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Re: Recording tenant security deposit payments received

Thank you for providing me with so much detail, bhtproperty.

 

I can help you tag this transaction in QuickBooks Online.

 

You're on the right track with creating a security deposit. Yes, the funds should be treated as a liability to show that it doesn’t belong to you until it’s used to pay for services.

 

First, let's create a liability account to track the amount of security deposits. Let me show you how:

  1. Select Accounting on the left pane, then choose Chart of Accounts.
  2. Click New.
  3. Choose Other Current Liabilities from the Account Type drop-down list.
  4. Select Trust Accounts - Liabilities under the Detail Type drop-down.
  5. Enter a name for the account (for example, Trust Liabilities) or accept the suggested name.
  6. Click Save and close.

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Next, create a service item that you can use when recording security deposits. Here's how:

  1. Click the Gear icon and choose Products and Services.
  2. Select New.
  3. Choose Service from the Product/Service Information.
  4. Enter a name for the service item.
  5. From the Income Account drop-down, choose Trust Liability Account.
  6. Click Save and close.

 

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When refunding a security deposit, you must first issue a check for the portion to be refunded.

 

Here's how:

  1. Click the Plus icon (+) and select Check.
  2. Enter the check information.
  3. In the Account details section, select the liability account you use for security deposits from the Account column drop-down list.
  4. Select Save and close.

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Here are some articles for the complete details about security deposits:

The information above should help you with the security deposits. I'm happy to help some more if you have other questions in QuickBooks. Enjoy your day.