How to Handle Deposits held in an Insured Scheme (Xero Users)

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

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

 

Lastly, coming to the end of the tenancy, the deposits must be refunded to the tenants. Below is the process of doing this:

Refunding the Deposit

Initially, the deposit needs to transfer back into the main tenant account in preparation for its return. This is created in Arthur using the “Add Transaction” within the tenancy, and use transaction type “Deposit Transfer to Rent Account”

Dealing with disbursements

Note: Ignore this step if there are no deductions to the tenant.

Enter a transaction e.g. sundry charge or disbursement depending on what you’re deducting. This will decrease the amount owing to the tenant.

Remitting to the tenant

This is done in the ‘Close tenancy’ function within the tenancy screen in Arthur. Select More > Close Tenancy. At the point of closing the tenancy you will be prompted to enter a bank account from where the refund is coming from. You will choose the account the refund is paid out from.

Reconciling in Xero

Go to Xero Reconciliation page and match the refund to the spent bank transaction.

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