Revenue is recognized in Accounting is based on your business model setup, and then on any manual adjustments made such as changing the accommodation fare in a reservation, adjusting the PMC commission, or a reservation modification made via the booking channel.
The "recognition date" defines the date that a particular transaction will be recognized in Accounting and on the owner statement. The original service item in a reservation may be recognized in one month, while the transaction for a change made to that same reservation will appear the following month. Learn more and see examples below.
Business model setup
Note:
This applies to accrual basis accounting. If you are on cash basis accounting, revenue recognition is based on payment.
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 is recognized in your accounting, regardless of when the guest payment is received.
The options are:
- Check-in: The transaction is recognized upon check-in, even if the guest paid before the check-in date.
- Check-out: The transaction is recognized upon check-out, even if the guest paid before the check-out date.
- Nightly: The transaction is 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.
Guest folio adjustment in Guesty
You can make adjustments or add line items in the guest folio, with the option to change the realization date (within the parameters of a locked accounting period).
The adjustment may appear in a different month from the original service item.
A reservation checked in on 27 June and checked out on 5 July. The recognition date on the business model is check-out.
On 7 July you determine the guest is owed a refund, and adjust the accommodation fare by -$50. The realization date you select when making the adjustment determines when this transaction will be posted to the accounting folio and included in the owner statement.
If you want the adjustment to be shown in June: Select 27June (check-in date) as the realization date.
If you want the adjustment to be shown in July: Select a date in July as the realization date.
PMC commission adjustment in Guesty
If a specific reservation requires a PMC commission percentage different from what is set up in the business model, you can adjust the PMC commission amount in the reservation. The change will increase or decrease the owner's revenue, and if you are charging the owner VAT for the commission, that will also be adjusted.
The recognition date cannot be changed. The system will recognize the adjustment on the date it is made, not based on the business model logic.
The adjustment may be a different month from when the reservation occurred.
Adjustment made via channel (automatic)
If a reservation is changed via the booking channel, the recognition date for the adjusted line item is based on your related business model logic, including locking accounting periods.
Change to the accommodation fare
|
Business model line item recognition date |
Locking period status |
Recognition date |
|---|---|---|
| Check-in | Is not locked | Check-in date |
| Check-in | Is locked | Date the adjustment is made |
| Check-out | Is not locked | Check-out date |
| Check-out | Is locked | Date the adjustment is made |
Change to a fee
|
Fee calculation rule |
Check-in date |
Recognition date |
|---|---|---|
| Nightly | Is in the future | Check-in date |
| Nightly | Is in the past | Date the adjustment is made |
No locking period
A reservation checked in 27 June and out 5 July. In the related business model the recognition date is check-out. The accounting period is not locked.
A change is made to the reservation via the booking channel on 4 July.
The recognition date is 5 July: The adjustment is posted to the accounting folio in July.
Locking period
A reservation checked in 5 September and out 15 September. In the related business model the recognition date is check-in. The accounting period is set to lock monthly, which means that as of 10 October the September transactions are locked.
A change is made to the reservation via the booking channel on 20 September:
- Accounting period is not locked, therefore the recognition date is 5 September
- The adjustment is posted to the accounting folio in September
A change is made to the reservation via the booking channel on 02 October:
- Accounting period is not locked, therefore the recognition date is 5 September
- The adjustment is posted to the accounting folio in September
A change is made to the reservation via the booking channel on 15 October:
- Accounting period is locked, therefore the recognition date is 15 October
- The adjustment is posted to the accounting folio in October
Airbnb resolution center item
A line item called "Airbnb resolution center" (ARC) in the guest folio is a closed resolution from Airbnb. The recognition date on the ARC line item reflects when it was sent to Guesty, which can be after the refund or payment actually happened. Learn more about the limitations and how an ARC item appears Guesty.