Experienced Member

Recording tenant security deposit payments received

We import all bank activities into QB directly so we can easily tag each transaction.

 

Tenant Security Deposit payments are deposited to a separate bank account only used to hold security deposits (our state law).  So when they are refunded, we have to then transfer this amount to the Operating Account to refund the tenant.

 

1) Under what category would I initially tag each tenant’s security deposit payment in QB online?  I know it would technically be a current liability, but the transaction comes from a bank (which is typically an asset).

 

2) When I issue a security deposit refund, I have to literally transfer the money from the Sec Dep account to the Operating acct to then issue a refund to the tenant.

 

How do I tag this transaction in the Sec Deposit bank account?  

How do I tag this transaction in the Operating acct?

 

Help?