I’m using manager to keep track of property management expenses.
When I rent out a condo to a new tenant, they typically pay a refundable security deposit equal to one month’s rent. I am to hold onto this security deposit until they move out (maybe a year or more later), at which time I refund it (minus any damages).
I’ve set up the deposits according to this guide.
It works, but sets up the deposit as a negative balance in the customer’s account receivable. This is a problem when I create a monthy sales invoice (rent) for the tenant, because it always deducts the amount of the security deposit from the monthly rent that is due.
- Initial Security Deposit: $2000.00
- Monthly Rent Due: $2000.00
So the first month when the tenant moves in, he pays $4,000.00, which is the first month rent plus the security deposit. The next month, the sales invoice is set up for $2,000; however, because the tenant has a balance due to the security deposit, manager marks the 2nd month’s sales invoice as paid in full.
Is there a way to prevent this and keep track of the security deposit? I basically want the customer to have a negative account’s receivable balance in the amount of the security deposit, until they move out.