Customer Deposits

Customer deposits allow your dive center to collect advance payments from clients for future services. These deposits are properly recorded as unearned revenue until services are delivered, ensuring accurate financial reporting and helping you manage cash flow.

What You'll Learn

  • How to record customer deposits for dive trips, courses, and equipment rentals

  • How to view and manage all customer deposits

  • How to apply deposits to client bills when services are delivered

  • How to track deposit balances and status

  • How to handle deposit refunds if needed

Before You Start

Required Permissions:

  • To view deposits: Finance View permission (or Super Admin/Admin role)

  • To create/manage deposits: Finance Manage permission (or Super Admin/Admin role)

Prerequisites:

  • Your chart of accounts should include liability accounts for unearned revenue

  • Cash/bank accounts should be set up for different payment methods

  • Client records must exist before creating deposits

Accessing Customer Deposits

Navigate to Finance > Deposits in the main navigation.

Creating a New Customer Deposit

Step-by-Step Instructions

  1. Navigate to the Deposits page

    • Go to Finance > Deposits

  2. Click "Create Deposit"

    • Look for the blue button with a plus icon in the top-right corner

  3. Fill in the deposit details:

    Client Information:

    • Client: Select the customer from the dropdown

    • Search by typing the client's name if you have many customers

    Deposit Amount:

    • Amount: Enter the deposit amount (must be greater than 0)

    • Currency: Choose USD or other supported currencies

    • Exchange Rate: Only needed for non-USD currencies

    Deposit Classification:

    • Deposit Type: Choose what the deposit is for:

      • Dive Trip: For upcoming dive excursions

      • Course: For diving courses or training

      • Equipment Rental: For equipment rental deposits

      • General: For other services or general deposits

    Payment Information:

    • Payment Method: Select how the customer paid:

      • Credit/Debit Card: Card payments

      • Cash: Cash payments

      • Bank Transfer: Direct bank transfers

      • Check: Check payments

    • External Transaction ID: Optional reference number from payment processor

    • Cash Account: Select which cash/bank account received the payment (optional)

    • Unearned Revenue Account: Select appropriate liability account (optional, auto-selected by type)

    Optional Information:

    • Reference ID: Link to specific trip or course if applicable

    • Notes: Add any additional information about the deposit

    • Expiry Date: Set when the deposit expires (optional)

  4. Review and Submit

    • Double-check all information

    • Click "Create Deposit" to save

Expected Outcome

  • The deposit is recorded in your system

  • A financial transaction is automatically created (Cash/Bank account debited, Unearned Revenue credited)

  • The deposit appears in your deposits list with "Active" status

  • The client's record is updated with the deposit information

Managing Customer Deposits

Viewing All Deposits

The deposits page shows:

Summary Statistics:

  • Total number of deposits

  • Number of active deposits

  • Total value of all deposits

  • Total available (unspent) deposit value

Deposits List with:

  • Client name and contact information

  • Original deposit amount

  • Current available balance

  • Deposit type and payment method

  • Status (Active, Applied, Refunded, Expired)

  • Creation date and expiry date (if applicable)

Filtering and Searching

Search Options:

  • Type in the search box to find deposits by client name or deposit ID

  • Use the status filter to show only Active, Applied, Refunded, or Expired deposits

  • Use the type filter to show deposits for specific services

Sorting:

  • Click column headers to sort by client, amount, available balance, or date

  • Click again to reverse the sort order

Deposit Status Meanings

  • Active: Deposit is available to apply to bills

  • Applied: Deposit has been fully used on client bills

  • Refunded: Deposit has been refunded to the customer

  • Expired: Deposit has passed its expiry date (if set)

Working with Individual Deposits

Viewing Deposit Details

  1. Find the deposit in the list

  2. Click the three-dot menu (⋮) in the Actions column

  3. Select "View Details"

This shows complete deposit information including transaction history and any applications to bills.

Applying Deposits to Bills

When a client receives services, you can apply their deposit to reduce their bill:

  1. Find the deposit in the list (must be "Active" status)

  2. Click the three-dot menu (⋮) in the Actions column

  3. Select "Apply to Bill"

  4. Choose which bill to apply the deposit to

  5. Enter the amount to apply (can be partial)

  6. Confirm the application

What Happens:

  • The deposit's available balance decreases

  • The client's bill balance decreases

  • Revenue is automatically recognized (Unearned Revenue → Revenue)

  • If fully applied, deposit status changes to "Applied"

Refunding Deposits

If a client requests a refund:

  1. Find the deposit in the list (must be "Active" status)

  2. Click the three-dot menu (⋮) in the Actions column

  3. Select "Refund Deposit"

  4. The system will automatically refund the full remaining amount

  5. Confirm the refund

What Happens:

  • Deposit status changes to "Refunded"

  • Financial transaction records the refund (Unearned Revenue → Cash)

  • Available balance becomes zero

Common Workflows

Scenario 1: Dive Trip Deposit

Situation: Customer pays $200 deposit for a $500 dive trip

  1. Record the Deposit:

    • Client: Select customer

    • Amount: $200

    • Type: Dive Trip

    • Payment Method: Credit/Debit Card

    • Notes: "Deposit for Advanced Wreck Diving trip"

  2. When Trip is Completed:

    • Create bill for $500 dive trip

    • Apply $200 deposit to bill

    • Collect remaining $300 from customer

Scenario 2: Course Deposit

Situation: Student pays $150 deposit for Open Water course

  1. Record the Deposit:

    • Client: Select student

    • Amount: $150

    • Type: Course

    • Payment Method: Cash

    • Reference: Link to course instance

  2. When Course Starts:

    • Create bill for full course fee

    • Apply deposit to reduce balance

    • Process payment for remainder

Scenario 3: Equipment Rental Deposit

Situation: Customer pays $100 security deposit for equipment rental

  1. Record the Deposit:

    • Client: Select customer

    • Amount: $100

    • Type: Equipment Rental

    • Payment Method: Credit/Debit Card

    • Notes: "Security deposit for BCD and regulator"

  2. When Equipment is Returned:

    • If undamaged: Refund full deposit

    • If damaged: Apply deposit to repair costs, refund remainder

Tips and Best Practices

Recording Deposits

  • Be Specific: Use clear notes describing what the deposit is for

  • Link References: Connect deposits to specific trips or courses when possible

  • Check Accounts: Ensure the correct cash and unearned revenue accounts are selected

  • Verify Amounts: Double-check deposit amounts before submitting

Managing Deposits

  • Regular Review: Check for expired or old deposits regularly

  • Clear Communication: Ensure clients understand deposit terms and conditions

  • Prompt Application: Apply deposits to bills quickly when services are delivered

  • Documentation: Keep records of any special deposit arrangements

Financial Best Practices

  • Separate Accounts: Use different unearned revenue accounts for different deposit types

  • Monitor Balances: Watch total unearned revenue as it represents future service obligations

  • Revenue Recognition: Only recognize revenue when services are actually delivered

  • Cash Flow: Remember deposits improve cash flow but create service obligations

Troubleshooting Common Issues

"No clients found" in dropdown

  • Check Permissions: Ensure you have Client View permissions

  • Verify Data: Confirm clients exist in the system

  • Refresh Page: Sometimes a page refresh resolves loading issues

Cannot create deposit

  • Check Permissions: You need Finance Manage permissions

  • Verify Accounts: Ensure chart of accounts includes unearned revenue accounts

  • Amount Validation: Deposit amount must be greater than zero

Deposit not appearing in list

  • Check Filters: Clear any active status or type filters

  • Refresh Data: Click the Refresh button to reload deposits

  • Search Function: Try searching for the client name or deposit ID

Error applying deposit to bill

  • Client Match: Deposit and bill must be for the same client

  • Sufficient Balance: Deposit must have enough available balance

  • Status Check: Deposit must be in "Active" status

  • Client Billing: Create bills to apply deposits against

  • Payment Processing: Process final payments after deposit application

  • Chart of Accounts: Set up unearned revenue accounts

  • Financial Reports: View deposit impact on financial statements

Next Steps

After setting up customer deposits:

  1. Train Staff: Ensure all staff understand deposit procedures

  2. Set Policies: Establish clear deposit and refund policies

  3. Regular Monitoring: Review deposit status and balances regularly

  4. Financial Review: Include unearned revenue in monthly financial reviews

  5. Client Communication: Keep clients informed about their deposit status

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