Recording Lease Payments

[templebaptistoffice@gmail.com]

I am using the online version of PCPLUS 11.55.

The church has signed an agreement to lease one of the buildings to a local school beginning in August. They have paid the deposit and first month's rent. I was planning to record the payment using Fund Accounting as follows:

DB Checking $.XX
CR Bldg Lease $.XX (Non-Contribution Income)

Is this the best way to do this?

I was also planning to setup an invoice in the Accounts Receivable module once they are occupying the space.

Any help/suggestions would be appreciated.

Thanks,
Karin Watson
Office Manager

[NeilZ]

I am using the online version of PCPLUS 11.55.

The church has signed an agreement to lease one of the buildings to a local school beginning in August. They have paid the deposit and first month's rent. I was planning to record the payment using Fund Accounting as follows:

DB Checking $.XX
CR Bldg Lease $.XX (Non-Contribution Income)

Is this the best way to do this?

I was also planning to setup an invoice in the Accounts Receivable module once they are occupying the space.

Any help/suggestions would be appreciated.

Thanks,
Karin Watson
Office Manager

FWIW ... that looks correct for the rental, I'm assuming that its a 4000- series income account. We use 4600- for miscellaneous (non-contribution) income, with 4610- as building rental (hall use, etc). When you setup the AR repeating invoice, just use the same Income Account.

However, the Deposit should be treated as a liability if the lease stipulates that part or all of the deposit is to be returned after any inspection or repairs. It really cannot be classified as income unless part of it is used for any repair/maintenance following the end of the rental/lease; at which time the portion to be returned will be written as a check from the liability account, and the remaining funds then moved to rental income.