How to record tenants security deposit?

I'd be happy to outline the steps below so you can record your tenant's rent deposit in your QuickBooks Online (QBO) account, @usertshirts.

In QBO you can create a security deposit account to record it in your chart of accounts, here's how:

1. Go to Settings and choose  Chart of Accounts.
2. Hit New to create a new account.
3. In the Account window, click the Account Type ▼ dropdown. Then choose an account type.
4. Note: if you see the New category window instead of the Account window, you’re creating a subaccount under a premade parent account. If you need to create a new account type, switch to accountant view.
5. In the Detail Type ▼ dropdown, select the accounts receivable (A/R) as detail type to fit with the transactions you want to track.
6. Give your new account a name. Tip: Use the detail type description to create a name that describes what you're tracking.
7. Add a description.
8. When you're done, tap Save and Close.

You can also visit this article if you like a visual step-by-step guide on how to add an account in your COA: Add an account to your chart of accounts in QuickBooks Online.

Once you're all set, you can proceed to record the security rent deposit that you received from your tenant. You can refer to this article for the steps to record deposits: Record and make bank deposits in QuickBooks Online.

If you're unsure about the steps that I've mentioned above, you can also consult your accountant. This way, they can guide you on recording your deposits in QBO.

Additionally, I'll be also leaving these handy articles for future reference:

• Categorize and match online bank transactions in QuickBooks Online.
• Handle a customer credit or overpayment in QuickBooks Online.

Please post again here If you have any other concerns about recording deposits in QBO. I'm just around the corner and ready to help. Have a good day ahead.

@usertshirts 

Set up an other current liability account called 'Security Deposits'.  Then, set up a service item called 'Security Deposits' and select the newly-created 'Security Deposits' liability account under Income account in the item set-up.  Then, create an invoice or sales receipt for your tenant and add the Security Deposit item and enter the amount.  That will book the security deposit as a liability and not income.  The only caveat is that if a security deposit is an advance payment of rent (if the deposit is for the last month's rent, for example), then it is considered income when received, not a liability.

Thank you so much