How to Handle Deposits Already Held by a Custodial Scheme (Xero Users)

This is for tenants whose deposits have been collected and are held in a custodial scheme prior to the setting up of your Arthur account.

Step 1: Create an Analysis Code

Create an analysis code that allows you to track previously held deposits as the existing ‘Registered Deposit Receipt’ is not suitable. To add an analysis code:

Financials > Analysis Codes > Add Analysis Code.

Xero Account – The Custodial Scheme you set up in Xero. Explained in this article

Type – Charge

Debit or Credit – Credit

Paid to/by – Tenant

Default VAT – Not Applicable

Statements – Tenancy Deposit Statement

Step 2: Adding the transaction into Arthur

Select the relevant tenancy “Add Transaction” and ensure the Transaction Type is set to “Registered Deposit Charge”.

Choose the date you initially invoiced the tenant for the deposit.

Now, we need to add the analysis code we just created. Again, this is done through Add Transaction and use the analysis code you recently created.

Set the transaction to the date the deposit was received.

Step 3: Allocating the transaction

Before allocating the transaction make sure you are in the Tenant Deposit Statement.

After you have created the analysis code and added it to the tenancy, allocate the transaction in the Tenancy Deposit Statement. This will pay it off.

Now you can sync with Xero. The deposit account you set up in Xero will be credited that amount

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