Once a deposit has been retained, it will raise revenue in the system but no VAT Invoice is produced.
VAT invoices can be created for No Show bookings and Cancelled bookings.
Retaining the deposit
⚠️Important: You need to retain any deposit attached to the reservation prior to completing the steps below. When retaining please make note of the below two fields:
If you do not have the above information you can find this in the Posting Report for that date.
Create a VAT invoice for a retained deposit
To create a VAT invoice for a Cancellation where the deposit has been retained, follow the steps below:
Step 1: Create an NRA Invoice
Create a Non-Resident Account (NRA) linking the guests' profile.
Once the NRA has been created, click Billing.
Once in the NRA billing, click New Charge to charge for the cancellation.
Within the Free Type section, enter the:
Analysis code – the one used to retain the deposit.
Description to display on invoice.
🤓Tip: Use the booking reference of the reservation, the guest's name and ‘cancellation’. If left blank, the analysis code description will be displayed.
Quantity - how many nights you are charging for.
Value of the charge - this value will be multiplied by the quantity, so check the value entered is correct.
Select Free Type Post. The charge now displays on the NRA billing.
Then to add the deposit value retained, click Add Payment.
Enter the Pay Type used to retain the deposit, and the value of the retained deposit. Click Add Payment.
Click Finalise, then View to choose your output format, to view the VAT Invoice.
🤓Tip: Save the invoice to send to the guest.
⚠️Important: Once a VAT Invoice has been issued, this needs to be reinstated and the transactions reversed, or you will not balance. Please continue to follow the steps below.
Step 2: Reverse the NRA
As you have already retained the deposit, the NRA invoice is just for the guest. Leaving the NRA invoice as it currently is would result in the financial reporting within the system showing incorrectly.
To reinstate and reverse the NRA charges, follow the steps below:
Click Reinstate Invoice.
Within the last Bill Split, click New Charge. Use the Free Type Analysis Code section and the analysis codes used when retaining the deposit. Enter the Amount but with a minus, then click Post.
Click Add Payment. Enter the Amount with a minus by the correct PayType. Click Post.
Once the NRA billing balance is zero, click Check Out.
Once checked out, you will receive a pop-up asking if you would like to create another, click No.