Applies to:          Stayntouch PMS          

Allowances

TABLE OF CONTENTS

• Allowances: Overview of Functionality
• Allowance Configuration
• Adding Allowances to a Reservation
• Allowance Share Functionality
  • Allowance Multi-Share Functionality
  • Room to Group/Account Routing and Allowance Share
• Group Allowances
  • Attach Billing Groups to a Group
• Allowance Forecast Report
• Reservation Modifications
• Folio and Journal
  • Inclusive Tax Configuration
  • Exclusive Tax Configuration
• Allowance Q&A
  • Allowance Configuration
  • Folios
  • Adding Allowances to a Reservation
  • Reservation Modifications

For further information about allowances, you can also see the overview here.

To activate allowances, please contact Customer Support, who will organize the enablement and have an installer reach out to schedule a session.

ALLOWANCES: OVERVIEW OF FUNCTIONALITY

Add-Ons with Activated Allowance Functionality

Allowances are used to support smooth operations and offer hotels above price value, especially in F&B outlets. Allowances enable hotels to work with two separate fundamentals—add-on price and add-on value. The add-on price is the actual cost of the add-on that will be split to the revenue stream selected within a charge code. The add-on value is the maximum amount that can be consumed by a guest at a hotel’s expense.

Main Use Cases in Hospitality

• A F&B item where there is a difference in price and value
  • Example: A breakfast add-on is priced at $10.00, but the retail value is $15.00. In a F&B outlet, the full value of $15.00 is still entered in the POS. There is no need for manual print-outs to check breakfast inclusive guests, etc. The PMS absorbs the difference between the price and the value.
• An F&B item with an attached credit
  • Example: A guest buys a $50.00 bar credit with a value of $100.00. The PMS will automatically absorb all corresponding charges set up within the allowance add-on for the value of up to $100.00. The guest is to pay $50.00 (in case the add-on is not included in a rate). Anything above $100.00 will be posted as a guest-facing charge utilizing the allowance charge code attached in the allowance add-on.
• Allowance functionality can be used in many other revenue streams such as spa, laundry, or an overall F&B credit.

Terms to Know

1. Allowance Value: The amount the guest is able to consume.
2. Allowance Price: The amount cost/charged.
3. Allowance Loss: The difference between the amount consumed up to the allowance value and price. This is NOT a guest-facing transaction and is only visible from the Journal and the allowances screen on the Guest Bill.
4. Allowance Unused: The difference between the amount consumed when less than the price. This is NOT a guest-facing transaction and is only visible from the Journal and the allowances screen on the Guest Bill.
5. Allowance Load: Negative amount displayed in the allowances screen on the Guest Bill.
6. Overage: The amount greater than the allowance value—charged to the Guest Bill.
7. Charge Codes Allowed for Consumption: The charge codes to be consumed when posted to the Guest Bill with an allowance add-on (the tax rate on a consumable charge code must equal to that of the allowance selected).
8. Occupancy Type: The quantity of the allowance add-on is driven by one of the following—Adult, Child, Flat, Person, or Room.
9. Post Type: The cadence of when the allowance will be loaded is driven by one of the following—Every Week, First Night, Nightly, Post On Last Night.
10. Consume Next Day: This is to be selected when the allowance should be loaded following the End of Day process, not upon check-in. This is common for breakfast packages.
11. Include In Rate: The price of the allowance add-on will be subtracted from the rate in the Journal to reflect accurate room revenue and package breakage. The allowance add-on price will not display on the Guest Bill, but tax will in hotels with exclusive taxes. If there is an overage, the overage will be displayed as an additional line item on the Guest Bill by the charge code that is consumed.
12. Add To Price: The price will be displayed as a line item on the Guest Bill and will be displayed based on the charge code associated with the allowance add-on. If there is an overage, the overage will be displayed as an additional line item on the Guest Bill by the charge code that is consumed.

The screenshots immediately following are each marked with a number corresponding to the numbers above to indicate each of these terms.

All associated allowances are loaded to the Guest Bill based on the post type. If the POST TYPE is Last night or Consume next day, it will not be loaded upon check-in. The charges will be displayed upon clicking the ALLOWANCES button. The initial allowance load will be a negative amount. All consumable charges will be posted against the allowance up to the allowance value. In the event the charge is greater than the allowance value, the allowance value will be consumed, and the overage will be posted on the Guest Bill.

If Last night is not an option, please contact Customer Support to discuss activating custom add-ons.

During the End of Day process, the allowance loss/unused calculation will be performed and then displayed in the internal allowance breakdown section as well as in the Journal.

ALLOWANCE CONFIGURATION

Once the allowance functionality has been enabled by Stayntouch Admin, the charge group Allowance (system defined) will be automatically created from Settings > Financials > Charge Groups. 

The hotel must complete four steps in order for the allowance functionality to work correctly. You’ll need to create the Allowance Loss, Unused Allowance, and Allowance charge codes from Settings > Financials > Charge Codes along with the allowance add-ons. Repeat for all allowances to ensure accurate reporting. Examples of allowances are Breakfast, Food & Beverage, Spa, Parking, etc.

1. Allowance Loss

The Allowance Loss charge code must have a CHARGE CODE TYPE of ALLOWANCE LOSS associated with it. Allowance Loss, Unused Allowance, and Allowance charge codes should have the same tax set up and value.

2. Unused Allowance

The Unused Allowance charge code must have a CHARGE CODE TYPE of UNUSED ALLOWANCE associated with it.

3. Allowance Charge Code

Once the Allowance Loss and Unused Allowance charge codes have been created, the Allowance charge code can be built. When the CHARGE CODE TYPE is set to ALLOWANCE, the user will be able to associate it with the Allowance Loss and Unused Allowance charge codes created in previous steps.

4. Create Allowance Add-On

From Settings > Rates > Add-Ons > + ADD NEW, you’ll need to complete the following steps:

1. Activate the ALLOWANCE toggle.
2. Add the NAME and the DESCRIPTION for the allowance add-on.
3. Select the CHARGE GROUP and the CHARGE CODE.
4. Add the allowance VALUE (the maximum amount allocated for consumption).
5. Add the allowance PRICE (the cost of the allowance add-ons).
6. From ALLOWED FOR CONSUMPTION, select the charge code(s) that will be consumed as part of the allowance. Only the selected charge code will be absorbed by the allowance value. The charge codes must have the same tax set up as the Allowance Loss, Unused Allowance, and Allowance charge codes (hotels must create different allowances for different tax set up).
7. Choose an OCCUPANCY TYPE (Adult, Child, Flat, Person, Room).
8. Choose the POST TYPE (Every Week, First Night, Nightly, Post on Last Night).
9. Indicate whether or not the allowance is to be consumed on the next day by selecting (or leaving unselected) the Consume next day checkbox.

For further information about allowance configuration, see our Q&A responses here.

ADDING ALLOWANCES TO A RESERVATION

Add-ons with allowances can be added to a reservation three different ways: 

1. During the booking process

2. From the stay card

3. Automatically as part of a rate plan

Add-ons attached during the booking process or from the stay card will be added to the price. Allowance add-ons from the rate can be configured to either have the allowance included in the price or added to the price. When the rate is $200.00, and the allowance price is $25.00, if the allowance add-on is set to be included in the price, a $200.00 room charge will be displayed on the Guest Bill. On the Journal, room charge will be $175.00 with an allowance of $25.00. If the allowance add-on is set to be added to the price, a $200.00 room charge and a $25.00 allowance will be displayed on the Guest Bill. On the Journal, room charge will be $200.00 with an allowance of $25.00.

Please contact Customer Support to have the allowance functionality enabled.

For further information about adding allowances to a reservation, see our Q&A responses here.

ALLOWANCE SHARE FUNCTIONALITY

Allowances can be shared across multiple reservations when the reservations have an allowance in common. For example, Guest One and Guest Two are traveling together, and both have a $25.00 F&B credit included in their rate. The allowance is able to be shared between the reservations, and irrespective of which reservation charges food and beverage to the room, a total of $50.00 can be consumed.

The guests can charge to either room, and the system will first consume against the reservation that posted the charge. In the event that the charge is greater than the value on the reservation, the allowance will be consumed in its entirety before attempting to consume against the next reservation. If an overage is charged, the overage will post to the reservation that posted the charge.

Allowance Multi-Share Functionality

Allowances can be shared across multiple reservations. Please note, only reservations with an add-on in common will be displayed. “Breakfast and Dinner Package” can share with both “Breakfast Package” and “Dinner Package,” but “Breakfast Package” and “Dinner Package” cannot be shared with each other. 

Breakfast Package: 408

Breakfast and Dinner Package: 501

Dinner Package: 401

Share One: 102

Share Two: 106

Share Three: 202

Share Four: 206

Share Two is sharing with both Share One and Share Four

Share Four is sharing with Share Three, and because sharing is bi-directional, it’s sharing with Share Two, as well.

Share One only shares with Share Two.

When charging $70.00 to Share One, Share One is consumed completely, Share Two is consumed completely, and the overage is posted to Share One.

Now, when posting $35.00 to Share Two (allowance is already consumed), the PMS consumes the shared allowance on Share Four and posts the overage to Share Two.

In this scenario, Share Three is still unconsumed.

Room to Group/Account Routing and Allowance Share

With allowances, you can complete group/house account routing between the reservations that belong to that group. When performing group/house allowance sharing from a group/house account, reservations that belong to that specific group/house account should automatically show on the right side (includes due-in, reserved, and checked-in reservations). You can then choose one or more reservations to share and save. When sharing reservations from Groups > Manage Groups > Select Group > Transactions > ALLOWANCES > SHARING, per allowance functionality, there must be a minimum of two reservations that can be shared. Solitary reservations cannot be shared. You can also search reservations by name and/or room number from the search bar in Groups > Manage Groups > Select Group > Transactions > ALLOWANCES > SHARING.

GROUP ALLOWANCES

For the group allowances, the functionality is slightly different. From Groups > Manage Groups > Select Group > Transactions > ALLOWANCES, you can see all reservations and their respective shared allowances. You can also see if reservations have consumed an allowance and if an allowance is shared.

Please note the following:

• If no group reservations are selected to share an allowance, then there will be no allowances in Groups > Manage Groups > Select Group > Transactions > ALLOWANCES.
• If there are group reservations selected to share an allowance, then only those selected will appear in Groups > Manage Groups > Select Group > Transactions > ALLOWANCES.
• Each reservation will show per day as per the posting type of the allowance and the duration of the group. If the reservation has two shared allowances, then they will show as individual line items.

Attach Billing Groups to a Group

For allowances, Stayntouch PMS supports the ability to add all billing groups to group routing. This feature also allows users to view all billing groups from group routing. All applicable charges will be routed based on the billing group.

As a best practice, groups should not route charges that are consumable by an allowance, where applicable.

ALLOWANCE FORECAST REPORT

We have an Allowance Forecast Report, which shows an allowance forecast based on the date range selected.

Report Filters:

• DATE RANGE: Select a date range. Can be run for the current business date +1 and forward.
• ALLOWANCE CODE: Select from individual allowance codes or choose SELECT ALL; all selected by default.
• SORT BY: Select from Allowance or Date.
• GROUP BY: Select from Allowance Code or Date.

The Allowance Forecast Report can be exported by CSV or printed by PDF, and it will appear in the Reports Inbox as pictured below. You will see the following fields on the report:

• ARRIVAL
• DEPARTURE
• ROOM TYPE
• ROOM
• RATE CODE
• ALLOWANCE
• GUEST (GUEST NAME, ADULTS, CHILDREN)

At the bottom of the report, you’ll see totals per day per package based on the date range selected on the filters. Reservations statuses include Reserved, Due-In, Due-Out, and Checked-In.

You can schedule the Allowance Forecast Report from Reports > Schedule a Report/Export > Scheduled Reports > + NEW REPORT SCHEDULE > Allowance Forecast Report. Once scheduled, the report can be exported by CSV.

RESERVATION MODIFICATIONS

Nightly reservations with allowance add-ons can now be extended or shortened, and this will be reflected on the Guest Bill. This works regardless of allowance type (Nightly, Consume Next Day, First Night, Last Night, etc.), and if the allowance is included in/excluded from price.

For further information about reservation modifications, see our Q&A responses here.

FOLIO AND JOURNAL

Inclusive Tax Configuration

Allowance loss is posted for any amount that is more than the allowance price but less than allowance value. Allowance loss is posted as a negative amount.

a.

Allowance Price = $20.00

Allowance Value = $25.00

Consumed = $25.00

Allowance Loss = -$5.00 ($20.00 - $25.00)

b.

Allowance Price = $20.00

Allowance Value = $25.00

Consumed = $20.00

Allowance Loss = Nil ($20.00 - $20.00 = $0.00)

Within Financials > Journal, you will also notice that a counter posting to the allowance load has been added. Allowance load is only a holding charge code that will ensure that all consumable charge codes are calculated correctly. The charge code in itself should always be at $0.00 value at the end of the day. The counter posting is not seen on the allowance button intentionally.

Unused allowance is posted for any amount that is less than the allowance price. Unused allowance is posted as a positive value.

a.

Allowance Price = $20.00

Allowance Value = $25.00

Consumed = $10.00

Unused Allowance = $10.00 ($20.00 - $10.00)

b.

Allowance Price = $20.00

Allowance Value = $25.00

Consumed = $0.00

Unused Allowance = $20.00 ($20.00 - $0.00)

Allowance overage is posted in the event a guest consumed more than the allowance value. The remaining amount will be posted to the guest’s bill.

a.

Allowance Price = $20.00

Allowance Value = $25.00

Consumed = $35.00

Allowance Overage = $10.00 ($35.00 - $25.00)

A value of $25.00 is absorbed by the allowance, and the overage value of $10.00 is posted against the Guest Bill using the respective consumable charge code.

The Guest Bill will show the below allowance overage.

You can view the overage description on the Allowances window (if an overage has occurred). If overage details are passed over from a POS, they will only display on the Allowances window, not on the Guest Bill.

Furthermore, if a check number is passed from a POS, it is displayed on the Guest Bill.

Exclusive Tax Configuration

Allowance loss is posted for any amount that is more than the allowance price but less than allowance value. Allowance loss is posted as a negative amount.

a.

Allowance Price = $20.00

Allowance Price Tax = $1.00

Allowance Value = $25.00

Allowance Value Tax = $1.25

Consumed = $25.00

Consumed Tax = $1.25

Allowance Loss = -$5.00 ($20.00 - $25.00 = -$5.00)

Allowance Loss Tax = $-0.25 ($1.00 - $1.25 = -$0.25)

b.

Allowance Price = $20.00

Allowance Price Tax = $1.00

Allowance Value = $25.00

Allowance Value Tax = $1.25

Consumed = $20.00

Consumed Tax = $1.00

Allowance Loss = Nil ($20.00 - $20.00 = $0.00)

Allowance Loss Tax = Nil ($1.00 - $1.00 = $0.00)

Within Financials > Journal, you will also notice that a counter posting to the allowance load has been added. Allowance load is only a holding charge code that will ensure that all consumable charge codes are calculated correctly. The charge code in itself should always be at $0.00 value at the end of the day. The counter posting is not seen on the allowance button intentionally.

Unused allowance is posted for any amount that is less than the allowance price. Unused allowance is posted as a positive value.

a.

Allowance Price = $20.00

Allowance Price Tax = $1.00

Allowance Value = $25.00

Allowance Value Tax = $1.25

Consumed = $10.00

Consumed Tax = $0.50

Unused Allowance = $10.00 ($20.00 - $10.00)

Unused Allowance Tax = $0.50 ($1.00-$0.50)

b.

Allowance Price = $20.00

Allowance Price Tax = $1.00

Allowance Value = $25.00

Allowance Value Tax = $1.25

Consumed = $0.00

Consumed Tax = $0.00

Unused Allowance = $20.00 ($20.00 - $0.00)

Unused Allowance Tax = $1.00 ($1.00 - $0.00 = $1.00)

Allowance overage is posted in the event a guest consumed more than the allowance value. The remaining amount will be posted to the guest’s bill.

a.

Allowance Price = $20.00

Allowance Price Tax = $1.00

Allowance Value = $25.00

Allowance Value Tax = $1.25

Consumed = $35.00

Consumed Tax = $1.75

Allowance Overage = $10.00 ($35.00 - $25.00)

Allowance Overage Tax = $0.50 ($1.75 - $1.25)

A value of $25.00 is absorbed by the allowance, and the overage value of $10.00 is posted against the Guest Bill using the respective consumable charge code.

The Guest Bill will show the below allowance overage.

You can view the overage description on the Allowances window (if an overage has occurred). If overage details are passed over from a POS, they will only display on the Allowances window, not on the Guest Bill.

Furthermore, if a check number is passed from a POS, it is displayed on the Guest Bill.

ALLOWANCE Q&A

Allowance Configuration

Q: Why am I receiving the error message, “Unable to update add-on due to active reservation(s). Remove add-on from associated reservation(s) to update add-on.”?

A: When activating or deactivating the allowance functionality for an add-on, it cannot be associated with any active reservations to ensure accuracy of transactions. Run the Add-On Forecast Report and remove the add-on from applicable reservations, then update the add-on as desired.

Q: Why am I unable to view all charge codes in the list of consumable charge codes on my allowance add-on?

A: Only charge codes with the same tax configuration as the allowance add-on charge code can be added.

Tax Setup for Allowance Tax 1 Charge Code

Tax Setup for Loss Tax 1 Charge Code

Tax Setup for Unused Tax 1 Charge Code

Q: Why are only charge codes with the same tax configuration able to be consumed by an allowance add-on?

A: This is to ensure that the hotel's finances stay in balance.

Q: How do I add a consumable charge code with a different tax configuration to an allowance add-on?

A: Another set of allowances (Allowance, Loss, and Unused) will need to be created with the tax configuration of the consumable charge code.

Q: How can we offer the guest a daily credit without a corresponding charge?

A: An allowance add-on can be created with a price of 0 and the desired value of the credit to give the guest. Keep in mind the tax configuration for the consumable charge codes must be the same as the add-on charge code.

Folios

Q: I have a rate with an Include in price allowance—why is there an additional tax showing on my guest's folio?

A: To ensure accurate and standard industry accounting principles are followed, when an inclusive allowance has a tax, it must be calculated and posted to ensure tax will be remitted to the appropriate government agencies.  

Q: My guests keep disputing the allowance tax—is there any recommendation to explain the charge to my guest?

A: The first recommendation is to create tax charge codes with a description of "Package Tax" for the tax amount of the Include in price packages where tax is exclusive instead of using the standard tax (e.g., "F&B Tax"). We also recommend adding a note to the package/rate description that informs the guest ahead of time that the package rate is not inclusive of applicable taxes. If there are continued disputes, the second recommendation would be to break down how this is a saving to the guest.

Example 1: $100 Room Rate with 10% Tax

Example 2: $100 Room Rate with 10% Room Tax and $30 Inclusive Allowance with 5% F&B Tax

Adding Allowances to a Reservation

Q: Why can’t I see all allowance add-ons available for my Day Use reservation?

A: Last night and Consume next day add-ons are not visible, as End of Day is required to load the allowance to the reservation, and Day Use reservations depart prior to End of Day being run.

Q: We want to create an inclusive parking package but use an add-on to post parking nightly. Will allowances work in our case?

A: Yes! As long as the parking add-on charge code is set as consumable by the parking allowance, during the End of Day process, the parking add-on will post to the Guest Bill and be consumed by the allowance—prior to any allowance loss/unused being posted to the allowance tab.

Pre-EOD

Post-EOD

Reservation Modifications

Q: What happens when I extend a reservation with a Nightly allowance that was scheduled to depart today?

A: The allowance will be loaded immediately. The Allowance Forecast Report is updated to reflect the changes.

Q: What happens when I shorten a reservation with a Nightly allowance to depart today?

A: If the reservation is shortened to depart today, and the Nightly allowance is not set to Consume next day, the allowance will be removed from the allowance tab, and any consumed charges will post to the Guest Bill. The Allowance Forecast Report is updated to reflect the changes.

Q: What happens when I extend a reservation with a Nightly allowance set to Consume next day?

A: There is no change to the allowance tab, and additional allowances will be loaded through End of Day processes. The Allowance Forecast Report is updated to reflect the changes.

Q: What happens when I shorten a reservation with a Nightly allowance set to Consume next day to depart today?

A: There is no change to the allowance tab. The Allowance Forecast Report is updated to reflect the changes.

Q: What happens when I extend a Day Use reservation with a Nightly allowance?

A: The room and tax and the allowance are already on the reservation. Room and tax will not be posted again during the End of Day process. The Allowance Forecast Report is updated to reflect the changes.

Q: What happens when I shorten a reservation with a Nightly allowance to a Day Use reservation?

A: Room, tax, and applicable charges will automatically post to the Guest Bill, and the allowance load will remain on the allowance tab. The Allowance Forecast Report is updated to reflect the changes. Please note, applicable charges on the Guest Bill will NOT be automatically consumed by the allowance. Hotels should either void the charges and repost to ensure they are consumed, or manually adjust as seen fit.

Q: What happens when I extend a reservation with a Last night allowance that was scheduled to depart today?

A: The allowance will be removed from the allowance tab, and any consumed charges will post to the Guest Bill. The allowance will be loaded on the departure date following the End of Day process. The Allowance Forecast Report is updated to reflect the changes.

Q: What happens when I shorten a reservation with a Last night allowance to depart today?

A: If the reservation is shortened to depart today, the Last night allowance is automatically loaded to the allowance tab. The Allowance Forecast Report is updated to reflect the changes. Please note, applicable charges on the guest bill will NOT be automatically consumed by the allowance. Hotels should either void the charges and repost to ensure they are consumed, or manually adjust as seen fit.

Q: Why can’t I reverse the check-in of a reservation with an allowance load?

A: Once the allowance is loaded on a reservation, the system will not allow the user to reverse the check-in, as there are charges posted. The user can cancel the reservation, and the allowance load will be set to inactive. Once the reservation is cancelled, the user can reinstate the reservation if the guest is still scheduled to arrive.