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Hey Community 🙂

 

We're excited to share some upcoming improvements to how we handle deposits in Mews, aimed at increased adoption across legal environments and improved reporting.

 

Here are the first two improvements we have in store for you:

 

  1. Deposits will now be consumed on check-in.

 

 Currently, the deposits are consumed at the check-out, which means Deposit ledger column also contain the information on the guests in-house, and even that guests prepaid, they currently show as owing hotel money until their end of stay.

 

Question: We would love to know if any of you would actually prefer the deposit to be consumed as they are now, and what benefit you see managing deposits this way.

 

  1. Automatic Deposit Settlement: Properties will now have the ability to decide if deposits should be taxed.

 

We understand that taxation regulations can be complex and vary by location. To accommodate this, properties will soon be able to decide if deposits should be taxed on payment receipt, or if tax should only be declared when services are consumed / on final bill. This flexibility can make a big difference, especially for properties in regions like the US. 

 

Question: If you don't currently use Automated Deposit Settlement, let us know if this change would encourage you to adopt it.

 

What next?

  • We will be ready to release these changes gradually, starting later this month - please get in touch with me directly if you would like to be included in the first release batch. 
  • Please reach out if you would like to speak to us about these changes or share your other issues with deposit handling.

 

Also, stay tuned for updates on what is coming next!

 

Good morning, this sounds promising guys. 

To question 1: well maybe I am not the best person to answer, cause I think consuming the deposit on departure is financially incorrect. In the finance world, a deposit/pre-payment will turn as credit into the guest ledger the moment the guest checks in. The deposit ledger is a liability we have towards the guest, which will end the moment checks in.

So I can't wait to see this in action. 

 

To question 2: Does that mean in the US we would still keep automatic deposit settlement active (with the new release) but can make a decision to not post with tax? Just asking cause the last time I spoke with the US MEWS team they said we do not need to have automatic deposit settlement. 

I would love to test this one of the US properties, please feel free to reach out to me and Sam. 

THANKS!! 
I am really glad to read there are some movements on that topic. We are getting there, step by step!💪🏼

 

 

 

I agree with @ClaudiaM. on this, I also believe consuming the deposit on check-out to be an incorrect way of handling this. So I am happy to see this change being made!

It would also be much more logical if the ledger stops showing guests who have a deposit equal to the open amount on their bill during their stay.

Looks great, good job Mews!

Good morning, this sounds promising guys. 

To question 1: well maybe I am not the best person to answer, cause I think consuming the deposit on departure is financially incorrect. In the finance world, a deposit/pre-payment will turn as credit into the guest ledger the moment the guest checks in. The deposit ledger is a liability we have towards the guest, which will end the moment checks in.

So I can't wait to see this in action. 

 

To question 2: Does that mean in the US we would still keep automatic deposit settlement active (with the new release) but can make a decision to not post with tax? Just asking cause the last time I spoke with the US MEWS team they said we do not need to have automatic deposit settlement. 

I would love to test this one of the US properties, please feel free to reach out to me and Sam. 

THANKS!! 
I am really glad to read there are some movements on that topic. We are getting there, step by step!💪🏼

 

 

 

Hi Claudia,

Great to hear that you are excited about these changes, so are we 😀

On point 2: Exactly that, we want to enable Automated Deposit Settlements to legal environments that do not tax deposits on payments, by giving ability to configure deposits flow that way.

I will reach out so we can have catch up around these changes, rollout, and what other issues you see in the deposit flow.

I agree with @ClaudiaM. on this, I also believe consuming the deposit on check-out to be an incorrect way of handling this. So I am happy to see this change being made!

It would also be much more logical if the ledger stops showing guests who have a deposit equal to the open amount on their bill during their stay.

Looks great, good job Mews!

 

Hi @andreas,  many thanks for your feedback!

Currently, the charges on the ledgers are displayed according to the consumption date. Are you suggesting that, if a guest has prepaid for their entire stay, we should not include their charges on the ledger, even if the items they've paid for haven’t been consumed?

 

Kind regards,

 

Joanna

@Joanna Kozlowska 

We was not using Deposit fucntion as this was not available/recommended if no tax was taken by the time of payment. Have this now been changed and we can use deposit function if we want to tax at the time of consumption and not by the time of payment of the deposit?

@Joanna Kozlowska

We was not using Deposit fucntion as this was not available/recommended if no tax was taken by the time of payment. Have this now been changed and we can use deposit function if we want to tax at the time of consumption and not by the time of payment of the deposit?

 

Hi @Linus.Bihn, real apologies for such a late reply, I had missed your previous message!

Indeed, we have now added the additional Deposit tax rates setting into Settlement rules configuration, where for Automatic Deposit Settlement property can choose that deposits are not taxed.

 

 

Mews will still issue the bill for the deposit payment, however, no tax is declared.

 

This enhancement is now available for testing in both the Demo and Live environments. If you would like to enable it, please reach out to me with your Enterprise ID.

 

Best,

 

Joanna

The ability to use the negative deposit prior to departure would be a welcome change, especially in the case of Longstay bookings where the guest pays monthly upfront.  In most jurisdictions we need to use deposit to recognise the tax in advance when payment is made, but currently we are not able to use the negative deposit against any consumed charges until departure - which causes confusion on reporting on what is actually due and builds up deposit ledgers.

Hey community - closing the thread as Deposits to be consumed on check-in is now Live.

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