Overview
From Tasks > Manage Leases > Deposits, you can refund a security deposit to the tenant or apply it as a credit against the tenant’s open Accounts Receivable invoices.
The available actions depend on the deposit’s invoice and payment status.
Refund A Security Deposit
A deposit can be refunded when:
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It is refundable.
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The invoice is paid or partially paid.
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The deposit has a remaining balance.
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The refund amount does not exceed the amount paid on the deposit invoice.
From the Deposits list, select Refund for the applicable deposit.
Complete the refund information:
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Vendor Name: The vendor associated with the tenant. This value is populated automatically.
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Bill Description: Description for the Accounts Payable bill.
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Tax Details: Required for Canadian companies.
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Transaction Date: Date of the refund transaction. When interest is configured, this date is used as the end date for the interest calculation.
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GL Posting Date: General Ledger posting date.
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Liability Account: Account used for the deposit liability.
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Refund Amount: Amount to refund.
You do not need to refund the entire deposit at once. The refund amount cannot exceed the amount paid on the deposit invoice.
If interest is configured for the deposit, SIRE displays the calculated interest and total amount in the Interest Details section.
Select Post Bill to create the Accounts Payable bill.
The bill must then be paid in Sage Intacct Accounts Payable.
Apply A Security Deposit
A deposit can be applied when:
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It has a paid amount.
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The deposit has an available balance to apply.
From the Deposits list, select Apply for the applicable deposit.
Complete the application information:
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Transaction Date: Date of the Accounts Receivable adjustment. When interest is configured, this date is used as the end date for the interest calculation.
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Liability Account: Account used for the deposit liability.
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Apply Amount: Amount to apply.
Tax Details is also required for Canadian companies.
You do not need to apply the entire deposit at once. The amount cannot exceed the deposit’s remaining balance.
If interest is configured for the deposit, SIRE displays the calculated interest and total amount in the Interest Details section.
Select Post Adjustment to create the Accounts Receivable adjustment.
The adjustment is created as a credit on the tenant’s account and can then be applied to applicable open invoices in Sage Intacct Accounts Receivable.
Create Charges During Deposit Application
While applying a deposit, select Create Charge if you need to record charges against the deposit.
For each charge, complete:
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Item ID
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Transaction Date
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GL Posting Date
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Due Date
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Description
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Amount
You can add multiple charges before posting the deposit application.
Interest During Refunds And Applications
Interest is calculated only when an interest setup exists for the deposit.
SIRE uses:
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The deposit invoice payment date as the starting date.
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The Transaction Date entered in the Refund or Apply window as the ending date.
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The interest rates configured for the deposit’s Interest Rate.
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The selected Interest Basis.
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The selected Compounding Frequency.
The Interest Basis determines how the number of days is calculated. The available bases include Actual Days and 30-Day Month.
The Compounding Frequency determines how interest is applied. The available options include No Compounding, Monthly, Quarterly, and Annually.
When interest rates change during the period, SIRE applies the rate that is effective for each calculation period.
The Interest Amount is calculated automatically and cannot be edited. The Total Amount combines the refund or application amount with the calculated interest.
For refunds, SIRE includes the interest as an additional line on the Accounts Payable bill and creates a General Ledger entry using the interest liability and interest expense/clearing accounts.
For applications, SIRE includes the interest as an additional line on the Accounts Receivable adjustment and creates a General Ledger entry using the interest liability and interest expense/clearing accounts.
Frequently Asked Questions
Why Is The Refund Action Unavailable?
Refund is unavailable when the deposit is not refundable, the invoice is not paid or partially paid, or the deposit has no remaining balance.
Can I Refund Only Part Of A Deposit?
Yes. You can refund an amount up to the amount paid on the deposit invoice.
Can I Apply Only Part Of A Deposit?
Yes. You can apply an amount up to the deposit’s remaining balance.
What Is Created When I Refund A Deposit?
SIRE creates an Accounts Payable bill for the refund amount. The bill must then be paid in Sage Intacct Accounts Payable.
What Is Created When I Apply A Deposit?
SIRE creates an Accounts Receivable adjustment as a credit on the tenant’s account.
Can I Add Charges While Applying A Deposit?
Yes. Select Create Charge and enter the required charge information before posting the adjustment.
When Does SIRE Calculate Interest?
SIRE calculates interest when interest setup exists for the deposit and a refund or application is processed.
What Dates Are Used To Calculate Interest?
SIRE uses the deposit invoice payment date as the starting date and the Transaction Date entered in the Refund or Apply window as the ending date.
How Is The Total Amount Determined?
The Total Amount is the refund or application amount plus the automatically calculated Interest Amount.
What Happens After Applying The Deposit?
Apply the resulting credit to the tenant’s applicable open invoices in Sage Intacct Accounts Receivable.