Balancing security deposits

To ensure that your lease records match what was received for security and other refundable deposits, use the refundable deposit report for the property to ensure that it matches the balance in the security deposit trust account. This information is taken from the lease record and should be used as a sub-ledger when doing a trust reconciliation. The report will break out the amounts that are

• Outstanding 
• Collected
• Retained for damages 
• Returned to the tenant
• Interest expense accrued (interest is accrued on the lease's anniversary)

Collecting Deposits

When a security deposit (or other refundable deposit type) receivable is deposited in accounting the deposit will be automatically categorized as Collected as of the deposit date. If you need to manually change the deposit to collected you can do so by

1. Navigating to the lease and click on Manage Deposits
2. Select Collected
3. Click on Next: History
4. Update the date that the deposit was collected
5. Click on Update Refundable Deposits 

Issuing Deposits

Deposits can be returned to the tenant, retained for damages or retained for rent collection from Issue Deposit. 

If you need to manually change the deposit to returned you can do so by

1. Navigating to the lease and click on Manage Deposits
2. Select Returned
3. Click on Next: History
4. Update the date that the deposit was returned
5. Click on Update Refundable Deposits

Reconciliation

You should also do an account reconciliation for the security deposit trust account to the appropriate bank statements. Following these recommendations will provide you with 3 sources that should all correspond and match - refundable deposit report, security deposit trust account, and the bank statement.