How to Refund Tenants Deposits Directly Held With Custodial Scheme (QuickBooks)

This is for a scenario where the Custodial Scheme refunds the tenant directly. In order to do this, you must initially follow the set-up instructions in this guide

1.Transferring the Deposit

Initially, the deposit needs to transfer back into the main tenant account in preparation for its return. This is created in Arthur using the ‘Add Transaction’ within the tenancy, and use transaction type Deposit Transfer to Rent Account

2. Dealing with disbursements

Ignore this step if there are no deductions to the tenant. If there are deductions, you must undergo two steps, one in Arthur and one in QuickBooks

In Arthur

This done through the tenancy in Arthur. Select Add Transaction and enter disbursement charge. This will decrease the amount owing to the tenant and count as a deduction

In QuickBooks

Go onto your Banking page. If there are any deductions, the Custodial Scheme will send you the funds directly. You must deal with these in order to level off the nominal account within Arthur. Find the received item from the Custodial Scheme and follow these steps

In…

Payee – Select the custodial scheme

Category – The Account set up for your custodial scheme

Memo – Description

Class – Tracking codes for unit and properties

3. Remitting to the tenant

This is done in the ‘Close tenancy’ function within the tenancy screen in Arthur. On the left click on the three dots and select Close Tenancy. At the point of closing the tenancy you will be prompted to enter a bank account from where the refund is coming from. You will choose the account set up in the following guide.

It will create a remittance totaling the sum of Deposit less deductions.  No entry will go through the bank account in QuickBooks as the credit will be created in QuickBooks as a credit to the custodial account.

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