Customer deposit

Let's make sure you'll be able to record the deposit, ACBS03.

Normally, if you post security deposits you receive to the liability account when you have to refund part of a security deposit. You'll want to issue a cheque for the portion to be refunded, and record an invoice for the remaining amount. To do this, follow the detailed steps below: 

To write a cheque: 

1. Select + New.
2. Under Suppliers, select Cheque.
3. Enter the check information.
4. In the Category details section, select the liability account you use for security deposits from the Category column drop-down list.
5. Click Save and close.

To create a product or service item to use on the invoice:

1. Click the Gear :gear:icon.
2. Under Lists, select Products and Services.
3. Select New.
4. From the Product/Service information panel, select the appropriate type of item to create.
5. Enter the product or service information for the item.
6. Select Save and Close.

Then, use the product or service items you created to enter an invoice for the portion of the deposit you are not returning. Next, create an invoice. Here's how: 

1. Select + New.
2. Under Customers, choose Invoice.
3. Select the item you created from the drop-down list in the Product/Service field.
4. Enter the amount of the portion of the deposit you are not returning in the Amount field.
5. Click Save and close.

After that, enter a credit memo for the amount that isn't being refunded: 

1. Select + New.
2. Under Customers, select Credit Note.
3. Select the item you created from the drop-down list in the Product/Service field.
4. Enter the amount that is not being returned to the tenant in the Amount field.
5. Click Save and close.

Lastly, you can now apply the credit to the invoice:

1. Select + New.
2. Under Customers, choose Receive Payment.
3. Verify that the credit and invoice are both selected and that the amounts are equal.
4. If you don't see the credit and the invoice, they have been automatically applied, and you can select Cancel to skip this part of the process. 
5. Click Save and close.

Once done with the process, the tenant and the liability account both now have a zero balance. 

For more information about matching transactions you've already entered in QuickBooks, check out this article for your guide: Categorise And Match Online Bank Transactions In QuickBooks Online.

Let me know if you have any questions about the customer's security deposit. I'll be here to help.