I’m after advice on how to handle this type of transaction. These relate to rental income Tenant pays £1,000 into my account. £500 is a “sale” as rent, but the other £500 is a deposit which has to be paid on to DPS. I can create (and pay) an invoice for the £500 rent, but how do I deal with the d…

Hi @Scooby_7 , I have found an answer on an older post which you may find helps you: [image] Accounting for Rental Protection Service (RPS) Deposit Accounting The Deposit Protection Service (DPS) could be managed as a separate bank account. Any payments made to the Deposi…

Thanks Beth - that was my initial thought, but the problem with it is that DPS do NOT repay the money to the landlord so it would be easy for the “bank accounts” to become out of step with DPS. Furthermore, it isn’t strictly accurate in accounting terms since the money is nether an asset nor is the…

But you know when roughly the dps will repay the tenant, so you simply add a transaction yourself to that bank account to clear the balance and mark it as repaid. I’m not sure if quickfile let’s you have a bank account that doesn’t show on the balance sheet. But I’d be inclined to ignore it when pr…

One way you could trick it is if you go into the chart of accounts, find the nominal that corresponds to the DPS bank account and tick the box allowing that nominal to be used on sales invoices. Now when you invoice the tenant you include the deposit on that invoice as a separate line (no VAT, if y…

It’s not that simple Paul - Keeping track might be OK if you only have a couple of properties, but with several hundred it becomes impossible. We also have some (overseas) tenants where we have released the deposit but DPS have been unable to contact them so the money is still sitting there (in one…

I can see it works mathematically but as you say it needs careful treatment. The refund approach is much simpler

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QFBeth 26 August 2020 08:32 2

Hi @Scooby_7,

I have found an answer on an older post which you may find helps you: