How to Accurately Record Refundable Deposits (HINT: Not as Revenue!)
Refundable deposits (e.g., for lockers, fobs, keys and carrels) are collected from individuals by departments, and are expected to be refunded at a future date. The deposit should not be reflected in the departmental revenue or expense accounts because no income or expense is involved. Rather, the deposits should be reported as liabilities, (i.e. amounts which the University owes to the depositors when they have fulfilled requirements for return of the deposits).