Pilot: Creating a business model (new feature setup)

This article explains how to create and manage business models in Guesty's Accounting module. You'll learn how to use the setup wizard to define income, commissions, and fee allocations. To manage, edit, and archive your models see Pilot: Managing existing business models (new feature setup).

Create a new business model

The business model wizard guides you through the setup process. This includes defining the net rental income, setting the property management company (PMC) commission, and configuring default settings for how fees, taxes, and other deductions are handled.

1. Sign in to your Guesty account.
2. In the side navigation menu, click Accounting to open the dropdown menu.
3. Under Accounting setup, select Business models.
4. In the top-right corner, click + Add business model.
5. In the bottom-right corner, click Next.
6. Follow the steps below in the wizard.

Step 1: Define net rental income (NRI)

The net rental income is the basis for calculating commissions. You can use a default configuration or manually select which items are included as income and which are deductions. Accommodation fare is always included as income.

To use a manual configuration:

1. Select one of the following options:
   • Accommodation fare only
   • Accommodation + cleaning fee
   • Accommodation fare minus the channel fee
2. In the bottom-right corner, click Next.

To configure your own NRI:

Step by step:

1. Click Set up manually.
2. In the bottom-right corner, click Next.
3. Check the boxes to add items to the "Income" or "Deductions" columns. Use the search bar to filter the list of fees and expenses by name.
   • For example, add all guest taxes or select specific taxes to add to "Income".  Deductions include channel commission and weekly/monthly discount.
4. To add GST or VAT to the accommodation fare, click Accommodation fare. From the dropdown, select include GST/VAT.
5. In the bottom-right corner, click Next.

Step 2: Set up PMC commission

Define the commission percentage for you, the property management company (PMC), and how it's recognized.

1. Set the commission percentage using the slider or by typing in the text box.
2. From the "Recognition" dropdown, select when the revenue is recognized: Check-in, check-out, nightly, or upon payment. Learn more about payment recognition options.
3. (Optional) Configure the following settings:
   • Toggle on Do you charge owner tax on commission? to charge owner tax (e.g., VAT or GST) on the commission.
   • Toggle on Do you want to set a minimum commission? and set a flat minimum commission amount.
4. In the bottom-right corner, click Next.
5. (Optional) Configure the following exceptions:
   • Toggle on Different commission for canceled reservations? By default, 100% is assigned to the PMC.
   • Toggle on Apply different calculations per channel or source? Select specific channels and set their PMC commission amount.
6. In the bottom-right corner, click Next.

Step 3: Configure defaults for fees, taxes, and deductions

Set global default rules for how payments and revenue are allocated between the PMC and the owner. You can override these defaults for individual items.

1. To set a global default, click next to a category (e.g., "Fees").
2. In the side panel, adjust the "Default split" and "Default recognition".
3. Click Save.
4. To override the default for a specific item, click Edit items, then click next to the item you want to change.
5. Adjust the split and recognition for that specific item. 
6. Click Save.
7. The "Control" status for this item will change from "Default" to "Manual".

8. Repeat this process for all relevant items under "Fees", "Guest Taxes", and "Deductions".

   Note:

   Any new fees, taxes, or deductions you create later will automatically use the default settings you establish here.

9. In the bottom-right corner, click Next.

Step 4: Add model details

Finalize the business model by giving it a name and an activation date.

1. Enter a "Name" for the business model.
2. Select an "Activation date". This is the date from which journal entries will be created based on this model.
3. (Optional) Select an existing "Category" or type a new one to help organize your models.
4. In the bottom-right corner, click Next.

Step 5: Assign listings and activate

Assign properties to the business model to activate it.

1. Click Assign listings. In the side panel, select the relevant option:

   1. Specific properties: Manually select individual listings. To add more later, click Unassigned and check the boxes for the properties you want to include.

   2. Assign by rule: Set dynamic filters, such as city, country, tag, connected channel, or brand, to assign current and future properties automatically when they match these criteria.

      Note:

      If filtering by specific channels or sources, any new channels or sources created in the future need to be added manually.

   3. All: Apply to all current properties and automatically include any future properties added, including future channels or sources integrated with Guesty.

2. In the bottom-right corner, click Done.

3. Click Activate model.

4. Click New model to create another business model, or Exit setup.