Security deposits in ledger accounts

Which ledger accounts BEX PMS uses for security deposits, and what is booked when a deposit is paid, released or claimed.

A security deposit is money you hold for a guest. It is not turnover, so it is not an invoice line and has no VAT. BEX PMS books it on its own ledger account until you release or claim it. The examples below use a security deposit of €100.

Ledger accounts for security deposits

Every administration has two fixed ledger accounts for security deposits. BEX PMS creates them automatically. You can find them in Financial > Ledger accounts.

Ledger account	Number	Used for
Security deposits	2060	Security deposits that guests have paid and you still hold
Security deposits damages	4300	Damage amounts you claim from a security deposit

If you use a linked accounting program, create ledger accounts 2060 and 4300 there as well.

Booking a security deposit payment

A security deposit payment is booked on the payment date. The amount goes from the ledger account of the payment method to Security deposits.

Ledger account	Debit	Credit
Payment method (for example Bank)	100
Security deposits (2060)		100

If the guest pays the security deposit together with the rent, only the security deposit part goes to Security deposits. The rest is booked as a normal advance payment.

Booking a released security deposit

When a security deposit is released, automatically or manually, the full amount moves from Security deposits to Reservations (1300). This is booked on the release date. The amount is now on the payment balance of the reservation, ready to refund via Invoices to pay.

Ledger account	Debit	Credit
Security deposits (2060)	100
Reservations (1300)		100

The refund itself is booked like any other refund to a guest.

Booking a claimed security deposit

When you claim damage, two things are booked:

The full security deposit is released to Reservations, as described above.
The damage amount is added to the invoice of the reservation as an invoice line on Security deposits damages (4300).

Example with €30 damage:

Ledger account	Debit	Credit
Security deposits (2060)	100
Reservations (1300)		100
Reservations (1300)	30
Security deposits damages (4300)		30

€70 stays on the reservation for you to refund. If the damage is more than the security deposit, for example €300, the guest still owes €200 via the invoice of the reservation.

Good to know

Is anything booked when a security deposit is waived? No. A waived security deposit was never paid, so nothing is booked.
Which date is used for security deposit bookings? The payment date for the payment, and the release date for a release or claim.
Is VAT charged on a security deposit? No. A security deposit is not turnover, so it has no VAT and does not appear as an invoice line.

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