Below, learn the definitions of accounting related language and concepts used by Campspot.
Debit and Credit Definitions
Business transactions are events that have a monetary impact on the financial statements of an organization. When accounting for these transactions in a Journal Entry report, we record numbers in two accounts, where the debit column is on the left and the credit column is on the right.
Debit: An accounting entry that either increases an asset or expense account, or decreases a liability or equity account. It is positioned to the left in an accounting entry. You can think of this in terms of “owed to” or “to/destination”.
Credit: An accounting entry that either increases a liability or equity account, or decreases an asset or expense account. It is positioned to the right in an accounting entry. You can think of this in terms of “owed by” or “from/source”.
System and Reservation Definitions
Cash basis accounting: A method of recording accounting transactions for revenue and expenses only when the corresponding asset is received or payments are made.
Example: Money received today for a reservation in the future is counted as revenue today.
Accrual basis accounting: A method of recording accounting transactions for revenue when earned and when expenses are incurred.
Example: Money received today for a reservation in the future will be counted as revenue when the reservation take place.
To learn more about cash basis and accrual basis accounting [READ HERE].
Asset Account: For Campspot purposes Assets and Asset Accounts are defined as the account of record for Cash, Check, Credit Cards, etc – anything of value provided by the guest to the park in exchange for goods and services. This account type would also be used for Transfer Internal, Transfer External and POS inventory accounts.
Revenue Account: For Campspot purposes, Revenue and Revenue Accounts are defined as the account of record for charges or fees earned by the park for providing goods and services to guests.
Liability Account: For Campspot purposes, Liabilities and Liability Accounts are defined as the account of record for potential obligations by the park to another entity, such as a guest or a tax authority.
Accounts Receivable: For Campspot Purposes, Accounts Receivable refers the total value of the reservation to be recognized once the reservation has concluded. This is recorded as an asset account. Similar to Deferred Revenue, the entire value of a reservation is debited to Accounts Receivable upon booking, regardless of how much payment has been collected for that reservation.
Deferred Revenue: Deferred Revenue is revenue expected from a customer for future goods or services. The seller records this revenue as a liability, because it has not yet been earned. In Campspot, the entire value of a reservation is credited to Deferred Revenue upon booking, regardless of how much payment has been collected for that reservation.
Prepaid Deposit: For Campspot purposes, Prepaid Deposits can be defined as the value of an asset (such as a credit card payment) that has been received toward a future obligation, such as a reservation. This is recorded as a liability account.
Overpayment: Assets applied and recorded that exceed the invoice balance.
Underpayment: The value of unpaid charges on an invoice after the reservation departure date has passed.
Camp Credit: Value of liability for the park to guests for in-park purchases. To learn more about camp credit [READ HERE].
Financial Account: Any cash-basis asset, liability, or revenue account either created by default in Campspot or created by a user.
Deferred Financial Account (accrual): Any accrual-basis liability account either created by default in Campspot or created by a user.
Point of Sale Accounting Related Definitions
Financial Account: POS item revenue account. POS is always cash basis as the sales are only recorded on the date they occur.
Cost of Goods Sold (COGS) Financial Account: When the sale of a POS item occurs, Campspot will debit the cost associated with the item from the designated COGS Financial Account.
Inventory Financial Account: When the sale of a POS item occurs, Campspot will credit the designated Inventory Financial Account for an amount equal to the COGS transaction.
Unmapped POS Revenue: A default system account/placeholder that is used to record revenue for POS sales that do not have a designated Financial Account.
Unmapped POS Cost of Goods Sold: A default system account/placeholder for the COGS financial account.
Unmapped POS Inventory: A default system account/placeholder for the Inventory Financial Account.
Unmapped POS Write-Off: A default system account/placeholder for the COGS Write-Off financial account.