Holding deposits can either be treated the same as any other cashflow type or they can be treated as overpayments. If they are treated the same as other cashflow types then they can be invoiced and the invoice is then sent to Xero as normal. But if they are treated as overpayments then they cannot be invoiced, instead when they are marked as paid in Accelerate an overpayment is sent to Xero. This overpayment can then be allocated to another invoice, marked as refunded or both within Xero. This would reflect the cashflow transfer and refund functionality in Accelerate.
If you want to allocate a default Xero account code to Holding Deposit type cashflows but you want them to be treated as normal then you can create a Cashflow Type Account Code Link record, ensuring that you specify the Transaction Type as Invoice:
However, if you want Holding Deposits to be treated as overpayments in Xero then you should create a Cashflow Type Account Code Link record and specify the Transaction Type as overpayment:
Once you have a paid Holding Deposit in Accelerate, if you edit that cashflow you can click the 'Send To Xero' button to create the overpayment in Xero:
As with sending invoices, if you have not previously linked the relationship to a Xero contact then you will be prompted to do so at this stage. Once the overpayment has been sent it will be visible against that contact in Xero.
Note: This functionality is not limited to Holding Deposit type cashflows and the transaction type Overpayment can be allocated to any cashflow type through creating a link between the cashflow type and Xero account code.
If you have sent the Holding Deposit to Xero as an overpayment, then when you transfer the deposit to a cashflow or you refund the deposit, this will also be reflected in Xero. When transferring the deposit to an unpaid cashflow, so that it is paid, you will need to have invoiced that cashflow and sent it to Xero for the transfer to be reflected in Xero. If you do a cashflow transfer to fully pay the invoice then the invoice will automatically be flagged as paid in Xero.