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What is an advance deposit in a hotel?

An advance deposit is money paid before the stay or event to secure a booking. The hotel holds it as a credit on the guest's account and sets it against the final bill at check-out. Deposits are common for peak dates, group bookings and banquets.

How it is recorded

The deposit is posted as a payment on the booking's folio, which shows a credit balance until charges are added. The guest gets a receipt at the time of payment. If the booking is cancelled, the deposit is refunded or kept according to the cancellation policy stated at booking.

Deposits and GST

In India, GST on a service is due when an advance is received, not only when the final invoice is raised. The hotel issues a receipt voucher for the advance and adjusts the tax when it bills. Confirm the handling with your accountant.

In StaySynq

StaySynq records deposits and advances on the folio, applies them at check-out and handles full or partial refunds.

Common questions

Is an advance deposit refundable?

It depends on the hotel's cancellation policy for that rate. Non-refundable rates keep the deposit; flexible rates refund it if the guest cancels before the deadline.

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