Advance deposits, which allow schools to accept money to reserve a student's place, are available in both Student Billing 6 and Student Billing 7, but function differently in each version. In Student Billing 6, advance deposits are recorded when the cash is received and generated during the school year. In Student Billing 7, advance deposits are recorded as a billable charge, funded when the cash is received, and credits are generated during the school year to apply to charges. This change allows you to send a bill for the deposit due for the next school year. 

This table outlines the basic functionality of advance deposits:

 Student Billing 6Student Billing 7
Transaction
 
Action
 
Journal Entry
 
Action
 
Journal Entry
With Suspense
 
Journal Entry
Without Suspense

 
Deposit RequiredSend LetterN/AAdd Advance DepositNo entry Posts to General LedgerNo entry Posts to General Ledger
Payment ReceivedAdd Advance DepositDebit Cash
Credit Unearned Revenue
Record PaymentDebit Cash
Credit Unapplied Payments
Debit Cash
Credit Prepaid Tuition
Apply Payment to Advance DepositN/AN/AApply Payment to Advance DepositDebit Unapplied Payments

Credit Prepaid tuition
N/A
Generate CreditsGenerate Advance DepositsDebit Unearned Revenue

Credit Accounts Receivable
Generate Advance DepositsDebit Prepaid Tuition

Credit Unapplied Payments
Debit Prepaid Tuition

Credit Accounts Receivable
Apply Credits to ChargesApply Credits to Charges
(Note A)
N/AApply Credits to ChargesDebit Unapplied Payments

Credit Accounts Receivable
N/A


Note A: In a balance forward system, you do not apply credits to charges.


For more information, refer to: 

When applying an existing payment (a posted payment that Debited Cash and Credited Accounts Receivable) to a newly added Advance Deposit, the system will automatically create a journal entry that will Debit Accounts Receivable and Credit Prepaid Tuition.

If an Advance Deposit is Funded by a generated Advance Deposit Credit, the Credit will Debit Prepaid Tuition and Credit Prepaid Tuition.