If you are going to operate using a Custodial Scheme to deal with your tenants deposits, you must first set up the deposit control account in Arthur
Select “Financials” from the subheadings followed by Bank Accounts. From here select “Add Bank Account” and set up as follows. Adjust the custodial section of the name to any alternative named scheme that you may use.
Map Arthur Bank Account to QuickBooks
Synchronise Arthur and QuickBooks. You will now be able to find and use this account in QuickBooks.
Once you have set this up – follow these next guidelines
Go into the Tenancy > Add Transaction type “Registered deposit charge”. This will create the charge on the tenant deposit statement.
Go into Quickbooks > Banking and match the the bank line with the relevant deposit invoice posted by Arthur.
Once you conduct a bank transfer to the custodial scheme (in real life), you will be met by a spent item in QuickBooks.
From here, you would select the Transaction and fill in the fields as follows;
Complete this by using the “Add” feature in QuickBooks. This will credit the Custodial Scheme Account.
To locate the list of accounts. Go to Account > Chart of Accounts.
This is for a scenario where the Custodial Scheme (DPS, TDS, My Deposits) refunds the tenant directly.
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”
*Ignore this step if there are no deductions to the tenant.*
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
This is done within the tenancy in Arthur. Select Add Transaction and enter “Sundry Charge”. This will decrease the amount owing to the tenant and count as a deduction.
In QuickBooks (this will be after you sync)
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
Payee – Select the custodial scheme
Category – The Account set up for your custodial scheme
Memo – Description
Class – Tracking codes for unit and properties
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.
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.
If the you are refunding the tenant directly, select your client bank account as the ‘Remittance bank account'( in the image above). You can then reconcile the tenant remittance transaction against the payments (refund) made to the tenant on QuickBooks.
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