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BBT SOP

Backfilling Security Deposits

Use this when a tenant paid a security deposit before we had them in AppFolio:

  • An existing tenant who was not onboarded in AppFolio.
  • An existing tenant in a property we just acquired.

The steps add the deposit and its payment to the tenant’s ledger. They do not change the bank account balance, because the money came in before the AppFolio cut-off date.

Steps

  1. Create a charge for the deposit

    • Open the tenant’s page and use the Task Menu.
    • Use account 2700.
    • Change the date from today to the date paid.

  2. Enter a receipt for the payment

    • Open the tenant’s page and use the Task Menu.
    • Change the date from today to the date paid.

  3. Make a new bank deposit

    This credits the amount to the bank account.

    • Go to the Bank Accounts page and use the Task Menu.
    • Select the property’s bank account and click Search.
    • Enter the date paid in Deposit Date.
    • Enter a description, for example: Security Deposit for [tenant] at [address].

  4. Make a reversing journal entry

    This records the deposit without changing the beginning balance.

    • Go to the Journal Entries page and select New Journal Entry from the Task Menu.
    • Change Entry Date to the date paid.
    • Leave the reversal date blank.
    • Add a description in Remarks.
    • Enter the property.
    • Credit the Operating Account for the deposit amount.
    • Debit account 2700 Security Deposit. The amount fills in on its own.

  5. Keep the adjusted cash balance at zero

    • Go to the Bank Accounts page and select Reconcile from the Task Menu.
    • Check off the two matching records: the credit and the payment. They have the same date, description and amount.
    • Click Save at the bottom of the page.

Original SOP

SOP for Backfilling Security Deposits (PDF)
Property Acquisition Setup Setup steps after closing, including adding tenants to AppFolio.