i take deposits for rental properties.
i input this as an invoice and use the nominal 0013 Rental Deposits (assets and liabilities).
i refunded a tenants deposit, however a cleaning fee was kept and so it was only a partial deposit refund.
i have tagged this against the original deposit invoice.
im thinking that due to the difference being kept, this cleaning fee will stay in the Rental Deposits nominal under assets and liabilities, but shouldnt it be transfered to a standard general sale?
if so, how do i sort of invoice for this and then pay it with the deposit fee witheld from the Rental Deposit nominal?
I am not an accountant so it would probably be best to double check with one. But I would have thought you’d need to raise an invoice for the cleaning fee, and then you can refund the rest of the deposit back and use this ‘cash’ to pay the invoice
Create a new invoice with 2 lines. The first one for the full deposit refund (enter a negative amount equal to the deposit amount) and the second for the cleaning fee. You can then assign each of these lines to the relevant nominal.
If you are refunding an invoice, then you need to create a credit note for the amount you have refunded. Otherwise, you will end up with an “unpaid” invoice which sits there for ever. You then need to raise an invoice for the cleaning fee, coded to sales. The refund should then be split between the credit note and the invoice for cleaning.