This article explains how to manually adjust the Net Rental Income (NRI) and PMC Commission on a reservation by creating journal entries. Following these steps ensures that revenue and commissions are calculated accurately and your accounting ledgers remain balanced.
There are several situations where you might need to adjust the NRI on a reservation, such as applying discounts retroactively, correcting billing discrepancies, or accounting for external platform markups.
The process requires creating three sequential journal entries in the reservation’s accounting folio.
For example: A pre-Guesty reservation is recorded with an accommodation fare of $3,630 because it includes an unseen $330 OTA markup. You want to adjust the NRI down to exclude that markup. The split is 70% Owner / 30% PMC.
- Original Accommodation Fare: $3,630 (includes a $330 OTA markup)
- Target NRI (excluding markup): $3,300
- Adjustment Amount: $330
Quick Reference Table
Create three sequential journal entries in the reservation’s folio:
| Entry | Goal | Debit (Decrease) | Credit (Increase) | Amount | Expense Category |
| 1 | Lower Owner NRI | Owner | Advanced Deposit | $330.00 | Rental Income |
| 2 | Reduce PMC Fee | Accounts Payable (PMC) | Owner | $99.00 | Management Fee |
| 3 | Clear Deposit to PMC | Advanced Deposit | Accounts Payable (PMC) | $330.00 | Markup |
Note:
For information on changing the price or adding other items, such as additional fees, see Adjusting a reservation's guest folio for Accounting users.
Step by step instructions
Step by step:
- Sign in to your Guesty account.
- In the side navigation menu, select
Reservations. - Select the relevant reservation.
- In the left submenu, click Accounting.
Step by step:
- To the right of "Folio", click Add journal entry.
- In the "Name" field, enter "Net Rental Income".
- Choose the relevant recognition date.
- Enter a freeform description, e.g. "adjust NRI".
- For "Category", select Rental Income.
- Set the "Debit" to Owners and select the owner for the full amount ($330 in our example).
- Set the "Credit" to Advanced Deposit for the same amount ($330).
- In the bottom-right corner, click Add.
Step by step:
- To the right of "Folio", click Add journal entry.
- In the "Name" field, enter "Commission".
- Choose the relevant recognition date.
- Enter a freeform description, e.g. "adjust NRI".
- For "Category", select Management Fee.
- Set the "Debit" to Accounts Payable and select the PMC for the commission portion (30% of $330, or $99 in our example).
- Set the "Credit" to Owners and select the owner for the same amount ($99).
- In the bottom-right corner, click Add.
Step by step:
- To the right of "Folio", click Add journal entry.
- In the "Name" field, enter "Clear advanced deposit".
- Choose the relevant recognition date.
- Enter a freeform description, e.g. "adjust NRI".
- For "Category", select Markup.
- Set the "Debit" to Advanced Deposit for the full adjustment amount ($330 in our example).
- Set the "Credit" to Accounts Payable and select the PMC for the same amount ($330).
- In the bottom-right corner, click Add.