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office@impressca
Level 1

Can deposits be held as security deposits and not used as payment on current invoices? I don't want the funds used as payment on current invoices.

 
Solved
Best answer August 04, 2020

Best Answers
Nick_M
QuickBooks Team

Can deposits be held as security deposits and not used as payment on current invoices? I don't want the funds used as payment on current invoices.

Hi, office@impressca.

 

Thanks for stopping by the Community for help, you absolutely can hold the deposit as a security deposit and I'm happy to show you how. Follow along below:

 

The funds should be treated as a liability to show that it doesn’t belong to you until it’s used to pay for services.

 

First, let's create a liability account to track the amount of security deposits. Here's how:

  1. Select Accounting on the left pane, then choose Chart of Accounts.
  2. Click New.
  3. Choose Other Current Liabilities from the Account Type drop-down list.
  4. Select Trust Accounts - Liabilities under the Detail Type drop-down.
  5. Enter a name for the account (for example, Trust Liabilities) or accept the suggested name.
  6. Click Save and close.

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Next, create a service item that you can use when recording security deposits. Here's how:

  1. Click the Gear icon and choose Products and Services.
  2. Select New.
  3. Choose Service from the Product/Service Information.
  4. Enter a name for the service item.
  5. From the Income Account drop-down, choose Trust Liability Account.
  6. Click Save and close.

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When refunding a security deposit, you must first issue a check for the portion to be refunded.

 

Here's how:

  1. Click the Plus icon (+) and select Check.
  2. Enter the check information.
  3. In the Account details section, select the liability account you use for security deposits from the Account column drop-down list.
  4. Select Save and close.

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Here are some articles for the complete details about security deposits:

The information above should help you with the security deposits.

 

If you have any other questions or concerns, feel free to post them here, night or day. Thank you for your time and have a nice Tuesday afternoon. 

View solution in original post

1 Comment 1
Nick_M
QuickBooks Team

Can deposits be held as security deposits and not used as payment on current invoices? I don't want the funds used as payment on current invoices.

Hi, office@impressca.

 

Thanks for stopping by the Community for help, you absolutely can hold the deposit as a security deposit and I'm happy to show you how. Follow along below:

 

The funds should be treated as a liability to show that it doesn’t belong to you until it’s used to pay for services.

 

First, let's create a liability account to track the amount of security deposits. Here's how:

  1. Select Accounting on the left pane, then choose Chart of Accounts.
  2. Click New.
  3. Choose Other Current Liabilities from the Account Type drop-down list.
  4. Select Trust Accounts - Liabilities under the Detail Type drop-down.
  5. Enter a name for the account (for example, Trust Liabilities) or accept the suggested name.
  6. Click Save and close.

    undefined

Next, create a service item that you can use when recording security deposits. Here's how:

  1. Click the Gear icon and choose Products and Services.
  2. Select New.
  3. Choose Service from the Product/Service Information.
  4. Enter a name for the service item.
  5. From the Income Account drop-down, choose Trust Liability Account.
  6. Click Save and close.

undefined

 

When refunding a security deposit, you must first issue a check for the portion to be refunded.

 

Here's how:

  1. Click the Plus icon (+) and select Check.
  2. Enter the check information.
  3. In the Account details section, select the liability account you use for security deposits from the Account column drop-down list.
  4. Select Save and close.

undefined

 

Here are some articles for the complete details about security deposits:

The information above should help you with the security deposits.

 

If you have any other questions or concerns, feel free to post them here, night or day. Thank you for your time and have a nice Tuesday afternoon. 

View solution in original post

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