Examples of Financial vs Operational Revenue
Accommodation Revenue Example for Financial vs Operational Revenue in RMS.
Example #1
Rate Creation Method of Total Rate on Reservation Arrival
| Reservation Day | Financial Revenue | Operational Revenue |
|---|---|---|
|
Day 1 Arrival Date |
$300 | $100 |
|
Day 2 In House |
$0 | $100 |
|
Day 3 In House |
$0 | $100 |
|
Day 4 Departure Date |
$0 | $0 |
Financial Revenue
Accommodation Revenue would be reported as a total of $300 on the accounting date the transaction was posted to the reservation account.
Day 1 the report would show as $300.
Day 2 & Day 3 the report would not show any revenue for this reservation.
Operational Revenue
Accommodation Revenue would be reported as the Total Rate divided by the transaction's accommodation dates.
Day 1, Day 2 & Day 3 the report would show as $100 per reservation night.
When the Total Rate has not been applied to the reservation account, the report will project the Accommodation Revenue using the Quoted Total Rate.
Reservations must have a valid Rate Type, be a Status of Unconfirmed, Confirmed or Arrived and not be set to Long Term for the Operational Revenue to be projected using the Quoted Total Rate.
Example #2
Voiding Total Rate to Reapply at a Different Amount
| Reservation Day | Financial Revenue | Operational Revenue |
|---|---|---|
|
Day 1 Arrival Date |
$300 | $90 |
|
Day 2 In House |
Voided Total Rate - $300 |
$90 |
|
Day 3 In House |
Recreated Total Rate at a lower amount. $270 |
$90 |
|
Day 4 Departure Date |
$0 | $0 |
Financial Revenue
Accommodation Revenue would be reported against each accounting date a transaction was applied to the account.
Day 1 the report would show as $300.
Day 2 the report would show as -$300 (when the Total Rate was voided).
Day 3 the report would show as $270 (when the Total Rate was re-posted at a lower amount).
Operational Revenue
Accommodation Revenue would be reported as $90 per reservation night by dividing the Total Rate of $270 with the transaction's accommodation dates.
Example #3
Rate Creation Method of Nightly Rate on Reservation Arrival & Each Reservation Night
| Reservation Day | Financial Revenue | Operational Revenue |
|---|---|---|
|
Day 1 Arrival Date |
$100 | $100 |
|
Day 2 In House |
$100 | $100 |
|
Day 3 In House |
$100 | $100 |
|
Day 4 Departure Date |
$0 | $0 |
Financial Revenue
Accommodation Revenue would be reported as $100 on each accounting date where a Nightly Rate is applied to the reservation account.
Operational Revenue
Accommodation Revenue would be reported as $100 per reservation night.
When the Nightly Rate has not been applied to the reservation account, the report will project the Accommodation Revenue using the Quoted Nightly Rate.
Reservations must have a valid Rate Type, be a Status of Unconfirmed, Confirmed or Arrived and not be set to Long Term for the Operational Revenue to be projected using the Quoted Nightly Rate.
Example #4
Voiding Nightly Rate to Reapply a Different Amount
| Reservation Day | Financial Revenue | Operational Revenue |
|---|---|---|
|
Day 1 Arrival Date |
$100 | $90 |
|
Day 2 In House |
Voided Day 1 Rate - $100Recreated Day 1 Rate $90Created Day 2 Rate $90Total: $80 |
$90 |
|
Day 3 In House |
$90 | $90 |
|
Day 4 Departure Date |
$0 | $0 |
Financial Revenue
Accommodation Revenue would be reported as the sum of transactions applied to the reservation account for the date reported.
Day 1 the report would show as $100.
Day 2 the report would show as a balance of $80 (-$100 + $90 + $90).
Day 3 the report would show as $90.
Operational Revenue
Accommodation Revenue would be reported as $90 per reservation night.
The Day 1 Rate re-posted on Day 2 would be assigned as revenue to Day 1 by referencing the transaction's accommodation date.
Example #5
Applying a Sundry Charge Before the Reservation Arrival Date
| Reservation Day | Financial Revenue | Operational Revenue |
|---|---|---|
|
4 Days Before Arrival |
Sundry Charge with GL Code Setup as Accommodation Revenue $20 |
|
|
Day 1 Arrival Date |
$100 | $120 |
|
Day 2 In House |
$100 | $100 |
|
Day 3 In House |
$100 | $100 |
|
Day 4 Departure Date |
$0 | $0 |
Financial Revenue
Accommodation Revenue would be reported against each accounting date a transaction was applied to the account.
4 Days Before Arrival would report $20 accommodation revenue.
Day 1, 2 & 3 the report would show as $100 per reservation night.
Operational Revenue
Any Accommodation Revenue charges applied prior to the reservation's Arrival Date would be assigned to the revenue for the Arrival Date if the transaction did not include an accommodation date.
Day 1 the report would show as $120 ($100 Rate + $20 Sundry).
Day 2 & 3 the report would show as $100 per reservation night.
Example #6
Applying a Sundry Charge After the Reservation Departure Date
| Reservation Day | Financial Revenue | Operational Revenue |
|---|---|---|
|
Day 1 Arrival Date |
$100 | $100 |
|
Day 2 In House |
$100 | $100 |
|
Day 3 In House |
$100 | $100 |
|
Day 4 Departure Date |
$0 | $20 |
|
4 Days After Departure |
Sundry Charge with GL Code Setup as Accommodation Revenue $20 |
$0 |
Financial Revenue
Accommodation Revenue would be reported against each accounting date a transaction was applied to the account.
Day 1, 2 & 3 the report would show as $100 per reservation night.
4 Days After Departure would report $20 as accommodation revenue.
Operational Revenue
Any Accommodation Revenue charges applied after the reservation's Departure Date would be assigned to the revenue for the Departure Date if the transaction did not include an accommodation date.
Day 1, Day 2 & Day 3 the report would show as $100 per reservation night.
Day 4 the report would show as $20 from the Sundry Charge applied after the Departure Date.
Example #7
Repeat Charge for Accommodation Applied on Arrival Date
| Reservation Day | Financial Revenue | Operational Revenue |
|---|---|---|
|
Day 1 Arrival Date |
$100 | $33.33 |
|
Day 2 In House |
$0 | $33.33 |
|
Day 3 In House |
$0 | $33.34 |
|
Day 4 Departure Date |
$0 | $0 |
Financial Revenue
Accommodation Revenue would be reported as the Repeat Charge value on the accounting date it was applied to the reservation account.
Day 1 would report $100 accommodation revenue.
Operational Revenue
Accommodation Revenue would be reported as a portion of the Repeat Charge value divided across the Repeat Charge date range, with any leftover amount assigned to the final date in the date range.
Day 1 the report would show as $33.33.
Day 2 the report would show as $33.33.
Day 3 the report would show as $33.34 (including the remaining 1 cent unable to be evenly divided across reservation dates).