Lifecycle of an Advanced Deposit
This article will guide you through the entire cycle of an advance deposit, starting from posting the deposit, transferring it to the guest's folio upon check-in, and concluding with the cancellation and refund processes. It will also cover how these actions impact your reports.
Posting the Advance Deposit
Scenario: A guest books a room and is required to make an advance deposit to secure the reservation.
Outcome: The guest’s reservation is now secured with an advance deposit, and the payment is reflected in the guest's Advanced Deposit Details and will be transferred to the guest's folio as a prepayment once the reservation is checked into the system.
Voiding an Advanced Deposit
Scenario: A guest makes an advance deposit to secure a reservation, but due to an error, the deposit is posted twice in the system. To correct this mistake, you need to void one of the duplicate advance deposits.
An advanced deposit can be voided in the deposit details of the reservation as long as it has not yet transferred into the guest's folio or settled in the daily credit card batch.
Outcome: The duplicate deposit is successfully voided, ensuring that the guest is not overcharged. The guest's folio reflects the correct deposit, and financial records remain accurate. There is no financial impact on the guest, and the reservation continues with the correct deposit amount.
Cancellation of Reservation with Advance Deposit
Scenario: The guest cancels their reservation before their stay, and you need to handle the deposit.
The "Forfeit Advance Deposit" accounting code is used to offset any Advance Deposit code that is not refunded when a reservation is canceled. Set up as a "Revenue" code, it must be assigned a revenue sub-category. By default, this code is assigned to the "Room" sub-category. If you need to unassign this amount from the Room Revenue, you can change the sub-category. However, a sub-category must be assigned to avoid potential balance discrepancies in other reports.
Outcome: If the deposit is forfeited, it remains in the folio as a forfeited deposit. If the deposit is refundable, proceed with the refund process.
Refunding the Advance Deposit
Scenario: Whether the guest is eligible for a refund after cancellation, or the advance deposit needs to be returned.
The 7T code serves as a mechanism employed by Visual Matrix for shifting an Advance Deposit from the Advance Deposit City Ledger Balance to the Guest Folio on the Guest Ledger Balance. It's important to note that this code lacks a voiding option, and any inadvertent use of it could disrupt the balance of the Guest Ledger. The sole method to "remove" a 7T entry is by offsetting it with the posting of its corresponding counterbalance.Outcome: The guest receives the refund, and the reservation is updated to show the cancellation and refunded deposit as the system sends out a cancelation confirmation letter.
Viewing and Auditing Advance Deposits
Scenario: You need to review the advance deposit transactions for a specific guest or audit deposits for multiple reservations.
Outcome: You can track all advance deposit transactions, ensuring accuracy and completeness for financial reporting.
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