Refundable Deposits

Summary: This article will explain how to create and edit Refundable Deposits along with the necessary permissions and configuration steps you'll have to take care of to fully implement refundable deposits into your workflow.

What are Refundable Deposits?

Refundable Deposits are typically restricted cash balances that are intended to be returned to the customer/homeowner at a future date. Within HOAs, refundable deposits are usually seen in the form of security deposits provided by a tenant upon moving in with the intent that they will receive the deposit back upon moving out as long as they don't violate their lease/rental agreement.

The deposit is held in a liability account to keep it separate from the standard operating account to ensure the funds are not misappropriated or create disparities in ledger balances.

Creating the Deposit Charge Type

1. You'll need to create the Deposit Type Assessment before you can begin creating new deposits, go to Association > Assessments and select +New Assessment.
   
2. On the Edit Assessment form, select Deposit as the Type of Charge.
1. Provide information for the following fields as needed:
1. Description
2. GL Account
3. A/R GL Override
4. HO Credit GL Override
1. Deposits are held in a liability account to ensure that the funds do not impact the homeowner's balance, with the expectation that the funds are returned.
5. Fund
6. Billing Format
7. Subledger
   

Deposit Permissions

There are multiple permissions available, each with a separate functionality that can be enabled depending on what needs to be accomplished: Note: If not enabled, each respective button will not be visible on the Homeowner > Ledger > Deposits tab but they will still have access to the Deposits tab.

• New Deposit: Allows the user to create a New Deposit.
• Deposit Adjustment: Allows the user to Adjust existing Deposits.
• Edit Deposit History: Allows the user to manually add Deposit Beginning Balance information or edit imported Deposit information.

Creating a New Deposit

1. Go to the Homeowner > Ledger > Deposits tab and select the New Deposit button.
   
2. Using the New Deposit form, provide information for the following fields, as needed:
1. Bank Account
2. Deposit Date
3. Total Amount: You'll need to make sure that the deposit distribution matches your entered amount by selecting the Payment column and distributing the funds as needed.
1. Note: The Payment value must match the Amount value or an error will continue to pop up if you attempt to submit the form with the mismatched values.
   
4. Type: Only Deposit Type Assessments will be available as options.
5. CheckNo
6. Descr
7. Attachments.
3. Click Update to complete.

Adjusting a Deposit

1. Select the Deposit Adjustment button on the Homeowner > Ledger > Deposit tab.
2. The Adjust Deposit form will default to Refund but the following options are available:
1. Refund: Refunds the homeowner for the inputted amount.
   
2. Reallocate: Reallocates funds from one Deposit Charge Type to another.
   
3. Move to Ledger: Moves a payment that has been applied to a Deposit to Charge in the Summary ledger.
1. This action will be recorded on the Transactions Ledger as a Payment Adjustment.
   

Editing Deposit History

Editing a Balance's History allows you to manually add a Deposit's beginning balance information or edit imported Deposit information.

1. Select the Edit Deposit History button on the Homeowner > Ledger > Deposit tab.
   
2. Select the +New History Item button to create a new entry with the following fields:
1. Transaction Date
2. Deposit
3. Payment Amount
4. BK XN#
3. Select Save History to finish and save the entry.