Hi, Andy159. Setting up a liability account is the first step to tracking the security deposit amount. Let me guide you through the process.

To create a liability account, follow the steps below:

1. Go to the Gear icon and select Chart of Accounts.
2. Click New account.
3. Enter the name.
4. From the Account Type ▼ dropdown menu, select Other Current Liabilities.
5. From the Detail Type ▼ dropdown menu, select Trust Accounts - Liabilities.
6. Select a Default Tax Code, enter an Unpaid balance, and an as of date.
7. Click Save.

Second, let's create a service item called Security Deposits. Here's how:

1. Go to the Gear icon and select Products and services in the Lists column.
2. Click New and select Services.
3. Enter the name as Security Deposits, and under Income account, select the liability account we created.
4. Enter a Sales Price/Rate and select  Save and close.

Once you’ve set up the account and service item, you can choose how to record payments. You can use a sales receipt if you collected payment directly or an invoice if the payment is applied against an invoice. For in-depth guidance on record-keeping, you can refer to this helpful article: Record a retainer or deposit in QuickBooks Online.

While the steps above will help you get started, it’s always a good idea to consult with your accountant. This will ensure your books are accurate and the security deposits are properly accounted in QuickBooks.

If there's anything else I can assist you with, please don't hesitate to leave a comment below. We're here to help.