and now we will learn how to track profit and loss by Tennant if you have any questions about
this topic you can leave them in the comment section below and I'll do my best to help you
and of course if you feel the video helped you I hope you will click like and don't forget to
subscribe to get updates on new videos that come out all the time the write checks window is the
place to record expenses as you pay them it's very simple to put in check information what will
happen in the trial balance when we pay an expense well whatever expense we're paying is going to go
up at the moment that we pay it and of course if we pay from the bank account cash and bank
goes down so that will be the effect that you will see in the trial balance when we record our first
check however the profit and loss by tenant will actually change if you attribute that expense to
a specific tenant so you may remember that we already set up a report to show us the profit
and loss by tenant and when we click here to open it up you can see that it remembers we wanted all
dates and if you scroll from left to right you can see the income and expense for each tenant
notice this line here where the mouse is pointing to where the line gets thicker that means when you
scroll the row headings will stay in the same place you just scroll to the right to see the
different tenants and their numbers as they relate to the headings on the left so you can see the
rental income earned for Allen is four thousand the amount earned that is the amount earned from
Betty is only two thousand we actually earned more but we haven't recorded those invoices for kandi
it was two thousand we can scroll forward ok for Dave Dini it was two thousand and can and so forth
that's because we only recorded you know a couple of months but notice income from late fees there's
$50 that we earned from Betty as income from late fees and there's $100 that we earned from
Dave Dini as income from late fees so the total income from Dave is 2,100 now you'll notice it's
only listing the income items up here because so far in this course we've only had income items but
once we start recording expenses that are specific to a tenant you'll see those expenses listed here
and then you'll know your true profit and loss by tenant so for example let's imagine on March
15th we paycheck number 1 for $200 to Staples for supplies that specifically relate to apartment 1a
where Alan resides now we're not billing Alan Alan's balance does not change because we are
not making Alan responsible for this money in this particular example but the profit and loss
by tenant will change so we can see that this is an expense that still relates to him and of course
the trial balance changes for every transaction that we do so how do we record this March 15th
check to Staples for supplies well we have to click expenses and actually we don't clip in
then we could click expenses here but it would actually be better for you to enter these things
if you're physically writing a check to click the plus sign and to notice if the column all
the way to the left is for customers then the second column is for vendors and then you can
click check now the computer assumes the first check is check number one you can change this
to whatever the physical check number is on the check that you're actually mailing out you're just
recording it here in QuickBooks now it's coming from this bank account and we said we are paying
staples and the day that we're paying staples I believe it said March 15th so we'll make sure
that we're in March 15th of 2019 and the category is the expense so click directly under the word
category to bring the pull down arrow then click the pull down arrow and scroll down to supplies
expense in our case supplies are written off as expenses as soon as they're purchased and I
believe the amount was $200 click here for $200 there we go now you will not check the billable
box the billable box you will only check if you are making the customer responsible you're not
making the tenant responsible but you still want to know which tenant this applies to so where it
says customer click the pull down arrow and choose a one specifically specifically Allen RB so you're
paying $200 for supplies for the apartment of Allen RV and that's the first expense that we're
recording in QuickBooks and this is the physical check number that you're signing and sending in
the mail to Staples click Save and close and now let's go back to reports and let's go to profit
and loss by tenant and you can see for Allen even though you earned four thousand dollars of income
from rental income Allen's apartment costs you $200 in supplies so you really only have three
thousand eight hundred dollars in profit from that specific apartment you should also notice
that if you click reports trial balance all you can see that supplies expense shows up as
a general expense for the company as well and no matter which apartment you pay and expense for it
will also show up in total for everyone here on the trial balance now as usual will solidify this
with a second example let's imagine on March 16th we paycheck number two for $300 to rex repair for
apartment 4d where dave Deenie resides now we're not billing dave we're not making him
responsible for the money and were not yet adding it to his balance all we're doing is his balance
won't change even though we still want to know which apartment this repair was associated with
so it'll affect the profit and loss by tenant and it will affect the trial balance so let's take a
look we again go to the plus sign here go to the second column and the second choice down is check
now QuickBooks assumes it's checked number two and again you could put whatever number you want and
then the very next time you open the window it'll put the next consecutive number in this case the
payee is rex repair rex repair and of course the date is march 16th that we wrote him the check
and the category click under category to bring the arrow click the pull down arrow to choose
the expense in this case it's repair expense the amount is 300 push the tab key on your keyboard to
save the field without losing the whole window now make sure you remove the checkmark make sure that
there's no check mark where it says billable and we're going to attribute this to Dave Dini even
though we're not billing him and increasing his balance yet so let's just click Save and close
and if you look at the trial balance you can see repair expense shows up for the first time is 300
and these two checks just decrease the cash in bank look I double click the balance of cash and
bank and you can see that what we received from the tenants were positive but you can see these
last two checks for expenses were negative and of course we can click expense and then we can
go excuse me we can click reports and then we can go to the profit and loss by tenant and we can see
that if you go across to Dave Dini even though we are in 2100 we earned maybe we didn't collect but
even though we earn $2,100 from Dave Dini we still lost $300 for repairs for his apartment so so far
the real profit and loss from that apartment is $1,800 and in closing let's just double-check
that the tenants balances have not changed at all for these expenses reports tenant balance
detail look Allen's balance nothing was recorded against Alan's balance for this and the same thing
for Dave Dini I have to open Dave Dede nothing for Dave Dini was recorded just a late fee but we did
not record the repair against Dave Dinis balance that we will learn in the following video you