How to Account for Registered Deposits (Xero Users)

This article is for Xero users only. If you do not use Xero, please see Accounting for Registered Deposits in Arthur.

Step 1: Create the Registered Deposit Charge in Arthur

On the tenancy, add a transaction with the transaction type Registered deposit charge. This will create the charge in the tenant deposit statement (filter statement). 

Select Save Transaction and conduct a synchronisation between Arthur and Xero

add-transaction-xero-users

Step 2: Reconcile the Registered Deposit Charge

Go into your Xero’s bank reconciliation page and reconcile the bank line with the relevant deposit invoice posted by Arthur

xero-bank-page

*Only Proceed to Step 3 & 4 if your deposits are held in a custodial scheme.*

Step 3: Creating a custom account in the Chart of Accounts for your custodial scheme (if done already skip to step 4)

Step 4: Transferring to the Custodial Scheme

Once you conduct a bank transfer to the custodial scheme (in real life), you will be met by a spent item in Xero.

xero-spent-item

From here, you would select Create and fill in the fields as follows;

  • Who: The Custodial Scheme
  • Why: A description to make it clear who the deposit originally belongs to
  • What: Your newly created account in the Chart of Accounts

Step 5: Refunding the tenant

With regards to returning the deposit follow either of these two guides;

  1. The custodial returns the deposit directly to the tenant
  2. The custodial returns the money to you, and you then refund the tenant

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