Overview of General Ledger Account Codes and hierarchy in RMS.

Overview

A General Ledger Account Code (GL Acc Code) is the unique code or number assigned to each account in the financial system's chart of accounts and is used to organise financial transactions within the general ledger.

The GL Acc Codes setup in RMS must match the financial system used and will determine where revenue is reported in RMS for any transaction created, including Financial & Operational Revenue.

The hierarchy determines revenue reporting of transactions created on an account to determine which GL Acc Code applies.

Hierarchy

The following hierarchy is used in the sections below.

Category, Area and Rate Type

Revenue for an area will use the GL Acc Code selected on the category unless a different one was selected on the area setup.

Transactions for a rate on a reservation account will allocate revenue to the GL Acc Code on the category unless a separate GL Acc Code was setup on the area or rate.

When a GL Acc Code has been setup on the Category, Area, and Rate, the following rules will be used to determine the allocation of revenue for rates created on the reservation account.

GL Acc Code Update on Area Allocation

When a reservation is allocated to an Area, RMS will automatically update the GL Acc Code on existing rate transactions if the area GL Acc Code differs from the category GL Acc Code.

This applies to reservations using Book by Category, where no area is assigned at the time the rate is created and the category GL Acc Code is used as the default.

When the reservation is later allocated to an area, the following rules apply:

• Area has a different GL Acc Code to the category - existing rate transactions are voided and recreated using the area GL Acc Code.
• Area has no GL Acc Code - existing rate transactions are voided and recreated using the category GL Acc Code.
• Area GL Acc Code matches the category GL Acc Code - no change is made to existing transactions.

The same rules apply in reverse when a reservation is moved from one area to another, or when an area allocation is removed.

Sundry Charge, Exclusive Tax and Late Fee

Transactions for a Sundry, exclusive tax or late fee will use the GL Acc Code assigned on the setup of the item including sundries selected for use on a Requirement, Tour, Repeat Charge or Periodic Charge.

If the GL Acc Code has been setup as accommodation revenue and is allocated to a Sundry, Exclusive Tax or Late Fee the related transactions will be included in accommodation revenue on operational revenue reports.

Discounts

Discounts can be setup to deduct revenue from the GL Acc Code of the target transaction (targeted) or allocated to a specific GL Acc Code (default).

Targeted discounts will subtract the revenue reported for the GL Acc Code assigned to the charge transaction the discount is applied to. 

When the targeted transaction is a rate, the discount will deduct revenue from the same GL Acc Code that the rate revenue will be allocated to using the rules below.

Operational Revenue

Operational Revenue reports the accommodation value of a reservation distributed across the reservation dates. The transactions to be included as accommodation revenue are determined by the GL Acc Code setup.

GL Acc Codes setup to be included in accommodation revenue will always be included on operational revenue reports as accommodation revenue.

Operational reports, including the History & Forecast Report & Operational Revenue Report breakdown, reported revenue as accommodation, food & beverage, or other.

Transactions will be included on these reports as food & beverage revenue when the GL Acc Code has been setup with a Food & Beverage Grouping.

General ledger account codes setup as accommodation revenue and assigned a food & beverage grouping will only be reported as accommodation revenue.

Any GL Acc Code that is not setup as accommodation revenue and is not assigned to a food & beverage grouping will contribute to the 'other' revenue section on these operational revenue reports.