Security Deposits Receivable Overview  Last Updated: 07/17/06

 

Contact BP Software for a  comprehensive overview of the entire accounting system.

 

The following table gives an overview of how the system debits (D) and credits (C) the various accounts as each type of security deposits receivable transaction takes place.

 

These transactions may be done at any time, and in any order.  The order shown here is just typical.

 

At any time, however mostly at move out, the operator may refund or forfeit all or part of the security deposit.

 

In rare cases, it the tenant moves out while there is still a security deposit receivable, the operator must create a transaction to reduce the SD receivable.

 

Function

Transaction Type

Purpose

1191

 SD Asset Account

1131

 SD Accounts Receivable

1600 Deposits Receivable

5940

Forfeited tenant security deposits

2191 Security Deposit Liability

Charge the full security deposit (at move in)

SDOAC

SD Charge

 

 

D

 

 

C

 

 

 

 

Receive Security Deposit Payment (anytime)

SDOAP

Chk: xxxxxxxx Thank you

D

 

 

C

 

 

 

 

 

 

 

Transfer to Liability

 

 

 

 

D

 

 

 

 

C

Reduce SD Receivable

SDRR

Reduce SD Receivable

 

 

 

C

D

 

 

 

 

 

Refund SD     (anytime but usually at move out)

Close tenant account

Refund Security Deposit

 

C

 

 

 

 

 

 

D

 

Forfeit SD  (anytime but usually at move out)

Close tenant account

Forfeit Security Deposit

 

 

 

 

 

 

 

C

D