Hi Reeta,

Thanks for your question regarding deposit invoicing!

When you create a deposit in Mews, the deposit is created with two revenue items:

• one with a positive value and
• one with a negative value

A positive deposit represents revenue items on the guest's final bill, for example, nights or breakfasts. Mews immediately consumes the positive deposit when you create it. You use it to close a bill that contains a real prepayment.

In legal environments that require tax reporting at the time of payment, the positive deposit also applies tax to the prepayment transaction. This mirrors the taxation of the actual bill, so the deposit reflects the correct tax value.

Mews lists a negative deposit under the customer's unpaid items, along with the stay item. It mimics the payment, allowing you to settle the item without accounting for revenue and tax twice.

Workflow Example

• Create and issue a deposit invoice when the guest is due to pay an advance by bank transfer.
• Upon receiving the payment in your bank account, manually mark the payment as received against the deposit invoice in Mews.
• The system should register the tax at the time the payment is recorded, supporting correct tax recognition.

I hope this helps to clarify the situation.

Best regards,

Paul