Hi & Happy New Year,
I have a quick query. We have sub-let our office and as part of the deal we have taken a deposit (for non paid rent or breach of terms etc). How do I account for the deposit in Solar and can I issue a receipt to the tenant? This is not a sale and it is intended that the deposit will be handed back at the end of the tenancy, so I don't think I should be issuing a sales invoice for this deposit.
Many Thanks
Hello Duncan,
Happy New Year!
You are right - you should not create a sales invoice for the deposit.
Instead, create a new liability account called 'Deposit To Be Returned',
then create a new 'Money Received' transaction with the Type set to
'General Payment' and the From Account set to 'Deposit To Be Returned'. In
the memo field enter an appropriate message to the customer (eg. 'Deposit
for sublet of office'). To email a receipt, click More Options > Email.
When you return the deposit to the client, create a General Transaction
from the Cheque Account to the Deposit To Be Returned account.
