Are you wondering how to properly enter deposits in QuickBooks? Here are step by step instructions for how to best enter first and last month’s rent deposits. You’ll get accurate reports every time if you follow this procedure.
Q: The tenant has given me a deposit check for the first and last month’s rent. How can I record the deposit without creating a false invoice, as I may have to return funds?
A: Here is what you do for accurate reporting:
- Create two items and accounts: rent (service item) linked to a Income account and last month rent, linked it to an Liability account.
- Create two Invoices for each item
- Receive Payment
- Create an invoice for last month’s rent
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