Yes it is a Receipt.
It’s the result of the contractual obligations between the property owner and the management company. The management company when contracted as the property owner’s agent has the legal relationship with the Suppliers, not the property owner.
The management company engages a Glazier to repair a window. The management company enters into a contract with Supplier and carries all the legal responsibilities related to that contract. The property owner is not a party to that contract, therefore has no Supplier relationship. If the management company fails to pay the Glazier, then their legal recourse is against the management company not the property owner.
If the management company has deducted that window repair against the rental income, then the property owner is entitled to claim that expense even though the Glazier remains unpaid as they have “paid” the management company, as their receipt has been reduced by it…
The property owner’s tax return is created based upon the management company’s property income statements, not upon the status of Supplier transactions within the management company’s own accounts, which are outside the property owner’s control.
Take Expense Claims, the employer reimburses the employee for costs incurred on behalf of the business. The business used by the employee doesn’t become a supplier of the employer nor does the employer have any legal relationship with that business. Therefore, when a property owner reimburses the management company for costs in relation to the property, via the receipt deduction, the property owner is not creating a legal relationship with the Supplier.
Legal contractual obligations are at the top of the tree, accounting is nothing more, repeat, nothing more, than the recording of the financial transactions that have occur under those various legal contractual obligations. Cross purposing those legal obligations to achieve some artificial accounting outcome is quite frankly wrong.
As an aside, it is disturbing to note the number of “accountants” who don’t understand the differential between GST/VAT transactions and accounting transactions. To put it plainly and bluntly - GST/VAT is nothing more then a levy (tax) on qualifying SUPPLY and that is what is reported. It has nothing to do with ACCOUNTING sales and expenses. SUPPLY can either be a Balance Sheet transaction or a Profit & Loss transaction.
What government reporting requires is GST/VAT Sales and the offsetting GST/VAT Purchases.
It does not require reporting