Good day, @Kristin00.
I’m glad to see you here in the Community. I can help you record the security deposit refund in QuickBooks Online.
If you entered the security deposit with an Expense or a Check, you can post the refund using a Bank Deposit. Here’s how:
1. Click the Plus icon and select Bank Deposit.
2. From the Bank Deposit screen, choose the bank where you want the amount to go to.
3. Scroll down to the Add funds to this deposit section.
4. On the Received From column, select your landlord.
5. Under Account column, choose the account you selected when you give the security deposit.
6. Enter Security Deposit Refund under Description.
7. The refund amount should go to the Amount column.
8. Hit Save and close.
Depositing the amount using the same account of the first entry will remove the balance under your landlord’s profile.
That should answer your question for today. Let me know if there’s anything else I can do to help, I’m always here for all of your QuickBooks needs. Wishing you a successful year ahead.
After creating the bank deposit, no transaction shows in the Vendor view. I can see the transaction in the Chart of Accounts, bank register. How do I process this refunded security deposit so that I have a record of it under the Vendor/Leasing Company when I view the transactions for this vendor?
hanks for joining the thread, @JustineCUE.
You can see the bank deposit under your vendors when you run a Deposit Details report. The report will show you all of your vendors/customers and the deposits that you created under them. The steps below will show you how to run the report:
- Go to the Reports tab.
- Search for Deposit Details and click on it.
- Choose Name in the Group By drop-down box.
4. Press Run Report.
Now you can see all of your vendors/customers with deposits using this report. You may also want to check out this video on customizing reports for more information.
Feel free to post any other questions below. Wishing you continued business success now and in the future.
Anna, thank you for the information. Unfortunately that will not work for us. We want to be able to see all transactions, money in/out, for a vendor in the vendor view and running a report to see if maybe there is a deposit that is not showing under the vendor is not an extra step our executives are going to want to take when reviewing QB.
I have seen other posts stating that the process is to create a Vendor Credit, then a Bank Deposit, then an expense to zero out the balance showing under the Vendor from the credit creation. The problem I'm having is when I get to the create an expense piece. I start the expense creation and on the right hand side I can see the vendor credit that I have created, but when I click ADD, I receive this message "You cannot add a credit for a vendor without any open bills".
Hi there, JustineCUE,
Thanks for sharing the steps you've made to record the security deposit refund in QuickBooks Online (QBO). And, I also appreciate you giving a screenshot so I can see what's going on your end.
Let me show you how to enter the refund in QBO. You'll need to use accounts payable as the posting account in your deposit. This will create a credit in your vendor profile. Therefore, there isn't a need to create a vendor credit. The screenshot below will show how it's done in the system.
After that, create an expense and add the deposit to zero out the transaction. Here's how:
- Click the + New button, then select Expense.
- Enter the vendor name in the Payee field.
- Include the deposit by clicking Add that appears at the right side.
- The transaction becomes a bill payment. Mark the deposit, then click Save and close.
- Go back to the vendor profile to check those transactions.
The Refund a security deposit article provides additional information for your guidance.
Keep me posted if there's anything else I can help you with QuickBooks. I always have your back.
I'm trying to figure out the best way to enter a rent deposit refund. I think this is probably the best response. However, I paid the deposit using my personal account rather than my business account prior to having quickbooks (and knowing how to do journal entries) . I did use the deposit payment as an expense on my tax return for that year.
I want to make sure I enter this deposit refund correctly, so is this the correct way for my situation?
You're on the right track, @thrivewithchiro.
Entering the deposit refund as an expense would be the best way to record it. However, I'd suggest seeking help with your accountant for more guidance.
Since you've paid the deposit refund using your personal account, feel free to read this article for the detailed steps and information: Pay for business expenses with personal funds.
As always, you can visit our QuickBooks Community help website if you need tips and related articles in the future.
Please keep in touch if there's anything else I can do to help you succeed with QuickBooks. I've got your back. Have a great day.
Thank you Mark,
So would you recommend recording journal entries for owner equity investments made prior to having quickbooks? For example...the rental deposit as discussed above was over 4 years ago. Should I go back and make those Journal entries anyway?