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Rental deposits: receive, apply, refund

Refundable deposits are a liability, never revenue - and reconcile to their G/L account.

Steps

  1. On the agreement, under Deposit, click Receive deposit: the bank, cash or M-Pesa account, amount and reference. Posted Dr the bank / Cr Refundable rental deposits.
  2. Apply to an invoice: choose an open invoice of the customer and the amount - the invoice balance goes down (Dr Refundable rental deposits / Cr the customer).
  3. Refund: from a bank or cash account (Dr Refundable rental deposits / Cr the bank).
  4. Applied to the wrong invoice? Reverse it (approval rights): the deposit is held again.

Good to know

  • Lease & rentals → Deposits compares the deposit ledger with the G/L account.
  • A deposit applied to an invoice can't be voided from Payments - only reversed from its agreement.