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amynhemani
Mar 29, 2024 11:22 PM UTC
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Lease Deposit

How do I enter the lease deposit in quickbooks.

It is the money that is blocked for a few years till I get it back and when I do, I am sure it wont be the same.

Rainflurry
RainflurryAnswer
Mar 30, 2024 12:42 PM UTC

@amynhemani 

 

Disregard the responses given by QB employees - they are incorrect.  A deposit with your landlord is an asset, not an expense.  Create an Other Assets category in your chart of accounts called 'Lease Deposit' and assign that category to the payment made to the landlord.  When you receive the deposit back, hopefully with interest, you will make a deposit and assign $8,500 to the Lease Deposit account and Interest Income to any interest received.  That will zero out the Lease Deposit account and book the interest received as income.  

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4 replies

Ethel_A12
Mar 30, 2024 1:21 AM UTC

Hello there.

 

I'll help you record the lease deposit in QuickBooks Desktop.

 

You need to create a bill credit for the amount.

 

Here's how:

 

  1. From the Vendors menu, hit Enter Bills.
  2. Choose the Credit Ratio button to account for the return of goods.
  3. Type the Vendor name.
  4. Select the Expenses tab, then enter the Accounts on the original bill.
  5. In the Account column, enter the appropriate amount for each account (some accounts may have to be prorated).
  6. Press Save and close.

 

When you receive the refund, you can first record the deposit of the vendor check or the refund check. Follow the steps below:

 

  1. Go to the Banking tab and choose Make Deposits.
  2. If the Payments to Deposit window appears, click OK.
  3. In the Make Deposits window, select Received from the drop-down and pick the vendor who sent the refund.
  4. Click the appropriate Accounts Payable account in the From Account drop-down.
  5. Enter the actual amount of the Vendor check in the Amount column.
  6. Hit Save & Close

 

Lastly, I'll show you how to link the deposit to the Bill Credit.

 

Here's how:

 

  1. Go to the Vendors menu, and click Pay Bills.
  2. Check the deposit that matches the Vendor check amount.
  3. Pick Set Credit, apply the Bill Credit you created earlier, and then hit Done.
  4. Select Pay Selected Bills and push Done.

 

Here is an article for the detailed steps of recording a vendor refund in QuickBooks Desktop: Record a vendor refund in QuickBooks Desktop

 

For future reference, you can read these articles to help you run and manage reports in QuickBooks Desktop:

 

 

Don't hesitate to click the Reply button below if you have questions about recording lease deposits in QuickBooks Desktop. I'm always here to help. Have a great day.

amynhemaniAuthor
Mar 30, 2024 5:21 AM UTC

Hi,

 

Thank you for responding to me. I created the entry. I am stuck with one thing, should the landlord be in the expense in chart of accounts or what should it be? Because when i made the entry it is showing as a negative $8500.

Rainflurry
RainflurryAnswer
Mar 30, 2024 12:42 PM UTC

@amynhemani 

 

Disregard the responses given by QB employees - they are incorrect.  A deposit with your landlord is an asset, not an expense.  Create an Other Assets category in your chart of accounts called 'Lease Deposit' and assign that category to the payment made to the landlord.  When you receive the deposit back, hopefully with interest, you will make a deposit and assign $8,500 to the Lease Deposit account and Interest Income to any interest received.  That will zero out the Lease Deposit account and book the interest received as income.  

    MAnneJ
    Mar 30, 2024 6:50 AM UTC

    Thanks for replying to the thread, @amynhemani. Let me provide additional information about what to record in your Chart of Accounts in QuickBooks Desktop (QBDT). 

     

    Yes, you're right. The Landlord should be recorded as an Expense to not show as a negative in your chart of accounts.

     

    Here's how:

     

    1. From the Vendors menu, select Enter Bills.
    2. Choose the Credit Ratio button to account for the return of goods.
    3. Type the Vendor name.
    4. Select the Expenses tab, then enter the Accounts on the original bill.
    5. In the Account column, enter the appropriate amount for each account (some accounts may have to be prorated).
    6. Press Save and close.

     

    I've provided screenshots below for your visual reference.

     

     

    Moreover, you'll want to check this article if you learn to customize any report you generate and even personalize the font and style of the report: Customize reports in QuickBooks Desktop. 

     

    Please don't hesitate to reply to the thread. I'm always here to assist if you need additional assistance recording expenses in QBDT. Keep safe. 

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