I am using QuickBooks desktop.
I have a tenant who didn't pay the rent, and it has been agreed to take the owing payments from the Rent deposit held.
The rent deposit is held in a separate bank account, which i have setup in QuickBooks, and the money deposited when it was received under the account "Tenant Security Deposits Held", which is under "Other current liability" account type.
We used to send the tenant an invoice when the rent was due, so under their customer it shows the owing invoices, and the correct balance.
How do i record the deposit being transferred to the rental bank account, and also apply the amount to the open invoices, so that the balance owing is reduced.