The terms "Advance" and "Deposit" refer to two distinct types of payments made by residents or property owners to the association.
Advance
An Advance is a prepaid amount made by a resident or owner towards future dues, such as maintenance charges, utility bills, etc.
Example:
If a resident pays ₹10,000 in advance, it will be considered as an available balance in their account.
As new invoices are generated (e.g., for maintenance or water charges), the amount will be automatically adjusted from this advance balance.
Deposit
A Deposit is a security amount collected by the association for a specific purpose. It is typically refundable and is not automatically adjusted against regular invoices unless explicitly allowed.
Example Use Cases:
The deposit may be used for partial or full bill adjustments or refunds only when required.
It is generally returned once the intended purpose is fulfilled, such as after confirming there’s no damage to the facility or asset.
Author: Tarun