Hi everyone. With our Event and Group Accommodation deposits, we use a Deposit Product code so when the invoice is posted into our accounting software (Xero) deposits go into a liability account.
When a final invoice is created, the deposit is ‘reversed’ using a Less Deposit product code, taking it out of that liability account and into income.
I’d be keen to see what other users do. Thanks so much!
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+2Hi Marie,
We use a similar way: Once we receive a pre-payment for group or event, or we need to issue an invoice for it, we create a Deposit items but we always create two of them (addittional service: Deposit → Product: Deposit 12% VAT). One is in positive value and one in the negative value. The one in positive value is being closed on the bill with the payment, and the negative value one is being closed after consumption of the items on the bill.
Example case:
Reservation of 20 rooms, each of them costs 100€, meeting room 1 day costs 300€ = Total value of ordered services is 2300€, the stay date is 1.8.2026 to 2.8.2026
When ordered, we agreed on the conditions that 50% of the total will be pre-paid 4 weeks before the arrival date, and remaining 50% of the total will be paid on the spot upon arrival.
On 20.6.2026 we will create two Deposit items:
The deposit in the value +1150€ will be moved to a separate bill, and issued invoice with due date 4.7.2026. Once we receive a payment of 1150€, payment is added to the invoice and closed.
The deposit in the value -1150€ is moved to the same bill where the stay items and event room are.
On 1.8.2026 upon arrival we will create two deposit items again:
The deposit in the value +1150€ will be moved to a separate bill, and closed together with collected payment.
The deposit in the value -1150€ is moved to the same bill where the stay items and event room are.
On 2.8.2026 (departure date)
All the items are already consumed. We have on the remaining bill:
Bill is balanced to 0€ and all items are consumed = we are closing the bill and sending it to the client.
This way we comply with the Tax legislation in Czech Republic.
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