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What can I do if my beginning Security Deposit balances are incorrect?


Instruction

If your security deposit balance is too LOW (or was never entered):

1.  Do a New Transaction and give the resident a CREDIT for the amount you need to raise the Deposit.

2.  Go to Payment-Deposit Correction. Select "Payment to Deposit". Enter that amount. (This step will turn that credit balance into a deposit balance).

3. Do a New Transaction and give the resident a CHARGE to bring their balance back up to what it was. (If it is not correct)

Note: You can date these entries in the current month, or you can open a prior month and make the entries there.

Note: This WILL impact your general ledger balances as follows and you may want to make correcting Journal Entries:

-Increases your Security Deposit liability account
-Decreases the credit account you selected (Step 1) - Cash & Accrual books
-Increases the charge account you selected (Step 3) - Accrual books only

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If your security deposit balance is too HIGH 

1.  Do a New Transaction and give the resident a CHARGE for the amount of the Deposit. (Do not use RENT)

2.  Go to Apply / Refund Balance. Under "Deposit Applied to Balance" enter the amount from Step 1. (This step will reduce the amount of the Deposit Held) 

Note: This WILL impact your general ledger balances as follows and you may want to make correcting Journal Entries: 

-Decreases your Security Deposit liability account
-Increases the charge account you selected (Step 1) 

 

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