Double Entry Bookkeeping: Overview

Vault uses the double entry bookkeeping system. This means that each debit entry must be balanced

by one or more entries of an equal credit amount, and vice-versa, in either a customer account or an

internal account.

In this example we show a possible life cycle of a card transaction in the Vault system, where you

have an Auth, Auth Adjustment and finally a Settlement posting type.

1. A customer walks into a hotel and puts down a $100 deposit at the hotel front desk in order to

secure the room. Within Vault this is reflected using an Authorization posting type of $100,

moving funds from the Pending Outgoing phase of the customer’s balance and crediting the

same phase of an Internal Account’s balance.

2. The customer extends their stay in the hotel, and is required to deposit an additional $50 to

secure the extension. This is reflected in Vault as an Authorization Adjustment of $50 in the

same phases as the previous posting.

3. The customer has spent $150 in total on the hotel facilities and it is time for the customer to

check out of the hotel. They use their card at the point of sale terminal to settle the bill. This is

reflected in Vault using the Settlement Posting Type which will zero out the Pending Outgoing

phase to reflect the change to the committed phase in the customer’s balance