How to record security deposit owed?

olingerrentalsolingerrentals Member Posts: 4

I would like to record security deposits owed by my tenants, just like I can record rent owed. Ideally, my workflow would be: when a new 12-month lease is signed, immediately set up the system with a recurring monthly invoice for rent owed and a one-time invoice for security deposit owed. I am already doing this for rent owed and it's working great!

My issue is, invoices seem to require a "product or service" which then gets assigned to an income or sales account so when that invoice gets paid, the transaction is recorded as income. This works well for rent but not security deposits (per my consulation with a Wave accountant, security deposits received go into a liability account under "Customer Prepayments and Customer Credits").

To be clear, I would really like to do this via invoices. It's a huge time saver to be able to see all unpaid invoices in one place. If I had to do some kind of a workaround, and, say, pull up a separate report to see security deposits currently owed, it would kind of defeat the purpose, then I would probably just save this info in a text file and look it up "manually".

Thanks for any help or ideas!

edited January 17, 2020 in Accounting Technical Support
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