In this scenario, your organisation collects refundable deposits from its members or other users for the private hire of the clubhouse. These are refunded in whole if the Clubhouse is left in good order, but can also be partially or wholly retained, if required.
The considerations here are that you need to record the cash receipt into your Bank account but not record this as income (it isn't - you are simply holding 3rd-party monies); you will also need to create a corresponding liability or creditor balance in your accounts to represent that this money is owed by you. Lastly, you will need to record some or all of the deposit as income if it is not fully repaid.
The good news is that this is very straightforward in Clubtreasurer by using the Account Transfers feature (Transfers > Account Transfers)
1. When you receive user deposit(s) create a new Account Transfer:
- From: Creditors
- To: Bank A/c
This will record the cash into your Bank A/c and create a liability balance on your balance sheet. Also, this will not create any income on your P&L.
2. Similarly, when you refund the deposits create an opposite Account Transfer:
- From: Bank A/c
- To: Creditors
This will reduce the bank and liability balances.
If the deposit is only partially refunded, you will simply record this as income via a Receipt Transaction
3. Create a new Receipt Transaction against the Creditor A/c:
- Account: Creditors
- Amount: Amount not refunded.
This will record an income in your P&L (you may want to create a new Cost Code for this) and will reduce your Creditors/liability balance. Note that you don't record this against your Bank A/c as the monies are already recorded against it - from the first Account Transfer).
Finally, use the Account & Cashbook Report to monitor and report your transactions against the Creditor A/c.
