Processing Deposit Refunds

Initiating a Deposit Refund

When a tenancy ends and deposits need to be returned:

1. Navigate to the deposit details page
2. Click Add refund/transfer
3. You'll see a summary of the deposit information (Reference, Property, Tenancy, Interest accrued, Agreed amount)
4. Choose one of the following options:
   • Prepare new refund invoice: Create a new refund document
   • Search for existing invoice: Link the refund to an existing invoice
5. Click Add deposit refund/transfer to proceed

Creating a Refund Invoice

When preparing a new refund invoice:

1. The system will display the deposit summary information
2. Review the Outstanding invoices section showing any unpaid invoices for this tenancy
3. Check the Unallocated credit notes section for any available credits
4. Review the Deductibles section showing any deductions
5. The system automatically calculates:
   • Received amount: The original deposit amount
   • Arrears: Any outstanding rent or charges
   • Deductibles: Total deductions
   • Existing refunds/transfers: Any previous partial refunds
   • Refundable amount: The final amount available for refund (may be negative if arrears exceed deposit)
6. Click Start refund invoice to generate the refund document

Note: If the refundable amount is not more than 0, you will not be able to create a refund invoice.

Understanding Refundable Amount Calculations

The system calculates the refundable/transferable amount as follows: Refundable Amount = Deposit Received - (Arrears + Deductibles + Previous Refunds/Transfers)

Where:

• Deposit Received: The original deposit amount paid by the tenant
• Arrears: Any outstanding rent or charges from unpaid invoices
• Deductibles: Deductions for damages, cleaning, etc.
• Previous Refunds/Transfers: Any earlier partial refunds or transfers

If the calculated amount is negative, this indicates the tenant owes money beyond the deposit amount.