What is seizing a security deposit?
When a family initially pays a security deposit, it's recorded as a liability in your books. The assumption is you'll eventually refund the deposit.
Seizing the deposit transfers it from a liability to income. The balance no longer belongs to the family.
How it works:
You can now seize security deposits from a child's billing tab. Simply click the "Seize" option next to a paid deposit.
A pop-up will confirm you want to proceed. Once seized:
The deposit balance is set to $0.
The seized amount is recorded for potential future reinstatement.
The funds are realized as miscellaneous income.
Key benefits:
Recognize forfeited deposits as revenue
Cleaner accounting when deposits are seized
Clearer handling of disputed security deposits
With the new security deposit seizing feature, you have an efficient way to handle forfeited balances. Please contact us if you have any questions!