Hello - I am confused about the correct method to posting CERS.
Some source says to use
Dr. AR
Cr. Property Related Expense(s)
Or
Cr. CERS (Income)
Other sources says to use
Subsidy Other (Income)
Rent Subsidy (expense)
Which is correct?
Hello - I am confused about the correct method to posting CERS.
Some source says to use
Dr. AR
Cr. Property Related Expense(s)
Or
Cr. CERS (Income)
Other sources says to use
Subsidy Other (Income)
Rent Subsidy (expense)
Which is correct?
CERS is a type of revenue. I enter is as a receivable from the government and post is to a revenue account (ie. subsidy revenue, other revenue). At year end, your accountant may, or may not, debit the revenue account and credit and rent expense account. Hope that helps
Thank you for your reply.
Meaning these CERS deposit amounts should never be shown anywhere near or under an Income GL account.
Therefore if I understod correctly, these amounts must be first posted in account payable, similar to clients/patients, giving it a meaningful name like {Gov Subsity - CERS} - correct?
You have that all wrong. Just to confirm, we are talking about the Canada Emergency Rent Subsidy (CERS)? If yes, the amount is posted as a receivable, not a payable (unless you are paying the government) and it should be posted to an income account.
*Community Hub is the new name for Sage City