Hmmm... That's a tricky one! I think I would enter the rent as fully paid, then put in a payment from the landlord for the $2,000 (or rent -$2,000), referencing the original invoice for the floor and the rent payment.

Thanks Jenn!

With regards to the posted invoice for flooring any idea what entry I would make to apply against it though to get it out of the payables?  The company has paid the other $2000 so it still shows $2000 outstanding.  Sorry I am a bit lost here.

Morning Jenn.....you should be able to do all the entries you require between AP/Bank  You will have your payable going into an expense account for the flooring for the 4000 doing it through AP and it will credit your bank account.  You will have a payable for your rent of 500 that will go through your rent expenses and the bank. You will pay the full 4000 from the company through the AP System.  The only deduction is your rent amount so the difference between the 2500 rent and what you are actually paying for rent of 500 is  your 2000.  I hope I didn't make that sound more difficult!

Hi Marg, thank you for your answer - I have read your explanation over and over and am still a bit confused.  Can you explain a little clearer with journal entries perhaps.  I am just not understanding the way you have worded it.  

Hi, although I am not an expert, I have experience with working with wonky transactions such as this. 

Since the landlord paid for ½ of the floor directly, I would leave the rent alone - put in the full amount of $2,500.

In the A/P Journal, make an invoice for the flooring for $4,000, and on a 2nd line, have -$2,000 go into your rental expense account. Make a note on the 3rd line that the landlord paid for half of the flooring directly.

That should leave you with a $2,000 balance on the flooring invoice, on which you can input your payment details.

I hope that clears things up for you!

Edit: I reread your question and I probably misunderstood.

Your company paid for the full cost of the floor, correct? 

In that case, leave the flooring invoice/payment alone, but note the invoice number.

In the A/P Journal for your rent payment, on the 2nd line put in your -$2,000 as reimbursement for the floor to the rent expense account. 

Put in a note referencing the invoice number for the floor (can be done on the 3rd line description box). You can also put in a signifier in your invoice number for the rent (like maybe LR for Landlord Reimbursement) or whatever you will recognize when a report is printed.

Sorry for the confusion. I hope this clears it up.

Hi Jenn,  YES this helped me understand how to post this correctly so it shows what happened.

Thank you sooooo much!!!!

You're welcome! Glad I could help ️

Hi sbdakota, happy to see that the community helped you figure out a solution . If the above suggested answer helped, please do mark it as verified  for the benefit of others in this forum :). Thank you!

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