I have been using Manager for over a year and love it. I have purchased rental investment property and am managing same. With each purchase in the US, we receive a HUD statement. It is a common form that recognizes all cash flows related to the transaction between seller and buyer. There is information in there to identify basis of the fixed asset (like sales price), expenses (like insurance), reductions in basis (like seller concessions, prorated rents and taxes), liabilities (new loan), and spending or receiving money. All my previous transactions were journal entries with cash to/from the bank as one line in the entry. My problem…should I use the spend/receive money tabs in bank account? how would I record the basis of a fixed asset in the same entry? Thanks for your help
Several months ago, the ability to enter bank and cash transactions via journal entries was eliminated. Those must now all be done in Bank Accounts and Cash Accounts tabs. Accounting effects are the same, but additional features are now integrated.
To learn about recording the basis of a fixed asset, see Manager Cloud.
Thanks Tut for the quick response and link to the section of the guide that covers this. I think I understand how to use the receive money tab under the bank account. Maybe this transaction is unusual (buyer of fixed asset receiving money) as all fixed assets entries are negative. Maybe I should have used spend money and have the spend total come out negative. any thoughts?
I am not sure I follow exactly what you are trying to do. Nor do I completely understand your question. But here is some general guidance:
Normally, when entering spend or receive money transactions, make the entries as positive numbers. Manager automatically converts to negative where necessary based on the account type you are spending or receiving from or to.
Virtually any transaction in Manager can have multiple line entries for various items. Just click on the Add Line dropdown arrow. One limitation, however, is that the entries must all be from or to the same payer or payee. Another is that they must all be the same transaction type, such spending or receiving.
So, for your HUD statement, which summarizes amounts paid to and received from various parties, you might need several Spend Money or Receive Money transactions, only one line of which would actually be the fixed asset basis. Pro-rated taxes, for example, might be paid to some taxing authority or reimbursed to the seller for taxes already paid in advance. Likewise, utilities might be pro-rated. The important thing would be that only those elements contributing to the depreciable basis of the property would be entered as the fixed asset cost. Other expenses should be allocated as what they are.
Hope that helps.
This is not hard rule. I mean, after all, Spend money and Receive money transactions are just glorified journal entries.