For Landlord –– How to issue e-Invoice for rental & utility charges (when tenant pays utility directly)?

Scenario:

You are a landlord and a registered business owner. 

Your tenant is renting your property, and the utility example electricity bill is under your name. 

However, the tenant pays the electricity charges directly to TNB.
 

How to issue the rental and TNB charges to the tenant?
 

Solution:

1. In Sales Invoice, issue the rental as usual. Notice that the classification   

Click here for ‘How to Create a Rental in Stock Maintenance for E-Invoice Submission’

2. For the utility charges, select the item code as ‘Contra-TNB’.
For account setup details, see the Remark section below

Notice that the classification is 006 (Disbursement) and the posting we will post it to a contra account

3. Then submit e-Invoice 
 

 4. Create a Credit Notes and select ‘Contra-TNB’ account. For this time, no need to submit e-Invoice 

5. If you check Account Inquiry of ‘Contra-TNB’ account -  The amount is 0.00 now 

Practical Recommendations:

• Clearly define in the tenancy agreement the responsibility for rental and electricity charges.
• Retain copies of electricity bills and payment proof for audit or verification purposes.
• If the landlord actually collects and pays the electricity charges on behalf of the tenant, the amount can still be classified as a Disbursement, but the payment flow must be clearly documented.

Remark:

A - Create contra account in Chart of Account under Expenses

B - Stocks > Account Preset > Create CONTRA -TNB code, the Sales & Purchase Account select as the expenses account created just now 

C – Stock Items, create the Stock code for ‘CONTRA-TNB’

• Unticked Stock Control
• Preset Code select as ‘CONTRA-TNB’
• Classification (Sales) select as 006  

Refer attachment for PDF file