How to create an Accounts Receivable Deposit Entry?

Why should we use the AR Deposit Feature? In the scenario where we have an individual guest reserving through a travel agency/tour operator in which they have paid to your hotel a deposit in advance to the reservation. When the guest decides to leave your hotel in the middle of the stay, the remainder of the deposit should be given to the tour operator/travel agency as credit to be used against future bookings. Example: A 3-night reservation that was provided by Fly Tours “a local travel agency” with a total of 450 USD “150 USD per night” The guest decided to leave after the 2nd night and now the remaining 150 USD should be added to Fly Tours as credit for the future. How can we do this efficiently? First, a new payment method “credit department” should be created to accommodate the AR Deposit Scenario, Second, using the AR Deposit Feature, we create a charge with the remainder of the reservation. Front Office → Individual Reservations → Select a Reservation → Billing → Tools → AR Deposit Important Note: this feature won’t work if you are trying to use the AR deposit on a billing window that is not linked to an AR Account.

You will be directed to a Payment Dialogue to use the payment method you created for deposits:

Select the credit department for deposits.
Enter the amount of the remainder you would like to credit to the tour operator.
Optional: enter a comment for the transaction.

Now when you settle the invoice with City Ledger Payment, you are crediting the tour operator with the remainder of the invoice so that it could be used later.

Below is how it would look like from Accounts Receivable, the total of the invoice paid to city ledger is 450 in which there’s a credit of 150 added seperatly. Which indicates that the tour operator only needs to pay 300 only.

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