Accounting Options - Rate & Rent Options Tab – RMS Help Center

This article explains each setting on the Rate & Rent Options tab of Accounting Options in RMS and what it does.

Overview

The 'Accounting Options' > 'Rate & Rent Options' tab offers a range of customisation options to configure the Property database.

Options include Rate Creation options, Rounding, Split Rates, BAR rates, recalculation rules, and Repeat Charge settings.

The tab is split into two groups. Rate Options control how reservation rates are created, displayed and recalculated. Rent Options control how Repeat Charges and rents are created and rounded.

Please Note! RMS is highly configurable. Some Terminology, User Access & Permissions, Images, Labels, and Functions used in these articles may differ from your setup. CLICK HERE to find out more.

In the side menu of RMS, go to Setup > Accounting > Accounting Options > Rate & Rent Options.

Rate Options

Select to create reservation rates on a Nightly or Total basis.

Nightly Rate - will apply to an individual transaction of accommodation charges for each reservation night.

Screenshot of the Rate and Rent Options tab in RMS Accounting Options showing the Rate Options and Rent Options settings.

Total Rate - will apply a single transaction of accommodation charges for the entire reservation.

Screenshot of the Rate and Rent Options tab in RMS Accounting Options with Rate Option set to Create Total Rate.

The Rate Option list also offers User to Choose. With User to Choose selected, the user chooses Nightly Rate or Total Rate for each reservation, using the Create Total Rate slider in the Account section of the reservation.

Screenshot of the Rate and Rent Options tab in RMS Accounting Options with Rate Option set to User to Choose.

Please Note! Changes to Rate Creation Method will only apply to reservations created after the change. To update existing reservations to the newly selected method, use the "Change of Rate Creation Method" utility in the Tools menu.

Create Rate For

Nightly rates can be setup to apply accommodation charges for a predetermined number of nights at a time or for the entire stay.

This option is only available when using Nightly Rates.

Choose Create Rate for and enter the number of nights to create at a time, or choose Create Rate for entire stay.

Select User to Choose Nights on Check In and Manual Rate Creation to prompt the user to choose how many nights of rate to create when a reservation is checked in and when a rate is created manually on the account. The prompt asks for the date to create rates up to, and rates cannot be created past the departure date. The prompt is not shown when nightly rates are updated in bulk, and the option cannot be used when Display Option is set to Post all nightly rates and display as total.

Tip! If staff are being prompted to choose nights more often than needed, clear the User to Choose Nights on Check In and Manual Rate Creation option.

Tip! This setting also controls how much of a reservation is reposted after a rate recalculation. Where the rate is created for the entire stay, changing the reservation dates and selecting 'Yes' to Rate Recalculation reposts the whole revised stay rather than only the nights that were voided. See Which Charges Are Voided and Recreated.

On Check In

Select how rates are created on Check-In, when the reservation status changes to Arrived. The On Check In list contains the following choices:

Create Rate - the rate is created at check-in. Don't Create Rate - the rate is not created at check-in. User to Choose - a prompt appears at check-in asking the user whether to create the rate. When reservations are checked in from the In/Out Movements screen, the answer is applied to all of the reservations being checked in.

Tip! For Arrived reservations, either this setting or On Res Creation will cause the full remaining stay to be reposted after a rate recalculation.

Display Option

This option is for display purposes on the account only and does not affect transaction dates.

The rate grouping will also be used on Statements and Tax Invoices.

Option only available if using Nightly Rates.

The Display Option list contains the following choices, each named for how nightly rates appear on the account:

Display Each Night Separately
User to Select Grouping Display on Account
Post all nightly rates and display as total

Calculate % Package Component of Rate after Discount has been applied

The Calculate % Package Component of Rate after Discount has been applied option makes a package that uses the Percentage Of Rate fee structure calculate its amount on the discounted rate instead of the original rate.

For example, a package set to 7.5% of the rate, on a reservation with a rate of 100.00 and a 10% discount, calculates as 7.5% of 90.00, which is 6.75. When the option is not selected, the package stays at 7.50, calculated on the original rate.

Please Note! This option only affects discounts applied after it is selected. To update an existing future reservation, remove and re-apply the discount, or run Recalculate Future Rates.

Round Base Rate to Nearest Dollar

Select this option to round Base Rates, Repeat Charges, and Discounts to the nearest dollar.

Caution: Rounding will also apply to OTA rates, which may cause a discrepancy between the Rate and the value provided in a VCC (Virtual Credit Card).

Day of the Week

The Day of the Week option has no effect. It is saved with the other settings on this tab, but nothing in RMS uses it, so selecting or clearing it does not change any rates, rate quotes or reservations.

Please Note! The Rate Table screens have a separate rate setting based on Night of Week, Per Night or Length of Stay. That setting is not controlled by this option.

On Res Creation

Select this option to create the accommodation charge on the Account when the reservation is created.

Tip! Where this option is enabled, Unconfirmed and Confirmed reservations repost every night of the revised stay after a rate recalculation, rather than only the nights that were voided.

Allow Split Rate

Allows the reservation rate to be divided by a percentage among the Guests on the reservation.

To manage room or Area changes during a stay, visit Apply Split Rate on a Reservation

Show 'Discount' Wording

The entered wording will replace the Discount description and display on the account whenever a Discount is applied.

Create Zero Rate Transactions on Accounts

Select to create a transaction on the account when the reservation rate is zero. When this option is not selected, no transaction is created for a zero rate. On screen the option is labelled "Create Zero Rate Transactions on Accounts (Only applies to total Rate)": it only applies to reservations that use the Total Rate method.

Use Multiple Best Available Rates (BAR)

The Use Multiple Best Available Rates (BAR) option activates Multi BAR, which lets you set a preconfigured rate level for each date, at property or Category level, from a BAR row on the Rate Manager Chart.

Before Multi BAR can be used, Rate Types for each rate level must be flagged as Best Available Rate, and Rate Tables and a Rate Lookup must be set up for each level. See the Multi BAR article for the full setup.

Please Note! After selecting this option, you may need to log out of RMS and log back in before the BAR row appears on the Rate Manager Chart.

Please Note! If this option is selected before Multi BAR is set up, or before a BAR is set for the dates being booked, rates can show as not available. Set up Multi BAR and set a BAR that covers those dates, or clear this option and log out and back in.

Recalculate the deposit when the Reservation is modified

Select this option to include the deposit amount and due date when the rate is recalculated after a reservation is modified. When the modification changes the deposit, RMS displays a prompt showing the previous deposit, the new deposit and the difference.

For how rate recalculation works, see Rate recalculation behaviour reference.

Rent Options

Rent Options control how Repeat Charges and rents are created and rounded.

Amount per Corner

Amount per Corner is a number field, not a tick box. It is a legacy figure that supplies the Amount Per Corner value shown on the Area screen. It does not affect rates, Repeat Charges or accounts.

To see where it is used, go to Setup > Category/Area, open a Category, select Area, open an Area and select the Description tab. The Physical Properties section holds the following fields: % Takings, Length, Width, Square Meters, Frontage, No Of Corners, Rental Per Sq. Mt., Amount Per Corner and Rental Fee.

Amount Per Corner and Rental Fee are display fields and cannot be edited on the Area. Rental Fee is calculated on the screen from Square Meters multiplied by Rental Per Sq. Mt., plus No Of Corners multiplied by Amount Per Corner.

Daily Breakdown for Repeat Charges

This option will create the Repeat Charge for the date range on the account, and a breakdown for reporting on a daily basis.

Create Rolled Forward Rentals

Select this option to roll forward all Repeat Charges a set number of days ahead of the scheduled date. Enter the number of days in the No of Days to RollOver Repeat Charges into the Future field.

Round Rent Up or Down

Select this option to round Repeat Charges, Base Rates, and Discounts up or down to the nearest 5 cents.

Caution: Rounding will also apply to OTA rates, which may cause a discrepancy between the Rate and the value provided in a VCC (Virtual Credit Card).

Calculate Prorata Days Based on a Year when Limit Last Charge is in Use

This option changes how the final, part-period Repeat Charge is calculated for a Repeat Charge that has Limit last charge to Until Date selected. On screen it is labelled "Calculate Prorata Days Bases on a year when limit last charge in use". For how to set up a Repeat Charge, see How to setup a Repeat Charge on an Account.

When the option is not selected, the final period is calculated from the length of the period. A monthly Repeat Charge uses the number of days in that calendar month, and a weekly Repeat Charge uses the weekly amount divided by 7.
When the option is selected, the daily amount for the final period is the charge multiplied by the number of periods in a year, divided by 365 (366 in a leap year). For a monthly Repeat Charge that is the monthly amount multiplied by 12, divided by 365. For a weekly Repeat Charge it is the weekly amount multiplied by 52, divided by 365.

For example, a Repeat Charge of 10,000.00 a month with 10 days remaining in the final period is charged at (10,000 x 12) / 365 = 328.77 per night when the option is selected. The option does not affect the Daily Breakdown for Repeat Charges calculation, and it only applies when a full period cannot be rolled.

Please Note! On a database with more than one property, this option is only available at the Default Settings level of Accounting Options. It does not appear when an individual property is selected.

Use Daily, Weekly, Monthly Calculations for Annual Valuation

This option changes how Repeat Charges are calculated from an Annual Valuation (AV). For how Annual Valuation is set up, see Annual Valuation.

When the option is not selected (the default), Annual Valuation is calculated day by day as the Annual Valuation divided by 365 (366 in a leap year) for each day in the period.
When the option is selected, a Repeat Charge that posts the full amount uses its period type. Monthly is the Annual Valuation divided by 12, multiplied by the number of periods. Weekly is the Annual Valuation divided by the number of days in the year, multiplied by 7 and by the number of periods. Daily is the Annual Valuation divided by 365.
A Repeat Charge with Daily Rate selected, and any part-period (pro-rata) posting, always uses the Annual Valuation divided by 365, even when the option is selected.