The 'Credit Rental Income' screen automates the allocation and processing of the rental income due to the owners. The rental income due from each reservation will automatically trigger to this screen once it meets the set disbursement rule. The amounts are derived from reservations and other income/expenditure sources. The amount can be overridden by entering a new amount in the 'Balance Due To Owner' column prior to processing.
Before proceeding to credit the owner amounts, please ensure that the disbursement rule has been applied to each reservation source.
Once the reservation has met the rule, it will trigger into the first grid ready to process. Reservations for the date period applied that have not yet met the rule, will appear in the second grid. Typically, a reservation won't meet the rule if full payment has not been applied. From the grid, open the reservation folio to apply payment and audit the reservation. Once it meets the rule, it will automatically trigger into the first grid ready to send to the owner.
To credit the rental income to the owners, go to:
- Accounting > End of Month Process
- Credit Rental Income
Step One: Specify Rule/Statement Date & Ignore Reservations Date
First specify the rule/statement date. For example, if the disbursement rule is set to 'Departure Date has passed and full payment is received,' specify 'Departure Date' from the options:
Setting the rule/statement date will refresh the grid and load the reservations that meet the rule either based on arrival, departure, or the prorated amount. Also, when processing the rental income, it will reflect on the statement date based on the date set here. For example, if the reservation dates are March 30th to April 5th and the rule/statement date is set to departure, then the rental income for this reservation will reflect on the April monthly statement. If set to arrival, it will appear on the March statement.
Next, to load the reservations in the grid more accurately, specify a start date so the grid will not load reservations departing before the set date. For example, if you are producing statements for January 2022 and onward, set 'January 1st' as the date. Any reservations departing before this date will not appear in the grid.
Step Two: Audit the Reservations/Rental Income
Notice that there are two grids on this screen that display reservations. The first grid only displays the reservations that have met the exact disbursement rule and are ready to be processed to the owner.
The second grid displays any reservations that do not meet the parameters of the disbursement rule and must be audited before the rental income can be sent to the owner. In most cases, reservations will reflect here if the disbursement rule is one of the following:
- Arrival date has passed and payments received >= Booking Total
- Departure date has passed and payments received >= Booking Total
Since the parameters of this rule require that full payment is applied to the reservation, if only partial payment has been applied or payment is missing from the reservation folio, it will not allow you to process the rental income to the owner.
What's my disbursement rule?
Audit the reservations from the second grid to ensure that full payment is applied.
To do so, click on the 'gear' icon to open the reservation folio:
Notice in the screenshot above, either no payment or only partial payment has been paid by the guest, therefore, they are not ready to be processed.
Within the reservation folio, apply the payment:
Once full payment is applied and the reservation meets the rule, it will automatically move to the first grid ready to process the rental income.
Step Three: Select and Process Rental Income
Review and audit the information in the grid before processing. Ensure that the PMC commission, any applicable fees such as credit card fees, channel commissions and/or pool heat and the total due to the owner are all accurate.
To further audit the amounts, open the reservation folio using the 'gear' icon and verify the amounts are correct under the 'Financials' tab > 'PMC Commissions & Owner Amounts." This section shows what has been paid by the guest, the amount due to the PMC and the totals due to the owner:
To process the rental income, first use the checkbox in the first column to select either all or some reservations to process to the owners:
Specify the following:
- Verify that the rule/statement date is set as explained earlier.
- Specify whether or not to itemize the PMC commission in the owner account; doing so will include the commission in the rental income line item and then deduct it as a debit on a separate line item.
- If the owner retains the pool heat fee, specify whether or not to itemize it as a credit in the owner account.
- If the owner retains the cleaning fee, specify whether or not to itemize it as a credit in the owner account.
Finally, click 'Process Selected' to process the rental income to the owner's account. Doing so will remove the processed reservations from the grid.
After processing, the reservations will be removed from the grid and will appear on the owner's account to credit them for the rental income.
If the commission was itemized, one line item will reflect the rental income including the commission, and the second line item will show the commission as a debit for the owner to see the amount deducted.
The ending balance reflects the new amount due to the owner.
What if a reservation is canceled or a partial refund is issued to the guest after crediting the rental income?
When a full or partial refund is issued to the guest, it is important to update the grand total of the reservation to reflect the new amount that the guest has paid. This way, the system can calculate the new amount due to the owner. The reservation will once again trigger to the 'Credit Rental Income' screen if there is a discrepancy between the reservation total versus the amount already credited to the owner. From the screen, the total will reflect the difference to re-process to the owner.
Rental income can also be processed for canceled reservations if proceeds are still due to the owner from the 'Credit Rental Income' screen. A checkbox will appear in the "Canceled' column to indicate that it is a canceled reservation. The steps are the same to process the rental income for canceled reservations.
Please sign in to leave a comment.