Xero does not have "Bonds" or "Hires". The closest accounting match to a 'Bond' in Xero is an Overpayment.

When you receive a Bond type payment in HirePOS, and attempt to export, an Overpayment record will be created in Xero, rather than an invoice payment.

Any other (non-bond) payments against the invoice in question will still be applied to the invoice directly as normal payments.

If you later refund the bond payment in HirePOS, a Bond Refund record will be available for export to Xero. This will be recorded as an Overpayment Refund in Xero.

In the case where you need to use part or all of the bond as payment against a new invoice (extra fees/damages) you must:

1. Create the additional invoice in HirePOS

2. Use the Payments > Receive Payments screen to offset the bond payment with the new invoice

3. Export the Invoice to Xero

4. Go to Xero and use the existing overpayment to pay the new invoice to the same value as you did in step 2.

If the customer has other outstanding invoices and you wish to apply an existing credit note

You should:

1. Go to the Payments > Receive Payments screen and select your customer.

2. Select the Negative Invoice/Credit Note, then the invoice(s) you wish to apply the credit to.

3. Then, in the amount received put in any additional amount received, or if you only wish to apply the credit, you'd click the Offset Credits Only button, which will only apply credit as per the screenshot.

   Remember, that if you aren't using the Xero Exporter, then Negative Invoices can be applied the same way as Credit notes with no issue.

If you are exporting to Xero, doing this will prevent you from exporting to Xero correctly.

If you are applying a negative balance from one invoice, to other invoices, you'll need to manually adjust the amount applied.

If you're applying to multiple Invoices, you'll need to calculate the values you need to use.

For example, if you're applying -$100 across two invoices, you'll change the "Applied" value to $50 for each Invoice.

Overpayments (like bonds) are not treated as revenue and do not attract tax.

The assumption in both cases is that either:

• The bond amount will eventually be returned to the customer

  • You are no longer holding the money, and it was never seen as 'income'

• An additional invoice will be raised for damages/refuelling fees/extended hire or similar, and the bond(overpayment) value will be used as a payment on that invoice.

  • The funds are now taxable as they apply to taxable goods and services.

  • The invoice creates additional revenue in your revenue account(s).