Payments are applied to all reservations by using the Payments Received option from the Reservation Menu. Cash/check payments and credit card payments are posted using this option. The system automatically performs the entries in the general ledger for all payments. The entries are a debit to the cash account, increasing the cash you have, and a credit to the advanced reservations account, increasing the liability you have. These accounts are defined to the system in the control file. Payments reduce the reservation balance and increase the total payments they have paid.
This option is also used to post any credits or debits to reservations. A credit to a reservation does the same things as a payment, but requires the entry of the general ledger account number to debit. A credit would be used to reduce a reservation balance owed and, for instance, write it off against your commission income account. A debit to a reservation has the opposite effect of a credit. It increases the balance owed and decreases the total payments paid. The debit transaction requires the entry of the general ledger account number to credit with the debit account automatically being advanced reservations. A debit would be used, for example, to reverse a check that bounced or a credit card charge that was declined.
See Also Payments Received