Managing a New Bond/Deposit Invoice

  • Updated

For our users in different regions, the terminology used for bonds or deposits may vary. In North America, these are commonly referred to as "Security Deposits". To ensure clarity, we will use "Bond" throughout this article. For more information on regional terminology, please visit our Glossary of Regional Terminology.

This article provides a step-by-step process for creating a new Bond Invoice within the tenancy file. This is necessary when a bond is paid at the beginning of a tenancy and is meant to be held for its duration. We’ll also show you how to load an existing bond. This article is also applicable when you need to invoice for a Bond Increase.


Creating a Bond Invoice

To create a new Bond Invoice in the tenancy file, please follow these steps:

  1. Open the Tenancy and navigate to the Bonds tab.
  2. Click on the New Bond Invoice button.
  3. Select where the bond will be held during the tenancy. Important: If an incorrect selection is made, you must void the invoice and create a new one after saving and approving.
  4. Fill in the details, set the due date for the invoice, and choose the Chart of Account code. The code for liabilities is typically known as 720 - Bonds.
  5. Enter the amount for the bond invoice.
  6. Choose the appropriate invoice status.

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Reconciliation of Payments Against Bond Income Invoices

Once you've created a Bond Invoice, you can reconcile funds to it in the same manner as you would reconcile rent or other payments. If the payment is to be held by a third-party authority or the property owner, it will be reflected on the Bonds page following the processing of a disbursement. Subsequent actions are initiated depending on the designated holding location of the bond. Below, we outline the various holding options and the actions each will trigger:


Held in the Bond Ledger

  • The reconciled funds are entered into the bond ledger.
  • The tenancy bond screen updates the status to 'Lodged'.

Held by a Bond Authority

  • The reconciled funds are also entered into the bond ledger.
  • The tenancy bond screen indicates the status as Ready to disburse to Authority.
  • You will then need to disburse the funds from the trust account to the bond authority. This action generates an expense invoice to release the funds from the bond ledger.
  • Post-disbursement, the tenancy bond screen updates to Disbursed (awaiting reconciliation).
  • Once the disbursement reconciles with the bank statement spent amount, the tenancy bond screen will finally reflect the status as Lodged.

Held by the Property Owner

  • Upon reconciliation, the funds go into the bond ledger just like the other scenarios.
  • An immediate transfer is made from the bond ledger to the property default ledger.
  • The tenancy bond screen displays the bond as Lodged.
  • During the next disbursement to the owner, the bond will be included in the payment and be visible on any generated statement.


Editing the Bond Record

If there's a need to edit the Bond record or add a lodgement reference:

  1. Go to the Bonds tab within the Tenancy.
  2. Select the Contextual Menu [...] option to edit the reference.
  3. Update the Bond record as necessary.

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Load an Existing Bond

This process is crucial for tracking bonds that are previously lodged and currently held, ensuring they are noted on the tenancy. You would use this option for bonds that are already lodged and in existence. This is to make note of them on the tenancy but it will not make any financial transactions/postings

  1. Start by clicking the Load Existing Bond option against the Bonds tab of the Tenancy. 
  2. In the prompted fields, specify where the bond is currently held:
      • Bonds Ledger: Choose this option if the bond is in your bonds ledger within the trust account.
      • Bond Authority: Select this if a third party holds the bond. You will need to pick the appropriate Bond Authority from your contacts.
      • Property Owner: Use this if the property owner holds the bond.
  3. Enter the current balance of the bond to reflect the accurate amount that has been lodged.
  4. Provide a Lodgement Reference, if available, for your own record-keeping.
  5. Click Continue to complete the process of loading the existing bond into your system.


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By following the outlined steps, you can efficiently handle the bond process and ensure that all financial transactions are recorded accurately and securely.


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