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Deposit refund - separate deposit account (UK only)

Deposit refund - separate deposit account (UK only)

This guide has been reviewed against our global client base and classed as relevant to UK only

If you are not using a separate deposit account when refunding a deposit, use this guide instead: https://reapit.atlassian.net/wiki/x/QwClPw

This article outlines the process for refunding a deposit when using a separate deposit account

1. Access Manage Deposit screen

From the tenancy:

  • In the Accounts panel, click Manage (beside Deposit field)

    Tenancy - manage deposits link.png

  • In the Refunds panel, click Refund Deposit

    Deposit screen - bottom.png

2. Tenant refunds screen

A list of outstanding invoices and any deposit money available for refund is displayed

  • If there are deductions to be made for damages or other reasons, click Create a charge for damages etc. (top right)

    • Enter the Amount and Description, click Accept

  • Click Post

    • This creates the transactions and also a payment if there is an amount due to be released to the tenant - see next steps

Tenant Refunds.png

As the deposit is being held in an account separate to the client account, a transfer payment needs to be raised to move the money back to the client account

The deposit must be cleared as ‘money in’ to the client account before the tenant repayment (or any supplementary payments) will be marked as cleared and available to pay from the BACS and Cheque Run screen

See next steps for more information

3. Deposit release transactions

On tenancy transactions, 3 entries are created related to deposit release:

  • Tenant deposit repayment

  • Transfer deposit to client account

  • Transfer deposit from deposit account

This is due to the deposit being held on a separate account - to make funds available for a refund, a transfer must first be made between the deposit account and the client account 

Funds can only be refunded via the client account, they cannot be refunded directly from the deposit account

4. BACS and Cheque Run

On the BACS and Cheque Run - there are two transactions relating to the deposit refund:

  • Transfer from deposit account (£2354.00)

  • Tenant deposit repayment (£654.00)

    • This will show as un-cleared funds until money is transferred from the deposit account to the client account - this must be cleared as money in to the client account before a refund can be made

The BACS file can now be prepared and uploaded

7. Bank Reconciliation - both accounts

In Bank Reconciliation, corresponding entries can be seen in the deposit and client bank accounts, as follows:

  • Deposit Bank Account - Money Out

  • Corresponding entry in the Client Bank Account - Money In

Deposit Bank Account

Client Bank Account

When these two entries are cleared in the bank accounts, they can then be reconciled and the deposit refunded

8. Import the deposit account bank statement

From Bank Reconciliation:

  • Click Import (top left)

9. Reconcile

  • Tick the relevant entries

  • Click Post to reconcile

10. Receipts from Statements

In the Receipts from Statements routine:

  • Click Import Statement (top right) to import your client account bank statements

Do not post this entry anywhere

11. Bank Reconciliation

In Bank Reconciliation:

  • Tick the relevant entries

  • Click Post to reconcile

Deposit funds can now be paid from the BACS and Cheque Run

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