Lease Deposit

Hello there.

I'll help you record the lease deposit in QuickBooks Desktop.

You need to create a bill credit for the amount.

Here's how:

1. From the Vendors menu, hit Enter Bills.
2. Choose the Credit Ratio button to account for the return of goods.
3. Type the Vendor name.
4. Select the Expenses tab, then enter the Accounts on the original bill.
5. In the Account column, enter the appropriate amount for each account (some accounts may have to be prorated).
6. Press Save and close.

When you receive the refund, you can first record the deposit of the vendor check or the refund check. Follow the steps below:

1. Go to the Banking tab and choose Make Deposits.
2. If the Payments to Deposit window appears, click OK.
3. In the Make Deposits window, select Received from the drop-down and pick the vendor who sent the refund.
4. Click the appropriate Accounts Payable account in the From Account drop-down.
5. Enter the actual amount of the Vendor check in the Amount column.
6. Hit Save & Close

Lastly, I'll show you how to link the deposit to the Bill Credit.

Here's how:

1. Go to the Vendors menu, and click Pay Bills.
2. Check the deposit that matches the Vendor check amount.
3. Pick Set Credit, apply the Bill Credit you created earlier, and then hit Done.
4. Select Pay Selected Bills and push Done.

Here is an article for the detailed steps of recording a vendor refund in QuickBooks Desktop: Record a vendor refund in QuickBooks Desktop

For future reference, you can read these articles to help you run and manage reports in QuickBooks Desktop:

• Understand reports.
• Customize reports in QuickBooks Desktop.
• Create, access, and modify memorized reports.

Don't hesitate to click the Reply button below if you have questions about recording lease deposits in QuickBooks Desktop. I'm always here to help. Have a great day.

Hi,

Thank you for responding to me. I created the entry. I am stuck with one thing, should the landlord be in the expense in chart of accounts or what should it be? Because when i made the entry it is showing as a negative $8500.

Thanks for replying to the thread, @amynhemani. Let me provide additional information about what to record in your Chart of Accounts in QuickBooks Desktop (QBDT). 

Yes, you're right. The Landlord should be recorded as an Expense to not show as a negative in your chart of accounts.

Here's how:

1. From the Vendors menu, select Enter Bills.
2. Choose the Credit Ratio button to account for the return of goods.
3. Type the Vendor name.
4. Select the Expenses tab, then enter the Accounts on the original bill.
5. In the Account column, enter the appropriate amount for each account (some accounts may have to be prorated).
6. Press Save and close.

I've provided screenshots below for your visual reference.

Moreover, you'll want to check this article if you learn to customize any report you generate and even personalize the font and style of the report: Customize reports in QuickBooks Desktop. 

Please don't hesitate to reply to the thread. I'm always here to assist if you need additional assistance recording expenses in QBDT. Keep safe.