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jburski
Jan 12, 2021 6:58 PM UTC
Solved

How do I apply the amount paid to our landlord as a security deposit to outstanding invoices we owe to the landlord?

We originally made a journal entry to an other asset account (account 1400 - Security Deposit on Lease). I need to remove it from account 1400, but I don't know how to apply it to the landlord's outstanding invoices (there are two invoices outstanding, and both will be paid in full with our security deposit of $2,400). Thanks for the assistance!
MaryLurleenM
MaryLurleenMAnswer
Jan 12, 2021 9:14 PM UTC

You can link the invoice to the journal entry created, jburski.

 

Make sure to select A/R as the account and the landlord's name under the name column of the JE. The credit amount posting account is A/R, while the debit amount is a bank. This way the journal entry will be linked to the customer's invoice.

 

You can create a retainer in the future. It allows you to store a deposit until you need to use it to pay for an invoice. Check this article for more information: Record a retainer or deposit.

 

Stay in touch with me if you have other questions. 

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1 reply

MaryLurleenM
MaryLurleenMAnswer
Jan 12, 2021 9:14 PM UTC

You can link the invoice to the journal entry created, jburski.

 

Make sure to select A/R as the account and the landlord's name under the name column of the JE. The credit amount posting account is A/R, while the debit amount is a bank. This way the journal entry will be linked to the customer's invoice.

 

You can create a retainer in the future. It allows you to store a deposit until you need to use it to pay for an invoice. Check this article for more information: Record a retainer or deposit.

 

Stay in touch with me if you have other questions. 

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