Understanding the Security Deposit Process

To recover expenses for damages in excess of normal wear and tear, or to ensure that keys are returned or utility bills are paid, you might require a security deposit from the tenants. The JD Edwards EnterpriseOne Real Estate Management system provides security deposit programs that assist you in entering and refunding deposits as necessary. You can refund full or partial amounts, accept security deposits as monthly payments, and track any interest that is generated by security deposits.

Follow these steps to enter and track security deposits:

1. Enter a security deposit record.

   You enter the security deposit to create a record in the Security Deposit Master table (F1565), which you use for tracking and reporting information about security deposits.

2. Generate a manual billing record to print an invoice. (optional)

   When you enter the security deposit record, you can create a security deposit invoice in the Lease Billings Master table (F1511B). You can then use the Print RE Invoices program (R15500) to print the invoice. If you do not have to print an invoice, you do not have to generate a billing record.

3. Receive and post the security deposit receipt.

   You enter the security deposit from the tenant as an unapplied receipt in the RE Receipts Entry program (P15103). You identify the receipt as a security deposit by using an unapplied bill code, such as SECD. The bill code that you use must be assigned to a security group so that the system recognizes it as a security deposit.

   After you enter the receipt, you must post it or the system does not display information that the receipt has been received using the Required vs. Received program.

4. Generate interest. (optional)

   If required, you can generate interest on the security deposit that you can refund to the tenant when you refund the deposit.

5. Refund part of the deposit. (optional)

   Depending on the terms of the lease, you might be required to refund a portion of the security deposit to the tenant after a designated time period (for example, after they have paid their rent on time for six months).

6. Apply the deposit to invoices. (optional)

   When the lease expires, you can assess whether to withhold a portion of the deposit to pay for damages, rent, utilities, and other expenses. You use the Security Deposit Refund Application program (P15654) to review the security deposit and access the RE Receipts Entry program, which you use to apply the unapplied receipt (security deposit) to invoices as necessary.

7. Refund the security deposit.

   You run the Security Deposit Refund Generation program (R15655) to generate a voucher in the Accounts Payable system and an adjustment (receipt) in the Accounts Receivable system. You use the voucher to pay the tenant and the adjustment to close the unapplied receipt record.

8. Post records.

   After you generate vouchers, you must post both the voucher and receipt batches to update the appropriate general ledger accounts.