The 'Process Taxes' screen is used for property manager's who remit the tax on behalf of the owners but would like to itemize the tax as debits on the statements. Rather than sending just the net amount (after tax), this method provides a full and itemized breakdown to the owner so they can clearly see the taxes being remitting on their behalf.

Only proceed with processing taxes if you are sending the gross rental income (including taxes) to the owner and wish to debit and itemize the taxes.

If you are sending the net amount to the owner or if the owner remits the taxes themselves, please do not process taxes as it will cause financial discrepancies.

Tax Settings

Before processing taxes, it is important to ensure that the correct tax setting has been configured.  

To do so, go to:

  1. Global Settings > Settings Assistant
  2. Navigate to "Tax Settings" from the left menu

Scroll down to 'Send Net or Gross Amount to Owner Statement'

When crediting rental income to the owners statement, send either the net or the gross amount. The net amount is the rental income  excluding tax. To send the net amount, enable this setting. To send rental income including taxes, disable this setting. Typically, there are three scenarios that apply for this setting:

  1. The property manager is remitting taxes on behalf of the owner and DOES NOT want to itemize the tax on the owner statements. Therefore, sends the net rental income and should check this setting.
  2. The property manager is remitting taxes on behalf of the owner, and DOES want to itemize the tax on the owner statements. Therefore, send the gross rental income and debit the tax as a separate line-item and should uncheck this setting to send the gross.
  3. The owner is remitting the tax, therefore, the gross rental income is sent and should uncheck this setting to send the gross.

For scenario two, follow the steps in the rest of this User Manual to itemize the taxes on the owner statements.

For scenario three, when the rental income is credited to the owner, it will include the taxes as a credit to the owner, so no further action is needed.

Processing Taxes to Owner Accounts

To process taxes, go to:

  1. Accounting > End of Month Process
  2. Process Taxes

Step One: Apply the Filters

First specify the date range (based on departure date) to load the reservations in the grid. For example, to process only the taxes from last month, specify 'Last Month' from the dropdown:

Choose to include owner and cancelled reservations if taxes will be processed for these reservation types"

Step Two: Process Tax

Review and audit the reservations in the grid to ensure that the tax amount is correct. The amounts are based on your tax settings and tax location set against each unit. If a discrepancy is spotted, go to the reservation folio to update the amounts and recalculate the tax.

If the checkbox within 'Sent to Owner Account?' is checked, this means that the taxes for this reservation has already been processed to the owner's account.

To process the tax:

  1. Use the checkbox in the first column to select all or select the applicable taxes to process
  2. Click 'Process Selected'

After processing, the taxes will appear as a debit line item on the owner's account to itemize the tax that has been remitted on the owners behalf. The rental income is the gross amount including taxes, and then the tax is deducted in the following line items:



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