Sublet and refunds

Markde

Hello

I have a client who has taken a lease out on a large property and has sublet portions of the space to other people to reduce her own rental expense. This is not her core business, just a way to manage the rent expense.

I want to know the best way to capture this income. I see there is a "Refund for expense" category which seems correct but in reading online it looks like I may need to invoice each person for their portion. If this is the case how do I handle this?

Thanks

Mark

Alexia

Hi, @Markde.

It would still have to be counted as income. You might have to create a new income category, but if that money is going into the business' pockets before offsetting rent, it has to be accounted as income. You don't have to create an invoice for it, however. You could just create an income transaction categorized to "Sublet income" whenever that money comes in.