Transfer Security Deposit to a Different Tenant

This guide outlines the step-by-step process of transferring a security deposit to a different tenant.

You’ll use both Sage Intacct Real Estate and the Intacct Accounts Receivable (AR) module to complete this process. Follow each step carefully to ensure the deposit is correctly transferred.

Step 1: Create an AR Adjustment from the Original Security Deposit

1. Navigate to the Real Estate module

2. Access the Tasks/Deposits screen

3. Search for the original security deposit

4. Utilize the “Apply” feature to generate an AR Adjustment from the original security deposit record. You need to complete the following fields:

   1. Adjustment Date = Transfer Date

   2. Liability Account = Security Deposits account

   3. Amount = The Amount you need to transfer to a different tenant

5. Click on the “Create Adjustment“ button

Step 2: Create a New Security Deposit for the New Tenant

1. Access the Tasks/Manage Leases/Lease screen in SIRE

2. Search for the Lease of the New Tenant (could be the same or a different lease) and click on the “Edit” button

3. Go to the Deposits tab and create a new Security Deposit. You need to complete the following fields:

   1. Type = Security Deposit Type

   2. Tenant = The new Tenant

   3. Unit = The corresponding Unit

   4. Refundable checkbox = If the Security Deposit is refundable or not

   5. Create Invoice:

      1. Transaction Date = Transfer date

      2. Accounting Date = Transfer date

      3. Item ID = Security Deposit Item ID

      4. Amount = The new Security Deposit amount

4. Click on the “Save” button, and the New Security Deposit Invoice is created

Step 3: Duplicate the AR Adjustment from Step 1 and create a Debit Memo for the Original Tenant

1. Go to Intacct Core Application

2. Access the Account Receivable/Adjustments screen

3. Search for the AR Adjustment created in Step 1 for the Original Security Deposit in the Posted state

4. Click on the “View” and then the “Duplicate” buttons

5. Change the “Type” field from Credit Memo to Debit Memo

6. Click on the “Save” button (The Debit Memo serves as the offsetting entry for the Original Security Deposit adjustment)

Step 4: Duplicate the AR Adjustment again and create a Credit Memo for the New Tenant

1. On the Account Receivable/Adjustments screen, click on the “View” button for the same AR Adjustment and then on the “Duplicate” button

2. Change the “Tenant” field to the New Tenant associated with the new Security Deposit created in Step 2

3. Re-enter the Security Deposit Account that is cleared when switching the tenant

4. Click on the “Save” button

Step 5: Apply the Debit Memo from Step 3 to the AR Adjustment from Step 1

1. Go to Accounts Receivable and click on the “+“ button next to the “Receive payments - New!” button

2. Complete the “Tenant” field with the Original Tenant

3. Click on the “Show Invoices” button and pick the AR Adjustment created in Step 1

4. Complete the “Credits to apply” field with the Security Deposit amount

5. Click on the “Post” button

Step 6: Apply the Credit Memo from Step 4 to the New Security Deposit Invoice from Step 2

1. Go to Accounts Receivable and click on the “+“ button next to the “Receive payments - New!” button again

2. Complete the “Tenant” field with the New Tenant

3. Click on the “Show Invoices” button and pick the Security Deposit Invoice created in Step 2

4. Complete the “Credits to apply” field with the Security Deposit amount

5. Click on the “Post” button

Step 7: Process Complete

• You have now successfully transferred the security deposit to the New Tenant.

• The old security deposit is shown a fully applied.

• The new security deposit is marked as Paid.