credit customer from liability account?

Hi there, @roguerose.

Thank you for posting here in the Community. It would be my pleasure to walk you through the steps on how to apply the security deposit payment to your customer balance in QuickBooks Desktop. 

Let's create a credit memo to link the open balance to your customer from the Customer Center section. 

Here's how:

1. Select Create Credit Memos/Refund under Customers.
2. Choose the tenant's name on Customer drop-down.
3. Under Item drop-down, choose the Other Current Liability and enter the amount. 
4. Click Save and close. 

      5. Pick Apply to an invoice, then hit OK.

      6. Select the credit you want to apply automatically and hit Done.

For the detailed guide about the process, check out this article: Give your customer credit or refund in QuickBooks Desktop for Windows.

You can always run a report which shows the history of the transactions. Simply press Ctrl + H in the credit memo page, and click View history for the invoice section. See the sample screenshot below.  

Please let me know in the comment if you have any other issues or concerns. I'm more than happy to assist. Have a great day!