How to Account for Holding Deposits (Xero Users)

This article is used to Account for your Holding Deposits/Reservation fees as a Xero User.

Step 1: Locate the Holding Deposit in your Xero bank feed

Go into your Xero, and locate the holding deposit paid by the tenant. From here, select ‘Find and Match’

Step 2: Receive Money as an Overpayment

After you have selected ‘Find and Match’, select ‘New Transaction’ next to option 2 followed by ‘Receive Money’.

From here, select Overpayment

Step 3: Assign to the relevant tenant

Fill out the highlighted fields;

  • From – When you search the tenants name, you will have a choice to assign the overpayment to their Rent or Deposit ledger. Select, the ledger where you will use the holding deposit to pay. E.g. If the holding deposit contributes to the first months rent or admin fees select the rent ledger, if it contributes to the deposit then select the deposit ledger

  • Properties – Select the property the tenant occupies
  • Units – Select the unit that lies within the property

Once you have filled this in select “Reconcile” then synchronise the two systems

Step 4: Allocate to relevant charges

The Overpayment will now appear in the Arthur tenancy. You will now be able to allocate the credit to any invoices that generate. This is shown below

 

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