Security Deposit Features
Enable Configure Make Res w/ Security Deposit	Refund Security Deposit Print Folio Transfer Security Deposit

Overview

Security deposits are a way to collect money prior to arrival or at check-in for preassign (Type p) and inventory (Type I) reservation to be available for replacement of any broken/damaged items or other similar charges that may be applied after checkout.  This amount is held until the room is inspected and deemed acceptable.  If damage does occur, some or all of of the security deposit can be kept by the property to pay for repair, cleaning, or replacement; and any remainder can be returned to the Guest.  A security deposit applied and paid on future reservations sits in the advance deposit ledger until check-in. During check-in, the security deposit is automatically transferred to the security deposit liability account until forfeited or refunded after check-out.

Enable, Configure, and Use Security Deposits

When collecting a security deposit from a guest to be returned after check-out, that amount must be held as a liability until either partially or fully refunded to or forfeited by the guest.

1. Enable Security Deposits.  From the Reservation | Configuration | Other Charges tab, check the On column for Security Deposit (Transaction Code B208).
   
    
2. Configure Amount.   Require a manual entry or configure a flat or variable rate.  The Security Deposit can be set to a flat amount for every preassign and inventory reservation or automatically calculated based on rate components by room type and season.  If no amount is configured, either flat or calculated, the amount must be manually entered from the Reservations | New Reservation screen, enter the Security Deposit amount before clicking the Make Reservation button.  If both a flat and variable amounts are configured, the system uses the configured variable amounts.
   
   
   1. Flat Security Deposit.
      • Select Change from the Accounting | Transactions menu.
      • Select B2 from the Ledger drop-down.
      • Select "08- Security Deposit" from the Code drop-down.
      • Enter the desired flat-rate amount to be charged for ALL security deposits on any reservation type.
        
      • Click "Save & Close".
   2. Variable Security Deposit.  To change the seasonal security deposit amounts based on room type:
      
      
      • Select Change from the System | Rates | Components menu.
      • Enter SECD as Code.
      • Click Find.
      • Select one of the security deposit components (one allowed for each room type and room number).
        
      • Select the desired Room Type or Room Number from the drop-down. 
      • Place the mouse within each season and type in the new amount directly.
      • Click Save is more changes are needed for other room types or room numbers, and start the process again.
      • Once all changes have been made, click Save & Close file the changes. 
        
3. Make Res with Security Deposit.  When a reservation with a security deposit is saved, a B108 Security Deposit code is preposted to the folio.  Any deposit received is held in the B1 Advance Deposit Ledger until check-in.
   
    
4. Check In.  Once a reservation with security deposit is checked in, the preposted flag is removed from the B208 Code on the Folio.
   

   Note: Security Deposits can be posted manually at any time prior to check-out by posting a B208 Transaction Code manually using Post Charge.  Payments can then be taken manually using Deposit/Payment.

5. Generate Totals.  The charge is posted to the designated liability account, and the deposit is transferred from the B1 Advance Deposit Ledger to the B2 In-House Guest Ledger.
   
    
6. Check Out.  At check-out, the reservation Type is updated from P5 to P7 (P=preassign, 7= checked out with security deposit).
   
    
7. Inspect Room.  The room should be inspected to determine if any damage occurred.  Any charges posted to a reservation after check-out cause a message to display.
   
   
   If yes, the security deposit available for refund is reduced by the charge amount, the liability security deposit G/L account is decreased, and offset account for the selected Transaction Code is increased.  In the sample below, a transaction code is defined for B2 In-House Ledger with a code created as 32 - Security Deposit Damage.  The Description is displayed in place of the Code Description for clarity.
   
    
8. Refund Security Deposit.  To refund a security deposit from a checked-out reservation, select Security Deposit from Reservations | Options | Refund menu.  An error message is displayed if the Security Deposit balance is zero.  If charges have been posted for damages, those charges are specified in the grid.  The amount remaining of the original security deposit is displayed in the Security Deposit field under the grid and in the folio information displayed on the right of the screen.  To issue a refund, select the Refund Type (anything available except None), enter the Refund Amount, and complete any additional fields (based on selected Refund Type).  Click Save to process the refund.
   
   
   Note:   When a paying guest reservation has a zero balance and is checked out, the Status remains as P7.  Properties can set "Change Res Status from 7 to 8 When Security Deposit Reaches Zero" Switch 414-38 to yes in order to change the status to P8.  With Switch 414-38 set to "Yes", a checked-out reservation with the security deposit refunded changes from P7 to P8.
   
9. Print Folio.  When issuing a security deposit refund to the guest, a copy of the folio should be printed for clarification purposes.  Use Find Res to select the reservation, and select Print Folio from the Reservations | Options | Folio menu (sample below).
   

Click these links for Frequently Asked Questions or Troubleshooting assistance.

Last Updated 11/10/2008

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