This document provides a comprehensive overview of the deposit functionality within HirePOS, detailing how to manage deposit payments effectively. It covers the importance of deposits, how to set deposit due dates and values, and the process for creating deposit invoices.

In HirePOS, a "Deposit" refers to a required partial payment of the invoice or booking to secure the hire. While deposits are not mandatory by default, the system allows for customization of deposit due dates and values, which can be either percentage-based or a flat amount.

If a deposit is not paid by the due date, it will be flagged as an 'Overdue Deposit' on the Reminders List and can be viewed in Reports > Payments > Deposits Due by Date. Deposit invoices are essential for businesses that require deposits to secure bookings, ensuring smooth transactions and clear reminders for due dates.

This section outlines how to manage deposits, including setting deposit due dates and values, and creating deposit invoices efficiently and accurately.

On the sales record screen, the 'Other' tab contains a section dedicated to deposit dates and amounts.

Booking deposits are crucial for confirming reservations and are typically a portion of the final invoice amount. HirePOS allows you to set Deposit Due Dates, which are visible on bookings and invoices. This feature generates reminders on your Home Screen for upcoming deposit deadlines, ensuring timely payments.

You can set a default deposit due date via Setup > Preferences > Bonds & Deposits in the "Deposit Due Days" field.

Within the Other tab on the invoice screen, you will find two fields related to the deposit: Deposit $ and Deposit %. These fields can be customized to display on your booking and invoice documents alongside the Deposit Due Date, providing clarity to both you and your customers regarding the deposit amount and percentage.

The default deposit value or percentage can be set via Setup > Preferences > Bonds & Deposits in the "Default deposit

For businesses that require deposits well in advance, such as event companies, creating separate invoices for deposits is common practice. This ensures accurate accounting and tax reporting, especially for accrual-based income tax reporting.

By issuing a separate deposit invoice, you maintain the original booking until finalization, converting it to an invoice closer to the event date. This process avoids altering previously reported invoices and simplifies financial tracking.

To create a deposit invoice in HirePOS, follow these steps:

Before creating deposit invoices, set up a 'deposit item' in the system by navigating to Setup > Items. Create a new item with the description 'Deposit', code 'Deposit', item type as 'Misc', and enable Non-Stock in the configuration section. Assign this item as your 'Deposit' item in Setup > Preferences > Bonds & Deposits.

To create a new deposit invoice:

1. Open a Booking that requires a deposit to be paid.

2. In the Booking/Invoice screen, click the Other tab.

3. Ensure the Deposit Required fields are set correctly.

4. Click the + New Deposit Invoice button.

5. Set the Deposit Amount field and click Create Deposit Invoice.

The deposit amount is calculated based on the Deposit Required fields. The system prioritizes the higher value between the $ and % values. If both are absent, the $ value from the deposit item setup is used. You can override the calculated value during invoice creation.

When a Deposit Invoice is created, the original booking's "Deposit Due" field is cleared to prevent reminders. The Deposit Due date from the booking becomes the due date for the new Deposit Invoice.

To export a Deposit Invoice to your accounting service, ensure that the Deposit Item you've set up has a code assigned to it that corresponds to the correct account in that accounting software.

This can be done by going into Setup > Item Related and ensuring the item has an account code assigned in either its Income Code field or Income Category field. In the case of Xero, for example, these would be displayed as Xero Income Code and Xero Income Category.

If the item does not have an income code/category value, you will need to either:

• Create a new category for "Deposits", give it a suitable Xero Account Code, and assign your new deposit item to it.

• Assign your new deposit item to a suitable existing category.