Revenue recognition in Accounting for long-term reservations

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. Learn more.

If you frequently book long-term reservations that span over more than one month, you may want to set your revenue recognition to nightly.

If your revenue recognition is set to check-in or check-out, but you would like to make an exception for the occasional long-term reservation, you can manually adjust the specific reservation.

For example:

Reservation is made for check-in August 15, check-out December 15. Total revenue is $25,000.

The related business model recognition is check-in. $25,000 for this reservation is recognized on August 15.

You would like to recognize $5,000 per month over the 5 months of the reservations. To achieve this, you can make adjustments to the reservation's guest folio to manually redistribute the total amount. Using the above example:

  1. Adjust the accommodation fare (-$20,000) with a realization date in August
  2. Adjust the accommodation fare  +$5,000 with a realization date in September
  3. Adjust the accommodation fare  +$5,000 with a realization date in October
  4. Adjust the accommodation fare  +$5,000 with a realization date in November
  5. Adjust the accommodation fare  +$5,000 with a realization date in December
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