Pilot: How fractional ownership appears in Accounting

Fractional ownership allows multiple individuals or entities to share ownership of a single property, each holding a defined percentage stake. This enables you to assign multiple owners to the same property, ensuring accurate management of financial and ownership data within Guesty. 

Once you've assigned multiple owners to a property and defined each owner's percentage share, the fractional ownership is displayed in Accounting in the following ways. 

Important:

Any changes made to listing ownership will apply to newly created reservations only. To apply the changes to existing reservations, you must reprocess the reservations.

Accounting folio

After fractional ownership has been defined for a listing, the accounting folio for new reservations shows the transactions related to each owner under separate tabs. Transactions are split according to the fractional ownership percentages defined, including:

What happens if the ownership percentage is changed?

If you make changes to the fractional ownership percentages, the Accounting folio tab header in all reservations reflects the most current ownership split. This may not be the same as the calculations for specific reservations within the folio, depending on when the reservation was made and if it was reprocessed.

For example: 

Fractional ownership is set at 50/50 between two owners. Five reservations are made with the 50/50 ownership split. Then, the ownership percentage is changed to 60/40. Three new reservations are made, calculated with the 60/40 ownership split.

The Accounting Folio tab headers for ALL reservations shows 60/40, based on the current listing configuration.

For the first five reservations, the calculation is still 50/50. To update the fractional ownership calculations to 60/40, you must reprocess each reservation

Owner statement

If a listing is assigned to more than one owner, then the owner statement displays only the relevant amount paid to each owner, reflecting their respective ownership percentages, ensuring accurate representation for each individual. 

Balances report

The balances report presents the correct owner balance by splitting the owner revenue according to each owner's percentage, ensuring that the disbursement amounts are precise.

Owner portal and reservations 

Any charges added to owner reservations will charge only the owner who booked the reservation. 

In the owner portal, the owner can distinguish their own reservations from reservations made by other owners, as well as from guest reservations.

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