How to Refund with Xero

Modified on Wed, 20 Mar 2024 at 10:22 AM

Step 1

Find the tenancy where you wish to issue a refund to the tenant and then add a transaction via the tenant rent statement as shown on the image below; You must then enter the correct information regarding the refund as shown on the below diagram. If refunding rent the transaction type will vary between a "rent charge"and a "direct rent";

  • Choose "Rent charge" if you are a Property Manager
  • Choose "Direct rent" if you are a self managing landlord.

If you are refunding anything other than rent you may select the relevant transaction type. Note: For a refund you must enter the Amount net with a minus (-) sign ahead of the amount you are going to refund. Refer to the image below!

add refund

Step 2

Once you have added this transaction, you need to synchronise your account. To do so, go to Financials > Go To Xero Screen > Synchronise

Step 3

You must now go to Xero and pay off this charge. To do so, sign into your Xero account. We must now locate the tenant we wish to refund the money to. On your Dashboard, click on Contacts > Tenants as shown on the image below.

 Image 7 

You must then select the tenant you want to refund to.

 Image 8

The following page is populated with tenant information. We would then click on the Credit Note number as we can see below.

 Image 9 

This will open up the credit note as we can see below. Add all of the relevant information as we can and click 'Add Refund'

 Image 10 

You have now completed your refund. Which can be reconciled against an expense on the reconciliation page.

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