QB Issue Resolution:

Refunding part of a security deposit
Answer ID: 6312

If you are using a liability account to post (hold) your tenant security deposits and you are only paying part of the deposit back to the tenant:

Write the check:

Choose Plus Sign Icon > Check.
Enter the check information. At the bottom, from the Account drop down list, select the security deposit liability account.
Click Save.

Create any needed product service items:

You should have product service items that post to repairs expense, cleaning expense and any other expenses you would charge the tenant. If not, you should create them.

Choose Gear Icon > Products and Services List.
At the bottom, click New.
Name the item, select the Account, and click Save.

Create the invoice:

Choose Plus Sign Icon > Invoice.
Select the tenant name. Create the invoice using the rent and/or repairs and/or cleaning (or other appropriate) product service items. This must equal the amount of the security deposit you are not returning.
Click Save.

Enter a credit memo:

Choose Plus Sign Icon > Credit memo.
Select the tenant. Select the security deposit product service item.
Under Amount, enter the amount that is not being returned to the tenant.
Click Save

Apply the credit to the invoice:

Plus Sign Icon > Receive Payment.
Select the Tenant. Beneath the form, the credit and invoice should be checked off at the left and equal. (If they are not listed, they have been automatically applied; click Cancel at the bottom right.)
At the bottom, click Save. (Make no entry on the form.)

The tenant account should now be zero. The amount owed to the tenant in the liability account should also be zero.

Answer ID 6312
Products QuickBooks Online Essentials (H)
QuickBooks Online Plus (H)
Categories Using This Product
Date Created 05/01/2014 04:18 PM
Date Updated 05/05/2014 05:35 PM
Allow Crawling? Yes

Resolution for Issue 'Refunding part of a security deposit.' available: Yes (Solved).
Source: Intuit Community forum.

Refunding part of a security deposit.: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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