Front office
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.
Related terms
- FolioA folio is the running account of everything a guest is charged and everything they pay during a stay: room nights, restaurant bills, minibar, laundry, taxes, deposits and payments. At check-out the folio is settled and becomes the basis for the invoice.
- Guest ledgerThe guest ledger is the set of accounts for guests who are currently staying in the hotel. It is the total of all open folios: the charges posted to in-house guests, less what they have paid so far. It is also called the front office ledger or transient ledger.
- No-showA no-show is a guest with a confirmed reservation who neither arrives nor cancels before the hotel's cut-off time. The room goes unsold for that night, so most hotels charge a no-show fee, typically the first night, when the booking was guaranteed by card or deposit.
- BEO (banquet event order)A BEO, or banquet event order, is the document that sets out everything a hotel must deliver for an event: date and timings, hall and layout, guest count, menu, beverages, equipment, staffing, billing instructions and the client's contact. Every department works from it.
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