Rebooking cancelled reservation
I have bookings from 2020 that were cancelled but not refunded. There were deposits on these reservations which we offered a voucher to be used for a future booking.
Now, they are rebooking for 2021 and I am trying to find the best way to apply the previously paid deposit to the new dates.
We have already been taxed on the payment they made for their 2020 reservation, so I am trying to figure out how to set-up/record the new dates, applying the previous deposit without it looking like we received this deposit in 2021.
Thinking if you need to segregate the accounting of the funds, create a new Rent Income sub-account. Something like Voucher Income.
From the Accounting Point of View, the payment stays in the Pre-Paid Rent Liability Account rather than being recorded to Rent Income or Voucher Income until the rental occurs. Ask your Tax Pro if that may be deferred income for 2020 reporting purposes.
For an example of segregating funds. We have a situation where AirBnb remits taxes to one of the municipalities we serve. We had to create an AirBnb Rent Income account in our books to differentiate those rents from those we need to remit taxes on. Achieved the desired result.