Overview
As a property manager, you may want to charge owners more than what you paid a vendor for services or repairs. This difference is called a “markup” and represents your profit margin on the transaction.
To properly account for this in Mi Property Portal, you’ll need to complete two simple steps: create a bill and then create an owner invoice.
Why Two Steps?
You might wonder: “Why can’t I just add the markup directly to the bill?”
Here’s why:
- Bills are tied to vendors and represent money you owe (expenses)
- Invoices are tied to owners/clients and represent money they owe you (income)
- A single transaction can’t be both an expense AND income at the same time
By keeping them separate, your financial reports (like your Profit & Loss statement) will accurately show:
- What you spent (expense)
- What you earned (income)
- Your profit (the markup)
Real-World Example
Let’s say you hire a plumber to fix a leaky faucet at one of your managed properties:
Scenario:
- Plumber’s invoice: $500
- Your markup: 20%
- Amount you’ll charge the owner: $600
What shows in your P&L:
- Expense (Cost): $500
- Income (Revenue): $600
- Profit: $100
Step-by-Step Instructions
Step 1: Create the Bill (0% Reimbursable)
- Go to Bills → Create New Bill
- Select the Vendor (e.g., ABC Plumbing)
- Enter the amount (e.g., $500)
- Set Reimbursable to 0%
- This marks the expense as YOUR expense, not a pass-through to the owner
- Assign it to the Property
- Add a description (e.g., “Leaky faucet repair – Kitchen”)
- Save the Bill
Why 0% Reimbursable?
- If you set it to 100% reimbursable, it means you’re just passing the cost through with no markup
- Setting it to 0% means this is YOUR cost, which you’ll mark up when invoicing the owner
Step 2: Create the Owner Invoice (With Markup)
- Go to Invoices → Create New Invoice
- Select the Owner as the customer
- Enter the marked-up amount (e.g., $600)
- Add a description (e.g., “Plumbing repair – Kitchen faucet”)
- Assign it to the same Property
- Save and Send the invoice to the owner
What This Looks Like in Your Reports
Your Profit & Loss Statement will show:
| Category | Amount |
|---|---|
| Income | |
| Owner Invoice | $600 |
| Expenses | |
| Plumbing Bill | ($500) |
| Net Profit | $100 |
This gives you a clear picture of your markup revenue and ensures accurate financial reporting.
Quick Tips
✅ Always use 0% reimbursable for bills you plan to mark up
✅ Use consistent descriptions on both the bill and invoice for easy tracking
✅ Link both to the same property for accurate property-level reporting
✅ Keep vendor bills and owner invoices in the same accounting period for clean reporting
Common Questions
Q: What if I only want to mark up part of a bill?
A: You can split line items on the bill – mark some as 100% reimbursable (no markup) and others as 0% reimbursable (with markup).
Q: Can I see all my markup revenue in one report?
A: Yes! Run a Property and Loss report or Bill Markup Report.