Rent Logger

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Accounting allocation

Accounting allocation decides how interest and charges are tagged in Xero. Principal stays untagged in every case. Payments stay in Rent Logger until an allocation is chosen.

1. Why allocation matters

A confirmed payment can post as Spend Money. Interest and fees follow this choice so property reports in Xero pick up the finance cost. The principal line reduces the liability account and carries no property tracking tag.

In the app

  1. Finance
  2. Loans & Mortgages
  3. Xero
  4. Accounting allocation
  • The liability account is set on the same tab. See Xero liability account.
  • Not set and Ask my accountant both hold posting until you choose an allocation.

2. Choose an allocation

  • One property tags interest and charges to that property.
  • Several properties splits interest and charges equally and tags each property.
  • General portfolio or business posts with no property tracking tag.
  • Private or non-business posts with no property tracking tag.
  • Do not apply tracking posts with no property tracking tag.
  • Ask my accountant holds Xero posting until a real choice is made.

3. What is tagged

On a posted payment, the lines are split by what they are for.

  • Interest goes to the mortgage interest account and follows the allocation.
  • Fees and early repayment charges go to finance charges and follow the allocation.
  • Principal reduces the liability account and stays untagged.
  • An estimated split can be saved in Rent Logger. Posting to Xero waits until The lender confirmed this split is ticked. See When a payment is due.