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CraigWatson
June 6, 2020
Question

Recording Van Rental Expense and Then the Returned Deposit Amount Correctly

  • June 6, 2020
  • 1 reply
  • 0 views

Hi,

 

I have regularly rented a van from Enterprise and they take a deposit of £200.00 upfront along with the rental cost.

 

So, I currently have a debit from my account of £275.00 and 5 days later the deposit of £200.00 is credited back.

 

Before I record this completely wrong, does anyone have experience with this and how to record it correctly to prevent showing the returned deposit as a form of income?

 

Thanks 

Craig

1 reply

S
ShiellaGraceA
June 6, 2020

Hi there @Craig90,

 

If you've signed up for our merchant account, you can reverse your sales receipt. This way, you're refunding back the deposit to your customer. However, I'd still recommend consulting with an accountant to make sure you're doing it correctly.

 

The instructions below are sure to help you create a refund to your deposit. Here's how:

 

  1. Go to Gear, then Products and Services, then New.
  2. Select Stock to create and inventory item of your van rental. Set the Sales price and Cost at zero.
  3. Create a non-inventory item called Deposit on Equipment. Set the Price to zero. Then, a non-inventory item called Rental Fee. Set the Price to zero.
  4. Go to +New, then Sales Receipt. Enter inventory item (van rental) on the first line and Deposit on Equipment on the second line. The amount on the first line should remain zero while the second line should reflect the amount of the deposit.
  5. Record the receipt, taking the payment by credit card, check or cash as appropriate.
  6. When the van is returned, locate the receipt and reverse it, thereby making the refund to the customer. If the deposit was placed using a credit card, the reversing process will automatically refund the amount on the credit card. The reversal of this receipt also places the equipment back in inventory so it may be tracked properly.
  7. Create another sales receipt using the non-inventory item called Rental Fee and enter the appropriate amount for the rental charge. Record the payment.

With these steps, you're able to refund the deposit and record your sales correctly. You can learn more about payments FAQs at this link here: Recording QuickBooks Payments bank deposits FAQs.

 

I've also added our page about manage customers and income that you might find helpful. It contains related articles and steps to guide you through.

 

Please know that you're always welcome to swing by if you have follow up question, we're here to help a hand. Thanks for reaching out and have a lovely weekend.

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