This article explains what Operational Revenue is in RMS, how it is calculated, and the timing rules that determine when accommodation charges, sundry charges, and discounts are classified as operational versus financial revenue.

Operational revenue reporting is the accommodation value of a reservation distributed across the reservation dates. This guide explains what operational revenue is, how it's calculated, and how different transaction types affect your revenue reporting in RMS.

Overview

How is Operational Revenue Calculated?

Any transactions where the assigned GL Acc Code has been ticked to 'Include in Accommodation Revenue for Reporting' will be included in operational revenue. Only charges applied to reservation accounts are included in the calculations for Operational Revenue using the rules below.

What Affects Operational Revenue by Timing and Status

Accommodation Revenue on or After the Departure Date

When accommodation revenue is posted to a reservation account on or after the reservation's departure date, it will be applied as operational revenue to the departure date. This accommodation revenue will only contribute to 'Revenue Totals' and will not be included in 'Reservation', 'Room Night', or 'Occupancy' calculations for that date.

In this example, a sundry charge was applied to the reservation account after the departure date.

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.

• Days 1, 2 & 3: The report would show as $100 per reservation night.
• Day 4: The report would show $20 from the sundry charge applied after the departure date.

Financial Revenue:

Accommodation revenue would be reported against each accounting date a transaction was applied to the account.

• Days 1, 2 & 3: The report would show as $100 per reservation night.
• 4 days After Departure: The report would display $20 as accommodation revenue.

What Operational Revenue Looks Like for Different Rate Types

Reservations: Full Rate Applied to the Account

When all reservation nights have been posted to the account, the accommodation revenue will be included as operational revenue.

Total Rate Posting

The total rate created on the account will evenly divide the amount across the number of reservation nights using the reservation stay dates.

Operational Revenue:

The accommodation revenue would be reported as the total rate divided by the transaction's accommodation dates.

• Days 1, 2 & 3: The report would show $100 per reservation night.

Financial Revenue:

The accommodation revenue would report $300 on the accounting date the transaction was posted to the reservation account.

• Day 1: The report would show $300 in revenue.
• Days 2 & 3: The report would not show any revenue for this reservation.

Nightly Rate Posting

The nightly rate posted to the account for each transaction's accommodation date will be included as operational revenue.

Operational Revenue:

The accommodation revenue would display at $100 per reservation night.

• Days 1, 2 & 3: The report would show $100 per night.

Financial Revenue:

The accommodation revenue would be reported as $100 on each accounting date where a nightly rate is applied to the reservation account.

• Days 1, 2 & 3: The report would show $100 per reservation night.

Reservations: Partial or No Rate Applied to the Account

When a reservation has not had a rate applied to the account for the appropriate reservation dates, the accommodation revenue will be included in the operational revenue as a projection.

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 rate.

Total Rate Posting

The total rate quoted on the reservation account will evenly divide the amount across the number of reservation nights using the reservation stay dates.

In this example, the total rate was voided, and a new total rate was posted with a different amount.

Operational Revenue:

The accommodation revenue would be reported as $90 per reservation night by dividing the Total Rate of $270 with the transaction's accommodation dates.

• Days 1, 2, & 3: The report would show $90 per reservation night.

Financial Revenue:

The accommodation revenue would be reported against each accounting date a transaction was applied to the account.

• Day 1: The report would show $300 in revenue.
• Day 2: The report would not 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).

Nightly Rate Posting

The quoted nightly rate for any reservation dates where the rate has not been posted to the account will be included as operational revenue.

In this example, the nightly rate was voided, and a new nightly rate was posted with a different amount.

Operational Revenue:

• Days 1, 2, & 3: The report would show $90 per reservation night.

Financial Revenue:

The 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 $100 in revenue.
• Day 2: The report would show as $80 (-$100 voided rate + $90 + $90).
• Day 3: The report would show as $90.

What Affects Operational Revenue by Charge Type

Additionals

Charges for additional guests will report against the category or rate GL Acc Code unless a separate GL Acc Code has been assigned to the Additionals menu of the rate table (as below).

When a GL Acc Code has been assigned to the Additionals tab, it will only be included in operational revenue if the selected GL Acc Code has been setup to be included in accommodation revenue.

Cancellations & No Shows

When a reservation is changed to a status of Cancelled or No Show, any accommodation revenue that has been posted on the account will be included in operational revenue. Operational revenue for Cancelled & No Show reservations will apply to the Arrival Date of the reservation and will only be included in 'Revenue Totals' and not in 'Occupancy' or 'Room Night' calculations for that date.

If the property uses a cancellation/no show fee sundry to consume any deposit payment retained, it will only be included in operational revenue if the sundry charge applied has a GL Acc Code setup to be included in accommodation revenue.

Discounts

• Discounts configured to Use Targeted GL Acc Code will report against the GL Acc Code of the transaction they are allocated to.
• When a discount is setup to use a Use Default GL Acc Code, it will only be included in operational revenue if the selected GL Acc Code has been setup to be included in accommodation revenue.

Packages

Packages setup on a rate or as a standalone sundry package can consist of multiple components. The individual package components will only be included in operational revenue where the selected sundry charge includes a GL Acc Code setup to be included in accommodation revenue.

Periodic Charges

Periodic charges where the selected sundry charge includes a GL Acc Code setup to be included in accommodation revenue will be included in operational revenue. The report will show the accommodation revenue as the periodic charge value divided by the periodic charge dates.

In cases where the periodic charge dates do not align with the reservation stay dates, the accommodation revenue will be applied to the closest corresponding reservation date. For example, a periodic charge with dates beginning prior to the reservation arrival will apply the 'pre-reservation' portion of the accommodation revenue to the arrival date. Each periodic charge date within the reservation will then be allocated accordingly.

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).
• Days 2 & 3: The report would show as $100 per reservation night.

Financial Revenue:

• 4 Days Before Arrival: The report would show $20 in accommodation revenue.
• Days 1, 2 & 3: The report would show as $100 per reservation night.

Quote Reservations

Reservations in a 'Quote' status will not be included in operational revenue.

Repeat Charges

Repeat charges where the selected Sundry Charge includes a GL Acc Code setup to be included in accommodation revenue will be included in operational revenue. The report will show the operational revenue for the reservation as the Repeat Charge value divided by the repeat charge dates.

When a repeat charge cannot be evenly divided across all repeat charge dates, the excess amount will be applied to the final repeat charge date for that period. In cases where the repeat charge dates do not align with the reservation stay dates, the accommodation revenue will be applied to the closest corresponding reservation date. A repeat charge with dates ending after the reservation departure will apply the 'post-reservation' portion of the operational revenue to the reservation's Departure Date.

In this example, the repeat charge was applied on the arrival date.

Operational Revenue:

The 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 $33.33 in revenue.
• Day 2: The report would show $33.33 in revenue.
• Day 3: The report would show as $33.34 (including the remaining 1 cent unable to be evenly divided across reservation dates).

Financial Revenue:

The accommodation revenue would be reported as the repeat charge value on the accounting date it was applied to the reservation account.

• Day 1: The report would show $100 in revenue.
• Days 2, 3 & 4: The report would show $0.

Sundry Charges

When a Sundry Charge is applied to a reservation account and the assigned GL Acc Code is setup to be included in accommodation revenue, this will be included in Operational Revenue for the closest corresponding reservation stay date.

In this example, a sundry charge was applied before the arrival date of the reservation.

Operational Revenue:

Any accommodation revenue charges applied before 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 $120 ($100 Rate + $20 Sundry).
• Days 2 & 3: The report would show $100 per reservation night.

Financial Revenue:

The accommodation revenue would be reported on the accounting date it was applied to the reservation account.

• 4 Days Before Arrival: The report would show $20 in accommodation revenue.
• Days 1, 2 & 3: The report would show $100 in revenue per night.

Sundry Charge: Late Posting

A Sundry Charge applied to the reservation account several days after the Departure Date will have the accommodation revenue reported as Operational Revenue for the reservation's Departure Date.

In this example, a sundry charge was applied after the reservation departure date.

Operational Revenue:

• Days 1, 2 & 3: The report would show $100 per reservation night.
• Day 4: The report would show $20 from the sundry charge applied after the departure date.

Financial Revenue:

The accommodation revenue would be reported on each accounting date a transaction was applied to the account.

• Days 1, 2 & 3: The report would show $100 in revenue per night.
• 4 Days After Departure: The report would show $20 in accommodation revenue.

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