AR Deposits for Travel Agencies

Record money a travel agency pays in advance, or give it credit for the unused part of a stay.

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Business Value

• Keeps every agency advance on its AR account.
• Deducts advances automatically when Front Office invoices are verified.
• Gives the agency credit when a guest leaves early.
• Shows clearly what the agency still has to pay.

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Use Cases

• A receivable clerk records a deposit from an agency for next month’s bookings.
• A cashier credits a tour operator for the night a guest did not stay.
• An accountant checks an agency’s open balance and sees the credit beside the invoice.

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How It Works

There are two cases:

• Advance deposit: the agency pays before its guests arrive. You record it in Back Office.
• AR Deposit from billing: a guest leaves early, and the agency gets credit for the unused nights. You do it from the reservation’s billing.

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Record an Advance Deposit

1. Click Deposit.
2. Select the department (transaction code) for travel agency deposits.
3. Enter the deposit amount.
4. Select the transaction date.
5. Optional: add a comment. It shows in your reports.
6. Click Save.

On the open balance screen:

• Deposits have no invoice number.
• Advance deposits are deducted automatically. This happens when receivable clerks verify Front Office invoices paid to city ledger.

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Credit the Unused Part of a Stay

Example: Fly Tours books a 3-night stay for 450 USD (150 USD per night). The guest leaves after the 2nd night. The remaining 150 USD becomes credit for Fly Tours. First, create a payment method (credit department) for AR deposits.

1. Select the credit department for deposits.
2. Enter the amount to credit to the agency.
3. Optional: enter a comment.

4. Settle the invoice with City Ledger Payment. The agency gets credit for what is left.

In Accounts Receivable, the invoice paid to city ledger is 450, with a separate credit of 150. The agency needs to pay only 300.