We are a non-profit operating on cash basis. How should we properly account for short-term security deposits in QBO, such as for a facility rentals, when the deposit check we have written is returned to us or destroyed? When the original check is cashed and a new check reissued, it’s quite obvious how to handle it. Currently, we write the deposit check (not a bill payment) from the bank and increase the “Security Deposits” (Other Current Assets) account, then void the check when it is returned or confirmed destroyed. However, in doing that, we lose the original amount information unless it is rewritten into a note field. Is there a more “proper” way to do this? I have reviewed the articles on bounced checks, but they only half apply in this case. Assuming there is a better way, how do I handle the uncashed check during bank reconciliations? Thanks for your help!

QB Issue Resolution:

Treat the “destroyed/returned” the same as a Deposit. Deposit back to the other asset account. Now the check and this deposit clear against each other next reconciliation and net 0, but you have Both Transactions for reference.

Resolution for Issue 'We are a non-profit operating on cash basis. How should we properly account for short-term security deposits in QBO, such as for a facility rentals, when the deposit check we have written is returned to us or destroyed? When the original check is cashed and a new check reissued, it’s quite obvious how to handle it. Currently, we write the deposit check (not a bill payment) from the bank and increase the “Security Deposits” (Other Current Assets) account, then void the check when it is returned or confirmed destroyed. However, in doing that, we lose the original amount information unless it is rewritten into a note field. Is there a more “proper” way to do this? I have reviewed the articles on bounced checks, but they only half apply in this case. Assuming there is a better way, how do I handle the uncashed check during bank reconciliations? Thanks for your help!' available: Yes (Solved).
Source: Intuit Community forum.

We are a non-profit operating on cash basis. How should we properly account for short-term security deposits in QBO, such as for a facility rentals, when the deposit check we have written is returned to us or destroyed? When the original check is cashed and a new check reissued, it’s quite obvious how to handle it. Currently, we write the deposit check (not a bill payment) from the bank and increase the “Security Deposits” (Other Current Assets) account, then void the check when it is returned or confirmed destroyed. However, in doing that, we lose the original amount information unless it is rewritten into a note field. Is there a more “proper” way to do this? I have reviewed the articles on bounced checks, but they only half apply in this case. Assuming there is a better way, how do I handle the uncashed check during bank reconciliations? Thanks for your help!: 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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