When creating a business model, you select the revenue recognition parameters for the PMC commission, recurring owner expenses or charges, and additional fees. The recognition parameters define the date that a transaction will be recognized in your accounting, regardless of when the guest payment is received.
The options are:
- Check-in: The transaction will be recognized upon check-in, even if the guest paid before the check-in date
- Check-out: The transaction will be recognized upon check-out, even if the guest paid before the check-out date
- Nightly: The transaction will be recognized on a nightly basis, with a journal entry created for each night separately. For example, if a reservation runs from 25 May until 5 June, the transaction will be recognized for each night even though they are in two different months. Learn more.
Note:
The above applies to accrual basis accounting. If you are on cash basis accounting, learn more here.