--- title: User Guide - Security/Construction Deposits, Refunds, and Forfeitures description: This guide explains how to manage refundable deposits within the system, including common use cases like architectural projects and amenity rentals. It covers the full deposit lifecycle—from recording and tracking funds to issuing refunds or applying forfeitures when necessary. --- [Skip to content](https://solutions.smartwebs.com/en-us/smartwebs-solutions/user-guide-security/construction-deposits-refunds-and-forfeitures#main-content) English - United States Show submenu for translations ![Logo-FullColor HOA management Platform-1](https://solutions.smartwebs.com/hubfs/Logo-FullColor%20HOA%20management%20Platform-1.svg) - [Smartwebs Solutions Home](https://solutions.smartwebs.com/) - [Contact Us](https://share.hsforms.com/2VBrljHAiSeCkcUy_-IEe_Aq0yoc) - [Manage Tickets](https://support.smartwebs.com/tickets-view) Open main navigation Close main navigation - [Smartwebs Solutions Home](https://solutions.smartwebs.com/) - [Contact Us](https://share.hsforms.com/2VBrljHAiSeCkcUy_-IEe_Aq0yoc) - [Manage Tickets](https://support.smartwebs.com/tickets-view) - English - United States Show submenu for translations - [Contact Us](https://share.hsforms.com/2VBrljHAiSeCkcUy_-IEe_Aq0yoc) [Contact Us](https://share.hsforms.com/2VBrljHAiSeCkcUy_-IEe_Aq0yoc) How can we help you? - There are no suggestions because the search field is empty. 1. [Smartwebs Solutions](https://solutions.smartwebs.com/en-us/smartwebs-solutions?hsLang=en-us) 2. [Accounting](https://solutions.smartwebs.com/en-us/smartwebs-solutions/accounting?hsLang=en-us) 3. [Security Deposits](https://solutions.smartwebs.com/en-us/smartwebs-solutions/accounting?hsLang=en-us#security-deposits) July 21, 2026 # User Guide - Security/Construction Deposits, Refunds, and Forfeitures ## This guide explains how to manage refundable deposits within the system, including common use cases like architectural projects and amenity rentals. It covers the full deposit lifecycle—from recording and tracking funds to issuing refunds or applying forfeitures when necessary. ### **Purpose** #### Associations often need to collect refundable deposits in a variety of situations. Common examples include architectural projects—such as new home construction or pool installations—where heavy machinery may pose a risk of damage to community property like roads or common areas. Deposits may also be required for amenity or pavilion rentals to ensure proper use and coverage for any potential damages. #### This guide walks through the full lifecycle of these deposits within the system, including how to properly record and track deposits, process refunds to homeowners or builders, and handle situations where deposits are forfeited to the association. ### **Security Deposit Settings** To set up your Security/Construction Deposit bank account and Income GL: 1. Navigate to **Accounting \> Settings \> Default GL Codes** 2. Select the **Edit** button 3. Complete the following fields: - **Security Deposit Bank Account:** Select the GL for the bank account where all security deposits will be deposited - **Security Deposit:** Select the GL where the income will be recorded 1. Select **Save** ![image.png](https://content.api.getguru.com/files/view/1a699754-4e15-48c1-99a0-cfe50ce283e8) ### **Adding a Security Deposit** 1. Navigate to **Accounting \> Receivables \> Homeowners** 2. Search for the unit 3. From the **Options** menu, select **Receive Payments** ![image.png](https://content.api.getguru.com/files/view/a06d3d13-83da-4fd8-9be1-ac9e98ee9fca) - You can also access the Options menu from within the homeowner drawer - Deposits can also be added in bulk by navigating to Accounting \> Receivables \> Deposits & Payments 4. Select the **Security Deposits** tab 5\. Complete the following fields: - **Bank Account to Create a Deposit:** Confirm this is the correct bank account - **Deposit Date:** Enter the date of the deposit - **Single Check #:** Select if one check will be applied to multiple units - **Subledgers:** Select the appropriate subledger, or leave as *Assessments* if not in use - **Unit:** Search for and select the unit - **Cost Center:** Confirm the cost center is correct - **Amount:** Enter the deposit amount - **Check #:** Enter the check number - **Project:** Select an architectural project if applicable; otherwise leave blank - **Memo:** Optional field (e.g., third-party payee name) - Select **Save** ![image.png](https://content.api.getguru.com/files/view/14bc1f6b-1604-4d64-a0c2-d89931ca245e) ### **Reversing and Voiding Security Deposits** Navigate to **Accounting \> Receivables \> Homeowners** Search for the unit and open the drawer Select the **Security Deposit** tile to view all deposits for the unit ![image.png](https://content.api.getguru.com/files/view/1b07a535-2373-486f-8580-efcf8c1563e7)     From the **Options** menu: - Select **Reverse** to show the in/out of the deposit, or - Select **Void** to hide both the original transaction and the void ![image.png](https://content.api.getguru.com/files/view/b1625e37-507d-4d8a-b8ab-f751973f0f0a) Select the reversal/void date Enter a reason Select **Reverse** or **Void** ![image.png](https://content.api.getguru.com/files/view/d003bbbc-910d-404e-80de-acd03edd41a7)     ### **Refunding Security Deposits** 1. Navigate to **Accounting \> Receivables \> Deposits & Payments** 2. Select **Security Deposit**, then click **Refund** ![image.png](https://content.api.getguru.com/files/view/7274fcbe-9c74-4c89-bcf7-4650140cc827) Complete the following fields: - **Unit:** Search for and select the unit - **Security Deposit:** Select the deposit being refunded - **Cost Center:** Auto-populates from the original deposit (not editable) - **Refund Date:** Enter the refund date - **Type:** Select how funds will be returned (Check or Cash) - **Available Amount:** Displays the deposit amount - **Amount:** Enter the refund amount (less any forfeited portion) - *Example: If $200 is forfeited from a $1,000 deposit, enter $800* - **Description:** Optional field - Select **Submit** ![image.png](https://content.api.getguru.com/files/view/da7f2bac-5837-40cd-8d7d-686ec3d11bb2)   ### **Printing the Refund Check** 1. Navigate to **Accounting \> Payables \> Checks** 2. Select the **Bank GL Account** tied to security deposits 3. Select the check(s) to print 4. Click **Print Selected Checks** ![image.png](https://content.api.getguru.com/files/view/aecdfb3f-9096-4d46-9985-216a47b332f1) 5. Confirm the check number and position, then select **Print** ![image.png](https://content.api.getguru.com/files/view/268b2970-ac14-4803-a009-16d4ced92e93) 6. Select **Open** ![image.png](https://content.api.getguru.com/files/view/e116caa1-4098-4da6-b9af-142c76d42e1b) 7. Review the check and print 8. Return to the system and select **Yes** if the check printed correctly ![image.png](https://content.api.getguru.com/files/view/a5c9590e-cea7-44e3-8fa9-1a962a7e9f22) Once complete, the Security Deposit tile will update to reflect the remaining balance. ![image.png](https://content.api.getguru.com/files/view/196d4294-bcab-40e2-b391-fe238e080bae)     ![image.png](https://content.api.getguru.com/files/view/eccbc8a4-f64c-4d25-be2d-559c6f4d23c7)     ### **Forfeiting All or Partial Security Deposits** 1. Navigate to **Accounting \> Receivables \> Deposits & Payments** 2. Select **Security Deposit**, then click **Forfeit** ![image.png](https://content.api.getguru.com/files/view/413ca3c0-28eb-44dd-9056-2506c5ab0b71) Complete the following fields: - **Unit:** Search for and select the unit - **Security Deposit:** Select the applicable deposit - **Cost Center:** Auto-populates from the original deposit (not editable) - **Forfeit Date:** Enter the forfeiture date - **Forfeit to GL Account:** Select the Income GL - **Transfer to Bank:** Select the bank account where funds will be transferred - **Available Amount:** Displays the remaining deposit balance - **Amount:** Enter the forfeited amount - **Description:** Optional (e.g., reason for forfeiture) - Select **Submit** ![image.png](https://content.api.getguru.com/files/view/a3489858-560d-4484-8ea3-df7134482e9f) ### **Journal Entries** ![image.png](https://content.api.getguru.com/files/view/85875ee2-4542-4253-b10e-d982ac39decc)   ***End of Guide*** - [Accounting](https://solutions.smartwebs.com/en-us/smartwebs-solutions/accounting?hsLang=en-us#main-content) - [1099's](https://solutions.smartwebs.com/en-us/smartwebs-solutions/accounting?hsLang=en-us#1099s) - [General](https://solutions.smartwebs.com/en-us/smartwebs-solutions/accounting?hsLang=en-us#general) - [General Ledger](https://solutions.smartwebs.com/en-us/smartwebs-solutions/accounting?hsLang=en-us#general-ledger) - [Receivables](https://solutions.smartwebs.com/en-us/smartwebs-solutions/accounting?hsLang=en-us#receivables) - [Payables](https://solutions.smartwebs.com/en-us/smartwebs-solutions/accounting?hsLang=en-us#payables) - [Banking & Reconciliation](https://solutions.smartwebs.com/en-us/smartwebs-solutions/accounting?hsLang=en-us#banking-reconciliation) - [Configuration & Setup](https://solutions.smartwebs.com/en-us/smartwebs-solutions/accounting?hsLang=en-us#configuration-setup) - [Merchant Services](https://solutions.smartwebs.com/en-us/smartwebs-solutions/accounting?hsLang=en-us#merchant-services) - [Reports](https://solutions.smartwebs.com/en-us/smartwebs-solutions/accounting?hsLang=en-us#reports) - [Billing](https://solutions.smartwebs.com/en-us/smartwebs-solutions/accounting?hsLang=en-us#billing) - [Payments & Deposits](https://solutions.smartwebs.com/en-us/smartwebs-solutions/accounting?hsLang=en-us#payments-deposits) - [Homeowner Charges](https://solutions.smartwebs.com/en-us/smartwebs-solutions/accounting?hsLang=en-us#homeowner-charges) - [Statements](https://solutions.smartwebs.com/en-us/smartwebs-solutions/accounting?hsLang=en-us#statements) - [Collections](https://solutions.smartwebs.com/en-us/smartwebs-solutions/accounting?hsLang=en-us#collections) - [Security Deposits](https://solutions.smartwebs.com/en-us/smartwebs-solutions/accounting?hsLang=en-us#security-deposits) - [Administration](https://solutions.smartwebs.com/en-us/smartwebs-solutions/accounting?hsLang=en-us#administration) - [Administrative](https://solutions.smartwebs.com/en-us/smartwebs-solutions/administrative?hsLang=en-us#main-content) - [Owner Unit Management](https://solutions.smartwebs.com/en-us/smartwebs-solutions/administrative?hsLang=en-us#owner-unit-management) - [User Management](https://solutions.smartwebs.com/en-us/smartwebs-solutions/administrative?hsLang=en-us#user-management) - [Roles and Rights](https://solutions.smartwebs.com/en-us/smartwebs-solutions/administrative?hsLang=en-us#roles-and-rights) - [Email Notification Preferences](https://solutions.smartwebs.com/en-us/smartwebs-solutions/administrative?hsLang=en-us#email-notification-preferences) - [Satellite Offices](https://solutions.smartwebs.com/en-us/smartwebs-solutions/administrative?hsLang=en-us#satellite-offices) - [Reporting](https://solutions.smartwebs.com/en-us/smartwebs-solutions/administrative?hsLang=en-us#reporting) - [Document Management](https://solutions.smartwebs.com/en-us/smartwebs-solutions/administrative?hsLang=en-us#document-management) - [Security](https://solutions.smartwebs.com/en-us/smartwebs-solutions/administrative?hsLang=en-us#security) - [Letter Parameters](https://solutions.smartwebs.com/en-us/smartwebs-solutions/administrative?hsLang=en-us#letter-parameters) - [Zero Touch Mailing Service](https://solutions.smartwebs.com/en-us/smartwebs-solutions/administrative?hsLang=en-us#zero-touch-mailing-service) - [Association Setup](https://solutions.smartwebs.com/en-us/smartwebs-solutions/administrative?hsLang=en-us#association-setup) - [Vendor Management](https://solutions.smartwebs.com/en-us/smartwebs-solutions/administrative?hsLang=en-us#vendor-management) - [Email and Custom Domains](https://solutions.smartwebs.com/en-us/smartwebs-solutions/administrative?hsLang=en-us#email-and-custom-domains) - [Data Storage](https://solutions.smartwebs.com/en-us/smartwebs-solutions/administrative?hsLang=en-us#data-storage) - [Support](https://solutions.smartwebs.com/en-us/smartwebs-solutions/administrative?hsLang=en-us#support) - [Preferences](https://solutions.smartwebs.com/en-us/smartwebs-solutions/administrative?hsLang=en-us#preferences) - [HOA and Data Transfers](https://solutions.smartwebs.com/en-us/smartwebs-solutions/administrative?hsLang=en-us#hoa-and-data-transfers) - [Cancellations](https://solutions.smartwebs.com/en-us/smartwebs-solutions/administrative?hsLang=en-us#cancellations) - [Architecturals](https://solutions.smartwebs.com/en-us/smartwebs-solutions/architecturals?hsLang=en-us#main-content) - [Committee Member Guides](https://solutions.smartwebs.com/en-us/smartwebs-solutions/architecturals?hsLang=en-us#committee-member-guides) - [Board Member Guides](https://solutions.smartwebs.com/en-us/smartwebs-solutions/architecturals?hsLang=en-us#board-member-guides) - [Online Submit Forms](https://solutions.smartwebs.com/en-us/smartwebs-solutions/architecturals?hsLang=en-us#online-submit-forms) - [Arc Project Notifications](https://solutions.smartwebs.com/en-us/smartwebs-solutions/architecturals?hsLang=en-us#arc-project-notifications) - [Arc CCRs and Project Types](https://solutions.smartwebs.com/en-us/smartwebs-solutions/architecturals?hsLang=en-us#arc-ccrs-and-project-types) - [Arc Project Statuses and Expirations](https://solutions.smartwebs.com/en-us/smartwebs-solutions/architecturals?hsLang=en-us#arc-project-statuses-and-expirations) - [Arc Letters](https://solutions.smartwebs.com/en-us/smartwebs-solutions/architecturals?hsLang=en-us#arc-letters) - [Arc Admin, Settings, and Reports](https://solutions.smartwebs.com/en-us/smartwebs-solutions/architecturals?hsLang=en-us#arc-admin-settings-and-reports) - [Arc Projects](https://solutions.smartwebs.com/en-us/smartwebs-solutions/architecturals?hsLang=en-us#arc-projects) - [Arc Project Applications](https://solutions.smartwebs.com/en-us/smartwebs-solutions/architecturals?hsLang=en-us#arc-project-applications) - [Board and Committee Admin](https://solutions.smartwebs.com/en-us/smartwebs-solutions/board-and-committee-admin?hsLang=en-us#main-content) - [Meeting Minutes](https://solutions.smartwebs.com/en-us/smartwebs-solutions/board-and-committee-admin?hsLang=en-us#meeting-minutes) - [Communications](https://solutions.smartwebs.com/en-us/smartwebs-solutions/communications?hsLang=en-us#main-content) - [Mass Communications](https://solutions.smartwebs.com/en-us/smartwebs-solutions/communications?hsLang=en-us#mass-communications) - [Workflow](https://solutions.smartwebs.com/en-us/smartwebs-solutions/communications?hsLang=en-us#workflow) - [Security](https://solutions.smartwebs.com/en-us/smartwebs-solutions/communications?hsLang=en-us#security) - [General](https://solutions.smartwebs.com/en-us/smartwebs-solutions/general?hsLang=en-us#main-content) - [Frequently Asked Questions](https://solutions.smartwebs.com/en-us/smartwebs-solutions/general?hsLang=en-us#frequently-asked-questions) - [Lifestyle](https://solutions.smartwebs.com/en-us/smartwebs-solutions/lifestyle?hsLang=en-us) - [Mobile Applications](https://solutions.smartwebs.com/en-us/smartwebs-solutions/mobile-applications?hsLang=en-us#main-content) - [Offline App](https://solutions.smartwebs.com/en-us/smartwebs-solutions/mobile-applications?hsLang=en-us#offline-app) - [Portal App](https://solutions.smartwebs.com/en-us/smartwebs-solutions/mobile-applications?hsLang=en-us#portal-app) - [Mobile Online App](https://solutions.smartwebs.com/en-us/smartwebs-solutions/mobile-applications?hsLang=en-us#mobile-online-app) - [iOS Devices](https://solutions.smartwebs.com/en-us/smartwebs-solutions/mobile-applications?hsLang=en-us#ios-devices) - [Android devices](https://solutions.smartwebs.com/en-us/smartwebs-solutions/mobile-applications?hsLang=en-us#android-devices) - [FAQ](https://solutions.smartwebs.com/en-us/smartwebs-solutions/mobile-applications?hsLang=en-us#faq) - [Release Notes](https://solutions.smartwebs.com/en-us/smartwebs-solutions/release-notes?hsLang=en-us#main-content) - [Office Site Releases](https://solutions.smartwebs.com/en-us/smartwebs-solutions/release-notes?hsLang=en-us#office-site-releases) - [Application Releases](https://solutions.smartwebs.com/en-us/smartwebs-solutions/release-notes?hsLang=en-us#application-releases) - [Resident Portal](https://solutions.smartwebs.com/en-us/smartwebs-solutions/resident-portal?hsLang=en-us#main-content) - [Resident Guides](https://solutions.smartwebs.com/en-us/smartwebs-solutions/resident-portal?hsLang=en-us#resident-guides) - [Admin Guides](https://solutions.smartwebs.com/en-us/smartwebs-solutions/resident-portal?hsLang=en-us#admin-guides) - [Violations](https://solutions.smartwebs.com/en-us/smartwebs-solutions/violations?hsLang=en-us#main-content) - [Frequently Asked Questions](https://solutions.smartwebs.com/en-us/smartwebs-solutions/violations?hsLang=en-us#frequently-asked-questions) - [Violation Letters](https://solutions.smartwebs.com/en-us/smartwebs-solutions/violations?hsLang=en-us#violation-letters) - [Violation CCRs](https://solutions.smartwebs.com/en-us/smartwebs-solutions/violations?hsLang=en-us#violation-ccrs) - [Violation Policies](https://solutions.smartwebs.com/en-us/smartwebs-solutions/violations?hsLang=en-us#violation-policies) - [Mapping Units in Smartwebs](https://solutions.smartwebs.com/en-us/smartwebs-solutions/violations?hsLang=en-us#mapping-units-in-smartwebs) - [Setup and Configuration](https://solutions.smartwebs.com/en-us/smartwebs-solutions/violations?hsLang=en-us#setup-and-configuration) - [Reporting](https://solutions.smartwebs.com/en-us/smartwebs-solutions/violations?hsLang=en-us#reporting) - [Work Orders](https://solutions.smartwebs.com/en-us/smartwebs-solutions/work-orders?hsLang=en-us#main-content) - [Work Order Management](https://solutions.smartwebs.com/en-us/smartwebs-solutions/work-orders?hsLang=en-us#work-order-management) - [Vendor Management](https://solutions.smartwebs.com/en-us/smartwebs-solutions/work-orders?hsLang=en-us#vendor-management) - [Flyers](https://solutions.smartwebs.com/en-us/smartwebs-solutions/flyers?hsLang=en-us#main-content) - [Lifestyle](https://solutions.smartwebs.com/en-us/smartwebs-solutions/flyers?hsLang=en-us#lifestyle) - [Resale](https://solutions.smartwebs.com/en-us/smartwebs-solutions/resale?hsLang=en-us) # Smartwebs 1015 S Mays St, Round Rock, TX 78664 [512-218-9996](tel:512-218-9996) [mailto:support@smartwebs.com](mailto:support@smartwebs.com) Copyright © 2026, Smartwebs