How do you record a security deposit and reconcile it with deposits to a checking account

pfiscal

a total amount of security deposits from 4 tenants sharing 2 units was deposited into a checking account in one lump sum (shows up in checking account as deposit).

That amount was then transferred to bank accounts I don't currently have setup in quicken (and not sure if it makes sense to bother), which are interest bearing savings accounts as required in the state where I live.

I can add the security deposit amount to each tenant, which will automatically create a liability.

I'm trying to figure out, how do I reconcile that with the transactions in the bank account? Or what is the relationship?

Any advice on how to set this up would be much appreciated

UKR

In the Rent Center, Edit Rental Property dialog, have you recorded the security deposit individually for each of the 4 tenants? This should have created 4 transactions, as a transfer from the "*Security Deposit Liability*" account to the Checking account(*) or, better, an intermediate Checks to Deposit account.

(*) By default, the Security Deposit transaction goes to whichever account name you have chosen as the account name to deposit rent received from this tenant. See images below.

So, now you have the 4 security deposits sitting in the Checks to Deposit account register. Edit the transaction you created in your real Checking account for the full security deposit amount and re-categorize it as a transfer to [Checks to Deposit]. Done correctly, this should zero out the balance in Checks to Deposit.

NotACPA

A Security Deposit isn't income ...  it's money you owe back to the tenant at the end of the lease.

SO, show the deposit as coming from a LIABILITY account that you create in Q.

AND, for any of this to make sense, you need to set up ALL involved accounts in  Q.

UKR

In the Rent Center, Edit Rental Property dialog, have you recorded the security deposit individually for each of the 4 tenants? This should have created 4 transactions, as a transfer from the "*Security Deposit Liability*" account to the Checking account(*) or, better, an intermediate Checks to Deposit account.

(*) By default, the Security Deposit transaction goes to whichever account name you have chosen as the account name to deposit rent received from this tenant. See images below.

So, now you have the 4 security deposits sitting in the Checks to Deposit account register. Edit the transaction you created in your real Checking account for the full security deposit amount and re-categorize it as a transfer to [Checks to Deposit]. Done correctly, this should zero out the balance in Checks to Deposit.