What is the accounting entry of property management fee?

Property management expenses incurred in daily life can be included in the accounting of prepayments, and included in the management expenses when sharing. How to make relevant accounting entries?

Accounting entry of property management fee

1. Prepaid property fee:

Borrow: advance payment-property management fee

Credit: cash on hand/bank deposit.

Prepaid account-property fee

2. When making payment:

Borrow: management fee-property management fee

Credit: cash on hand/bank deposit.

3. When sharing:

Borrow: management fee-property fee

Loan: advance payment-property fee

Receive accounting entries related to property fees.

This is divided into two situations, one is a property management company specializing in property management, and the other is an ordinary company or individual industrial and commercial households.

1. If it is a property management company, it should be reflected by its main business income, because the property management company itself manages the property, which is their main business scope, and collecting property fees is their main business income. So the accounting entries should be:

Borrow: bank deposit (or cash on hand)

Loan: income from main business

2. The property fees paid by enterprises (or individual industrial and commercial households) shall be recorded as the property fees of office buildings and shall be recorded as the period fees; The property cost of the production workshop should be included in the manufacturing cost. Accounting entries:

If it is used as a production workshop, it shall be included in the production cost, and if it is used for business, it shall be included in the period cost.

Borrow: management expenses (or sales expenses, manufacturing expenses and other subjects)-property expenses.

Loan: bank deposit (or cash on hand)