Deposit is the sum of money collected from the customer, usually as caution amount for the package or products provided. The products could be subscription services or hardware on lease.
Billing & CRM solution allows capturing and refunding such deposit amounts paid by a customer. When deposit is collected, it is credited to the customer’s deposit account. This deposit amount is returned to the customer at the end of the order period or while processing full and final settlement.
While returning deposits (i.e. refund) any dues of the customer is adjusted by the deposit amount and the remaining amount is credited to the customer current (receivables) account.
During change of package/product, deposits for the earlier plan should be refunded and for the new plan, deposit should be taken separately.
While refunding, if the customer does not disconnect before the lock in period and the customer has no debit balances to be paid, then only refunds can be given to the customer. Otherwise this credit is adjusted towards the pending invoices.