Are you managing a new property where there is an existing tenant and the security deposit is already being held by the owner? Or is this a new lease and the tenant sent the security deposit direct to the owner? The article shows how to record this
Step 1 - Be sure to have a Chart of Account that is specific for Owner Held Security Deposits.- Prior to following the rest of this article, you will need to create or check that you have a liability chart of account called "Owner Held Security Deposit" (ensure that the option "is Tracked as Held" is toggled OFF and "is Tracked as Security Deposit" is toggled ON). if you need to create this account follow this article on How to Create a Chart of Account
Step 2 - Create an owner held security deposit lease charge on the lease
- Search for the lease
- In the lease view page, click on the green Actions button
- Select Add Charge from the drop down
- In the New Lease Charge screen, complete the fields
- Account - Select your Owner Held Security Deposit chart of account.
- Amount - Enter the amount of the deposit
- Date Posted - Enter the appropriate date.
- The Description will pre-fill to the name of the account, but you can change this if needed
- Click the green Save button
Step 3 - Record a credit on the lease and apply it to the owner held security deposit lease charge
- In the lease, click on the green Actions button
- Select Add Credit from the drop down
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In the Add Tenant Credit page, complete the fields to record the credit
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Top Section - Details
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Account - Choose your Owner Distribution chart of account
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Amount - Enter the amount to be credited. Should be the same amount of the Owner Held Security Deposit charge
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Date Posted - will pre-fill, but you can adjust this if needed
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Description - Enter text to describe the transaction
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Bottom Section - Charges
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Apply the credit to the owner held security deposit charge that was recently created
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Click the green Save button
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