Thanks for all the videos and I took the short class it was well worth it. So how would we return a security deposit in leu of rent? The Tenant owes back rent and is forgoing the security deposit (we have the agreement). So I zeroed out the tenant security deposit and the money is now in the withholdings account, but I want the invoice to reflect that it was paid with this money.
Hey! Thanks for watching and taking the mini camp! Okay...here is how to deal w/ the security (I would delete the journal to 0 out security) Since you are invoicing the tenant for the security withholding (which I like! Shows the record).... Create the invoice....."Security Deposit Withholdings". This invoice will recognize: 1. Revenue 2. Accounts Receivable. Now, create a journal entry: Security Deposit (Liability) - Debit Accounts Receivable (Asset) - Credit [Customer Name] That entry will 0 out the security deposit and post a credit to the customer. The last step...Open the invoice. Click "Receive Payment"....The credit should come up as an option to check and apply to the open invoice. How does that sound! FYI - We have our end to end course...taking the MiniCamp to the next level. Definitely check it out: www.incomedigs.com/reab use code TH-cam50 for $50 off. When you sign up you also get access to the Community...which includes bi-weekly live Q&A sessions with me!
Hi! Thanks for watching and for the question! If tracking a security deposit you pay to a landlord...you would record this as an "Other Asset". It would stay on your books as an asset. The money is "yours"...you just don't have control over it. Once paid back you would record a deposit to your checking account and categorize as "Security Deposit" (Asset)
Hi! Thanks for watching! You would record such a "deposit" as income. If you never intend to return it, you could include an Income category like: "Pet Fees".
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Thanks for all the videos and I took the short class it was well worth it. So how would we return a security deposit in leu of rent? The Tenant owes back rent and is forgoing the security deposit (we have the agreement). So I zeroed out the tenant security deposit and the money is now in the withholdings account, but I want the invoice to reflect that it was paid with this money.
Hey! Thanks for watching and taking the mini camp! Okay...here is how to deal w/ the security (I would delete the journal to 0 out security)
Since you are invoicing the tenant for the security withholding (which I like! Shows the record)....
Create the invoice....."Security Deposit Withholdings". This invoice will recognize: 1. Revenue 2. Accounts Receivable.
Now, create a journal entry:
Security Deposit (Liability) - Debit
Accounts Receivable (Asset) - Credit [Customer Name]
That entry will 0 out the security deposit and post a credit to the customer.
The last step...Open the invoice. Click "Receive Payment"....The credit should come up as an option to check and apply to the open invoice.
How does that sound! FYI - We have our end to end course...taking the MiniCamp to the next level. Definitely check it out: www.incomedigs.com/reab use code TH-cam50 for $50 off.
When you sign up you also get access to the Community...which includes bi-weekly live Q&A sessions with me!
How do I record security deposit that I pay to my landlord which I will receive back in 3 years?
Hi! Thanks for watching and for the question! If tracking a security deposit you pay to a landlord...you would record this as an "Other Asset". It would stay on your books as an asset. The money is "yours"...you just don't have control over it. Once paid back you would record a deposit to your checking account and categorize as "Security Deposit" (Asset)
How do you record the per deposit if they are not getting the pet deposit back at the end of the lease?
Hi! Thanks for watching! You would record such a "deposit" as income. If you never intend to return it, you could include an Income category like: "Pet Fees".