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How do I process deposits?

If you accept deposits for tuition or other fees, here's how to set those up and process them in Populi.

Step one: set up a liability account

If you haven't already, set up a liability account in your Chart of Accounts.

  1. Go to Financial > Accounting > Chart of Accounts.
  2. Click Add Account.
  3. Fill in the account details—and make sure to select Liability as the account Type!

Step two: create the fee

You'll next need to create a fee for the deposit in Billing > Settings.

  1. Go to Financial > Billing > Settings > Fees.
  2. Click Add Fee.
  3. Fill in the fee's details. Make sure you select the liability account you just created!

Processing a deposit

1. Add it to a student account

You can manually-add it on their Profile > Financial tab (either on Current or By Term), or use Fee Rules to trigger it. Whatever you do, it will be added to the student's account as a pending charge (like all other charges).

2. Invoice the deposit

Invoice the deposit fee. While you can certainly include it in another invoice, it's best to invoice it by itself: the deposit will not be considered paid until the invoice it's on is paid in full. Once invoiced, it will display on the student's Financial > Dashboard tab under Deposits Held. You can also find it in the Billing > Unpaid/Unapplied Deposits report.

3. The student pays the invoice

You cannot use the deposit until the student pays the invoice in full! When you record the payment (or set up the aid disbursement), make sure to apply it to the invoice that includes the deposit fee.

     

4. Apply the deposit

Once the invoice is paid off, you can then use the deposit one of three ways. At this point, you can still find it in the Billing > Unpaid/Unapplied Deposits report. Click the icon next to the deposit and select which Action you wish to perform...

1. Apply it to the student's account

Enter the Posted date, and then either a percentage or dollar amount to apply to the student's charges.

When you do this, the amount appears under Unapplied Payments/Credits.

You cannot use the deposit until the student pays the invoice in full! When you record the payment (or set up the aid disbursement), make sure to apply it to the invoice that includes the deposit fee. If the student is paying online, direct him towards that invoice.

2. Record a refund to the student

Enter the Posted date, and either a percentage or dollar amount to apply to refund to the student. Then, select the asset account you wish the deposit to be paid from.

When you do this, you have recorded that the amount has been refunded to the student. It shows under Recent Transactions as a Customer Repayment.

3. Record the deposit as forfeited

Enter the Posted date, and either a percentage or dollar amount to retain as forfeited deposit income. Then, select the income account you wish the deposit to debit.

When you do this, that income account is debited, and the money is yours. It shows under Recent Transactions as a Journal entry.

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