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Frequent Contributor *

security deposit

Here is my situation. 

I paid utility security deposit $500on October 2018 with first month Expense$20.  When I entered expense, I put $500 under category security deposit . and Utility Exp $20.  direct debit my checking account.

 

This March, I stop the service. they apply the $500 to my Final month invoice. That is $500-$20,  They send me a $480 check. 

 

How to enter this transaction. Thank you. security deposit 

Solved
Best answer 04-01-2019

Accepted Solutions
QuickBooks Team

Re: security deposit

Hi again, @JessicaZ.

 

Thanks for getting back to me and for providing some additional information. I'm here to help get this taken care of.

 

Since you want to pay the final bill using the security deposit, you can set up a clearing account and transfer the $20 from the security deposit. Here's how:

 

1. Go to the Gear icon, then pick Chart of Accounts under Your Company column.
2. Click New, then select Bank on the Account Type.
3. Enter Clearing account as the name, then Save and Close.

 

30.PNG

 

Transfer the $20 from the security deposit, here's how:

 

1. Go to the Plus icon, then pick Transfer under Other column.
2. Choose Security Deposit on the Transfer Funds From drop-down.
3. On the Transfer Funds To drop-down, pick the Clearing account you've set up.
4. Enter the amount, then Save and close.

 

31.PNG

 

After that, create a bill or expense to pay for the final month. Here's how:

 

1. Go back to Plus icon, then pick Bill or Expense under Vendors column.
2. Select the Payee, then on the Payment Account drop-down, choose the Clearing account.
3. On the Category details section, pick Utilities and enter the amount ($20), then Save and close.

 

32.PNG

 

Once done, you can post the refund using a Bank Deposit. Simply follow the steps I provided on my first response. This should zero out the security deposit and the clearing account. You can also consult your accountant if you need further assistance.

 

33.PNG

 

That should do it. Here's an additional article for future reference: Refund a security deposit.

 

Please let me know how it goes in the comment section. I'm only a few clicks away if you have any follow-up questions. Cheering you to continued success!

3 Comments
QuickBooks Team

Re: security deposit

Hey there, @JessicaZ.

 

It's nice to see you in the Community. I can help walk you through entering a security deposit refund in QuickBooks Online (QBO).

 

Since you entered the security deposit as an expense, you can post the refund using a Bank Deposit.

 

Here's how:

 

1. Go to the Plus icon at the top, then pick Bank Deposit under Other column.
2. Select your Checking Account on the Account drop-down, then go to the Add funds to this deposit section.
3. On the Received From column, choose where you paid the security deposit.
4. Choose the account you use when you enter the expense on the Account column, then you can type Security Deposit Refund as a description.
5. Enter the amount, then Save and close at the bottom.

 

That should help you enter the transaction. I also added a sample screenshot for your guide.

 

11.PNG

 

Please let me know how it goes or if I can be of further assistance by posting below. I'll be here to help you out. Take care always!
 

Frequent Contributor *

Re: security deposit

Thank you for your reply.  but how to enter the final bill which paid by  security deposit?   

 

Can I use supplier credit? 

 

I enter the deposit security with expense, but it should be long term asset. Is the other way to enter security deposit? 

 

QuickBooks Team

Re: security deposit

Hi again, @JessicaZ.

 

Thanks for getting back to me and for providing some additional information. I'm here to help get this taken care of.

 

Since you want to pay the final bill using the security deposit, you can set up a clearing account and transfer the $20 from the security deposit. Here's how:

 

1. Go to the Gear icon, then pick Chart of Accounts under Your Company column.
2. Click New, then select Bank on the Account Type.
3. Enter Clearing account as the name, then Save and Close.

 

30.PNG

 

Transfer the $20 from the security deposit, here's how:

 

1. Go to the Plus icon, then pick Transfer under Other column.
2. Choose Security Deposit on the Transfer Funds From drop-down.
3. On the Transfer Funds To drop-down, pick the Clearing account you've set up.
4. Enter the amount, then Save and close.

 

31.PNG

 

After that, create a bill or expense to pay for the final month. Here's how:

 

1. Go back to Plus icon, then pick Bill or Expense under Vendors column.
2. Select the Payee, then on the Payment Account drop-down, choose the Clearing account.
3. On the Category details section, pick Utilities and enter the amount ($20), then Save and close.

 

32.PNG

 

Once done, you can post the refund using a Bank Deposit. Simply follow the steps I provided on my first response. This should zero out the security deposit and the clearing account. You can also consult your accountant if you need further assistance.

 

33.PNG

 

That should do it. Here's an additional article for future reference: Refund a security deposit.

 

Please let me know how it goes in the comment section. I'm only a few clicks away if you have any follow-up questions. Cheering you to continued success!