If a referral is made to a third party that is not a licensed Agent or Brokerage you will be using the "Payable" deduction accessible through the deductions menu. 

Most users set this up as a payable type and name it "Third Party Referral". This will distinguish it from the workflow for licensed parties. 

Licensed Agents or Brokers need to be added to the people page and given an allocation of the commissions for the transactions. See This article for details

To add an pay out a third party follow these steps;

  1. Ensure there is a Brokerage template deduction set up for third party referrals
  2. On the deductions page in the deal select "New" and "Third Party Referral"

3. Enter the name of the payee, the dollar or percentage applied and hit save to recalculate the balance payable to the agent. 

You can then post the payout to the agent as usual un the payout commissions tab and you will see 2 resulting "Bills Awaiting Payment" in Xero. One for your agent and one for the Payee named in the deduction line. 

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