Mark up an invoice

This example has you paying your painter $100 and assumes a 15% markup to the Owner:

1. You need to create a GL account called Markup (or similar). I should NOT be an Income or Expense account. We recommend a Liabilities account.
2. Open Payments screen.
3. Select the painter/vendor and using the regular expense account, input $115.
4. On the next line choose the liabilities account you created in step 1.
5. Enter -$15.

This completes Part 1 and you now have the following:

• The Income Statement will show Rent Income minus the expense of $115 minus your regular Management Fee.
• Your balance sheet will show the $15 accumulated in the liabilities account – this represents all the markups you have collected and remaining in the bank account

To pull the money out (i.e. to pay yourself):

1. Open Payments screen.
2. Select your PM vendor and select the Liabilities account created in step 1 above.
3. Enter the amount you are pulling out to clear out the GL – it will be reflected in the Balance Sheet and never on the Income Statement (just as it should be).

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