Does Guesty have partial recognition in Accounting?

Yes, we do. In the business model, you choose the recognition date for the PMC commission, such as check-in or check-out. That date applies to the owner VAT (if you charge them for VAT on your commission) and the net rental income (since your commission is calculated out of the NRI).

If you use cash basis accounting and your guest pays for part of the reservation, we will check - on the PMC commission recognition date - if that payment is enough to cover the 3 transactions:

  • NRI
  • PMC commission
  • Owner VAT

If the partial payment is more than the sum of these transactions, we will recognize it.

Example:

The total amount of the reservation is $2,000.

The guest pays $1,500 at check-in.

Since the PMC commission is recognized at check-in, we sum up the 3 transactions at check-in:

  • NRI: $1,600
  • PMC commission: $-100
  • Owner VAT: $-50

The sum is less than what the guest paid (1,600-100-50=1,450), so we recognize the guest's partial payment.

Note:

All other transactions, such as additional fees or taxes that are not included in the calculation of the NRI, will only be recognized when the reservation is fully paid.

Was this article helpful?
1 out of 1 found this helpful