When a property has been sold, there are four sections that need to be updated:
- Record the date of the sale and the amount
- Record any income received
- Close the mortgage (if there was one)
Record the date of the sale and the amount
In Property Manager > Properties > click on the property > Edit Property and record the date and amount under Selling Details.
Record any income received
Before you start, go to Settings > Chart of Accounts > Edit Mispostings account and tick the box called Allow Payments From/To Account.
Go to Property Manager > Income and record the total value of the sale. Set the Income Item to Property Sale which will write the income to the Fixed Assets account.
Record the amount that has been paid to your bank account as a payment to your bank account. For any portion of the sale amount that has been deducted to cover fees or repay a mortgage, record a payment to the Mispostings Account.
For any fees, enter these into Property Manager > Expenses > Add Expense. Set the expense to the Property Selling Costs account.
The Cost Type should be Property Selling Costs for anything you want to have appear on the Capital Gains report.
If the fees have been deducted from the sale amount, record the payment from the Mispostings account. If the fees have been paid directly, record a payment from your bank account.
Close the mortgage
Go to Finance Manager > Mortgages/Loans > click on the mortgage and click Close Mortgage at the bottom of the screen. Enter the date that the mortgage closed and select Capital Repayment and select the account that the money came from to pay off the mortgage. If the money came from the solicitor, select Mispostings.