when your tenants move in do they give you one check for both the security deposit
and the first month's rent well then you should watch this video quickbooks desktop property
management receiving only one check for the first month's rent and the security deposit
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if you received only one check for the first month's rent and security deposit
then whichever bank account the check is physically deposited to
does not matter you will transfer half to the other account anyway
so we save that step for last in this video because that's really the easiest part
what's the actual problem well if you get one tenants check for both the security deposit
and first month's rent it means half of that check belongs in the tenants security deposit payable
and the other half of that check belongs in the normal monthly payout
as rent to the landlord but how can you record that in one transaction the physical problem is
that the receive payments window that you record the payment in will only allow you to choose one
you can only choose one liability account per transaction in the receive payment window
it does not let you split the check you either have to record it as a deposit or as the normal
monthly rent to landlords so how do you handle this well you would record the tenants payment
in the received payments window two times first record half the check as one transaction
and use the tenant security deposit payable account then record the other half of the check
as a second transaction and use the rent payable to landlord's account
and make sure that you put in the same check number and make sure you record it in the same
bank account because physically it's one check going into one account for example let's imagine
we received from a new tenant of dave deeney gary greenstein two thousand dollars on april one with
check number eight four seven two gary told us that half of the april half of the check
is for april's rent and the other half of the check is for the tenant security deposit
so on april 1 we physically deposit the check into the operating bank account with the intention to
physically transfer half to the trust account as soon as the check clears and of course
to record this we use the receive payment window two times now what will be the result in the trial
balance after we record that check two times well the tenant security deposit will increase
by well excuse me the rent payable to landlord because a thousand of that check is uh the april
rent that will increase so that we now owe more to the landlords two thousand dollars
and the tenant security deposit payable will also increase by a thousand and become three thousand
because the 2000 was physically deposited into this operating bank account chase
bank will increase by 2000 and become 6450 and these are the numbers that will be the result
after both entries of that one check so what do we do well first we have to add gary greenstein to
the tenant list we click customer customer center select the landlord that he's under dave deeney
new customer add job and his name is gary greenstein
click ok and now we can record transactions close this and now we can record gary's payment and
we make the date april 1 of 2022 and we uh make sure we choose gary greenstein under dave deeney
now we make sure that the money is deposited into the cash and chase bank
where we physically deposited the money and we put the check number eight four seven uh two
we must make sure to choose only one of these liability accounts first let's cover the april
rent by putting it into rent payable to landlord client so far everything is normal if we were
recording a normal tenants rent payment the only difference is we put half the check amount
and not the whole amount now we're not done this is only half we click save a new and click ok
now we do the exact same thing with the exact same tenant with the same check number
with the same bank account and the same amount which is half but the second half is going to
be recorded into the tenant security deposit payable now after recording this second entry
security deposit cash and bank all the other information the same when we click save and close
and click ok we can open the trial balance and see the results are exactly as what we expected the
tenant security deposit payable increased to three thousand rent payable to landlord client increased
to two thousand and the check was physically deposited in the cash and chase bank 6450
and now we simply transfer half of that money from the chase bank account to the tenants cash deposit
trust bank account what will happen when we do that on april 1st well if we're transferring
from the chase bank account then that will decrease by a thousand and become
thousand four hundred fifty and if we're depositing it into the tenants cash trust account
that will increase by a thousand and become four thousand three hundred fifty
it's very very simple to record a transfer in quickbooks banking transfer funds the date
is april 1 because you transferred the money right away or at least when the check cleared
and we transferred the money from the chase bank account to the tenants cash deposit trust account
and the amount is a thousand and you can explain it in the memo funds transfer half the
check for and then you could write half the first check
for deposit and rent gary green
steam then when we click save you can see the results are exactly as what we expected
cash in the chase bank decreased to 5450 and the tenant's cash deposit increased to 4350
you should also check the detailed reports when we look at the landlord
payout balances for the normal rent you should be able to scroll all the way down
to the bottom of dave deeney and see that you now have a new tenant gary greenstein
and this tenant gary greenstein gave you this thousand dollar payment as part of the landlord
payout balances but if you look at the tenant security deposits you should be able to find
the same thing you should be able to scroll all the way down and in tenant security
deposits see a payment from gary greenstein and they should each read a thousand dollars
so on your statement you'll see only one check number eight four seven two for two thousand
check mark both of them in the uh bank reconciliation window in your quickbooks to
match these two to the one in the statement then this method will work perfectly you