How to Reflect Security Deposit in Sage Accounting

Reflect Security Deposit in Sage

The manner in which you reflect security deposit in accounting in Sage depends on whether you’re paying or receiving the security deposit. Sage offers solutions for both these cases, making it a great accounting solution for all users.

Receiving the Security Deposit in Sage 50

If you’re a landlord who has received a security deposit from his or her tenant, then you should follow the steps provided below:

  1. Enter the Security Deposit as a Bank Receipt.
  2. Post the Credit Entry to a NL Account.
  3. Input an appropriate name for the NL account. For instance, ‘tenant security deposit.’
  4. Process the transfer to the Deposit Protection Service as a bank payment.
  5. Post the debit to a NL account. Input an appropriate name for the account.

When the tenant returns you the security deposit, you can select the unpaid invoice and enter the payment. You can click on view all customers and sales report, and select Aged Receivables report to view all the unpaid invoices in Sage 50.  There are many other report types that you may find helpful in analyzing this data. All of these reports are listed under the accounts receivable tab.

Paying the Security Deposit in Sage 50

Security deposit is the initial payment given to the landlord by a tenant. This deposit is kept as a safeguard, and money from it is deducted if there is any damage to the property or the tenant hasn’t abided by the conditions in the contract.

You can pay the deposit as business or personal expense, but you need to record them as payables from the landlord to you. This is money owed by the landlord, the money which will be returned to you at the end of your tenure.

To enter accounts receivables in Sage 50, follow the steps provided below:

  1. Go to Customer and Sale Navigation Center.
  2. Select Quotes.
  3. Enter Customer ID. Enter your landlord as a customer.
  4. Select Date for the accounts receivable.
  5. Enter Quantity, Item name, description, Unit Price, and Tax.
  6. Click on Convert Transaction, and select Sales Order.
  7. Select Sales/Invoicing. Invoicing the transaction will enter the data into the general ledger, and display it into your reports.
  8. Input the required information.

Now, creating any report from the balance sheet will display the deposit as a liability which has to be paid back to the tenant at the end of his or her lease.

To know more, you can get in touch with our experts Sage 50 technical support number at 1800 964 3096

Related Posts

Further Reading