Remove auto routing of allowance tax for certain rate codes
J
Julia Josephson
started a topic
4 months ago
Requested by PUBLIC
In many states in the US, Expedia and other certain third parties remit taxes to the government on the hotel's behalf for room charges. Therefore, the hotel configures those rate codes to post a charge code that does not generate tax.
When those third parties have negotiated package inclusions that are handled via allowances, and those allowances consume charges that are taxable, package tax is posted to the guest bill per current Allowance intended functionality. And, it is automatically getting routed to Bill #2 where the room charge is routed for VCC payment. However, the VCC is not valid for this tax and the guest is not really responsbile for it either because the third party remitted tax to the government on the entire rate amount, not the reduced rate amount that accounting sees on the journal. The hotel then has to either adjust this or move it to Bill #1 to collect it from the guest, but the guest really isn't responsible for it either.
Example:
Expedia tax remitted room rate: $300 Allowance price: $30 Allowance is configured for 10% sales tax
Guest #1 bill postings: incidentals only Guest #2 bill postings: Expedia tax remitted room rate - $300 Sales tax - $3 Expedia VCC payment is posted for $300. Balance of $3 remains and needs to be adjusted.
By creating functionality that would waive the tax posting on the allowance price by rate code, this could be avoided.
Requested by PUBLIC
In many states in the US, Expedia and other certain third parties remit taxes to the government on the hotel's behalf for room charges. Therefore, the hotel configures those rate codes to post a charge code that does not generate tax.
When those third parties have negotiated package inclusions that are handled via allowances, and those allowances consume charges that are taxable, package tax is posted to the guest bill per current Allowance intended functionality. And, it is automatically getting routed to Bill #2 where the room charge is routed for VCC payment. However, the VCC is not valid for this tax and the guest is not really responsbile for it either because the third party remitted tax to the government on the entire rate amount, not the reduced rate amount that accounting sees on the journal. The hotel then has to either adjust this or move it to Bill #1 to collect it from the guest, but the guest really isn't responsible for it either.
Example:
Expedia tax remitted room rate: $300
Allowance price: $30
Allowance is configured for 10% sales tax
Amount available for payment on VCC: $300
Journal postings:
Expedia tax remitted room rate - $270
Unused Allowance - $30
Sales Tax - $3
Guest #1 bill postings: incidentals only
Guest #2 bill postings:
Expedia tax remitted room rate - $300
Sales tax - $3
Expedia VCC payment is posted for $300. Balance of $3 remains and needs to be adjusted.
By creating functionality that would waive the tax posting on the allowance price by rate code, this could be avoided.