Rent Logger

Help

Xero liability account

The liability account is where Xero holds the principal. Set it up on the loan’s Xero tab before the loan is activated. A monthly payment later reduces that account. Setting the account up is a different step from recording a payment.

1. Open liability setup

Each loan has its own liability account.

In the app

  1. Finance
  2. Loans & Mortgages
  3. Xero
  4. Set up liability account
  • The loan stays a draft until the Xero readiness steps are finished and you activate it.
  • Choose the accounting allocation on the same tab. See Accounting allocation.

2. Create or choose an account

Create a current or non-current liability, or choose an account that already exists in the Xero chart. Rent Logger shows the Xero balance next to the Rent Logger principal so you can see whether they already agree.

  • Use a dedicated account for the loan when you can, so later payments reduce the right balance.
  • Creating the account does not by itself post the opening principal.

3. The balance is already in Xero

For a historical loan whose principal is already in Xero, choose Save the account. Tick This loan is already included in that Xero balance. No journal is created.

  • If the figures differ and you still want to leave them, choose Save the account and do not post and leave the difference unresolved. It stays visible as review required.
  • Transfer into this account and Opening balance are for a difference you have decided to post. The amount you enter is the amount posted. A difference in the totals does not post by itself.

4. The funds never reached your bank

When a new loan bought a property and the money went straight to the solicitor, choose New loan funding and set Where the money went.

  • Paid to the solicitor records the funds against the solicitor clearing account.
  • Property, only if the purchase is not already recorded is for a purchase that is not yet in the accounts. If the acquisition is already recorded, tick The acquisition is already recorded and leave the property out of this posting.
  • Received in the paying bank is for money that did arrive. Look for an existing Xero receipt links a receipt that is already there, so a second receipt is not created.
  • Refinance of another liability moves the balance from the old liability. A fee kept by the lender can be entered on the same funding step.