Deposits are revenue items that can be posted to a customer’s bill to ensure that tax is accounted for at the time of payment (if your legal environment requires it). Not sure if deposits are right for you? Learn more about how deposits work.

Note: When you use deposits to account for tax on a prepayment, the system records that prepayment as revenue. If you don't want to recognize revenue at time of payment, you should not count deposits when calculating revenue.

Set up deposits

Set up accounting categories

  1. Create accounting categories for your deposits. To properly track deposits, you need to create one accounting category for positive deposits and one for negative deposits.
  2. Go to Main menu > Settings > Services.
  3. Click on your stay service.
  4. Under Accounting, set the Positive deposit accounting category and Negative deposit accounting category fields.
  5. Click Save.

Choose how deposits are displayed on bills and invoices

  1. Go to Main menu > Settings > Property.
  2. From the Settings menu on the left, click Accounting configuration.
  3. Under Options, you can select Separate deposits on bills.
    - If you select this option, deposits will be separated on bills and invoices from items and payments.
    - If you don't select this option, deposits will be included with bill items.
  4. Click Save if you made any changes.

Using deposits

Turn on automatic deposit settlement

If you're legally required to account for tax at the time of payment, we recommend turning on automatic deposit settlement.

  1. Go to Main menu > Settings > Services.
  2. Click on your stay service.
  3. Click Rate groups.
  4. Click on an existing rate group to turn on automatic deposit settlement for that rate group, or create a new rate group.
  5. Under Options, select Automatic deposit settlement.
  6. Click Save.
  7. Repeat steps 1-6 for all rate groups that you want to have an automatic deposit settlement.

Manually create a deposit

If you don’t have the automatic deposit settlement turned on for all of your rate groups, you can manually create deposits.

  1. Open the Reservation Module.
  2. Go to the Items tab.
  3. Under Additional expenses, click New deposit.
  4. Enter the price of the reservation.
  5. Select the tax rate you want to be applied to the revenue.
  6. Click Create.

Note: If a customer has paid a deposit, and then cancels their reservation at a later date, the consumption time of the negative deposit will be changed to the same time as when the reservation was canceled.

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