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How to Pay Rent with a Security Deposit

You can watch the video procedure or follow the instructions below.

Instructions

Note: You must follow these steps even if you entered the security deposit at the beginning of the lease.

1. Go to the “Accounting” tab and the “Collections” subtab.

2. In the selector at the top left, click on the unit you want to modify.

3. Click on “Invoicing” at the top right.

4. Make sure that the invoice is assigned to the right company, property, and unit.

5. Tick “Lease” in the “Assignation” column.

6. Type “2115 – Cashed Deposit” in the “Account” section.

7. Describe the deposit in the “Description” section (example: “reimbursement of a security deposit”).

8. Enter the amount of the deposit as a negative amount.

9. Select the date of the deposit (the day of the rent payment of the month that will be paid with the deposit).

10. Click on “Finish.”

11. In the “Collections” subtab, find the collection that will be paid with the deposit.

12. In the row for the deposit, enter the date of payment, the original payment method of the deposit, and the negative amount of the deposit. A new row will appear; ignore it.

13. In the row for the rent payment, enter the date of payment, the same payment method as the deposit, and the positive amount of the deposit.

14. Click anywhere to update the balance.

You have now paid rent with a security deposit.

Transcription of the Subtitles

Here is how you pay rent with a security deposit.

If your tenant gave you a security deposit in the beginning of their lease, they might want to use it to pay the rent for their last month.

Go to the “Accounting” tab and the “Collections,” and click on “Invoicing” in the upper right corner.

In the “Assignation” column, make sure that the invoice is assigned to the right company, property, and unit. However, you need to tick “Lease.”

Select the account “2115 – Cashed Deposit.”

Enter a description, which can simply be “Reimbursement of the security deposit.”

Enter the amount of the deposit as a negative amount.

Select the first day of the month that will be paid with the deposit. It can also be another day if the tenant pays their rent on a different day.

Click on “Finish,” and click on the three lines in the upper left corner.

In the row with the negative amount, enter the date of payment, which is the day of the rent payment of the month being paid with the deposit, the original payment method of the deposit, and the negative amount of the deposit.

Now, in the first row, enter the same date of payment, payment method, and positive amount as the deposit.

The balance should now be at zero.

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