How do I accommodate a materials deposit?
Some tutors like to charge a materials deposit to families at the beginning of the year, and keep that amount on hand as a balance for the business year. As the need for student supplies arises (i.e. for books, materials, etc.), the cost of those items can be deducted from the family account. If your business operates this way, TutorBird can help you manage this.
Here's how to get started:
- Navigate to the "Families & Invoices" from the main menu and
- Click the "Categories" button.
- Click the "+ New Category" button.
- Name the new category "Materials". This will now allow you to categorize a charge as "Materials".
- Next, navigate to the "Families & Invoices" page from the main menu.
- When you receive the deposit amount from a family, record it as a "Payment" on the family account using the "+ Add Transaction" button. Be sure the payment date does not fall within your next scheduled invoice date range. You want the date to be before the next scheduled invoice.
- Add a description to this item so you can easily identify it later if necessary
- Do NOT add a corresponding "Charge" for this entry. You only want to record the payment so the balance carries forward for the student.
- Now the family has a balance on their account for the materials. When you buy books and other materials for the student, add it to the Family Account as a "Charge" at that time.
Assuming the family is paid up for lessons, the family account will be in a balance remaining state. The balance remaining will reflect the remaining materials deposit.
Important: When invoicing a family you must disable "Previous Balance & Payments". This will create an invoice that reflects the new charges for lessons for the specified date range and ignore the remaining materials balance. If you charge for a book or other material during the invoice period, you can filter the invoice so that it omits the material fees in that invoice period.
Tip: You can create an invoice detailing a specific category by deselecting the "Previous Balance & Payments". This is a great way to provide families with a detailed materials at the end of the term, semester or year.