is a recurring transaction.

The tenant never issues an invoice to the owner.

The accounting entries are best recorded in the "Miscellaneous journal"

Debit the rental account (P/L) Debit the other expenses (P/L) Debit the deductible VAT account (B/S)
Credit the bank account (B/S)

The date for such accounting record is the date of the payment. Each month, you may duplicate the previous entry, then change the date, and modify the amounts if necessary.

The OpenErp menu to use is Accounting/accountig entries. I never heard of "virtual invoices". An invoice is a legal document. The supporting contract for your payments, plus the receipt from the landlord are enough to document the transactions.

I'm sure your description of the accounting for this is correct. Could you please include in your answer what functions to use and where to find them in the OpenERP menu structure? This would improve your answer and be helpful to me. BTW. I did not mean to suggest that we should issue an invoice to the landlord. I meant to say that we can acknowledge a virtual invoice from the landlord and then pay it.. Would this still be valid assuming the invoice was written to debit the right account?

Gilles Lehoux
on 2/27/13, 8:22 PM

The OpenErp menu to use is Accounting/accountig entries. I never heard of "virtual invoices". An invoice is a legal document. The supporting contract for your payments, plus the receipt from the landlord are enough to document the transactions.

AD LIBITOM, michel Guénard
on 2/27/13, 8:42 PM
0

Gilles Lehoux

--Gilles Lehoux--
877
| 5 4 7
St-Eustache, Canada
--Gilles Lehoux--


Gilles Lehoux
On 2/27/13, 6:20 PM

Go to Purchases / Invoice Control / On Draft Invoices Create an invoice matching the amount of the rent or the invoice from the cleaning service.

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Asked: 2/27/13, 6:19 PM
Seen: 3338 times
Last updated: 3/16/15, 8:10 AM