What is the difference between Withdrawals and Deposits?
Withdrawals and deposits can be confusing at times, depending on how you use Smartlaunch for handling time and product sales.There are some very important terms that we should understand to be able to handle daily transactions in the store:
Whenever you deposit money to a user’s account, that amount is added to the “Deposits” amount. Whenever you withdraw money from a user’s account, that amount is added to the “withdrawals” amount.
Here’s a step by step example of how deposit and withdrawals work in daily transactions.
1. User Test is created and has a zero remaining balance.
2. User Test added $100 as deposit to his account and he paid in cash.
3. Now User Test has $100 as the remaning balance.
4. The Administrator Adds Time for user Test for 1 hour and it is taken from the deposited money. The money is withdrawn from the user account.
5. Now the remaining balance for the user is $90
Time added to users accounts
Whenever you add time to a user’s account, (and do not user either pay later or custom price) the time is actually not added. Instead Smartlaunch deposits money to the users account, which matches the price for the number of hours/minutes you added.
This is done to allow Smartlaunch’s advanced pricing system to adjust the number of minutes left depending on the pricing scheme which often differs over the week and time of the day. Furthermore this is done to handle TAX issues, as you should not pay taxes for time which has been been used yet. The user may actually use the money deposited for products instead of time, and those two are taxed differently in many countries.
Whenever you end a users session, the money left over (if any) on that session is transferred to the new session.
For instance a user might have bought two hours, only played one hour, and then wants to leave, but save the remaining one hour for the next time he visits your cafe.
In the case above, he might have $100 left on the account.
The $25 are then “withdrawn” from the current session. In the financial report it will just appear as:
- Deposits: $100
- Withdrawals: $10
- Total: $90