Not all bookings will be fully paid by the time the period the booking checks out in is closed.

The trust system requires that money must exist in the system before it can be credited to the owner.

This means that all bookings must be fully paid and the payments transferred to trust before they can be transferred to trust.

The way bookings that have not been paid are managed will depend if the manager will pay the owner for these bookings prior to receiving payment themselves.

Case 1: Manager will not pay the booking revenue to the owner prior to receiving payment:

In this case bookings are not transferred to trust in the check out month if payment is not received. For bookings that are not transferred, on their report for the month, the owner will see:

Settlement pending, income and expenses will appear in a future statement.

Once the booking is transferred to a later month the owner will see a message :

Booking settled after the period was closed, income and expenses appear in your April 2019 statement.

And the account entries will appear in the month the booking is transferred to (in the example above April 2019).

Case 2: Manger will pay the booking revenue to the owner prior to receiving payment:

In the case bookings are transferred to trust in the check out month, before the payment has been received. The Manager must provide the money to the system in order to pay it to the owner.

There are various workflows that can be used to achieve this, one method is to use the Accounts Receivable payment method:

  1. Payments for these bookings are marked as paid using the Accounts Receivable payment method.
  2. When these payments are transferred to trust a Manager Accounts Receivable account is debited for the payment amount.
  3. Booking is transferred to trust as normal with account entries appearing to the owner in the month the booking checks out.
  4. When payments are received this is reconciled by crediting to the Accounts Receivable account.

System can also be set up to use multiple Accounts Receivable accounts so you could manage money owed across for example Expedia Collect AR, Agoda AR…..

How to Reconcile Accounts Receivable Payments

There are many workflows that could be used to achieve this. An example of how this could be done using the Expedia Accounts Receivable payment method is below.

For an example Expedia Collect booking in May for 10,000 Yen that we would like to transfer to trust before the payment has been received:

  1. Add a full payment to the booking using the Expedia Accounts Receivable payment method.
  2. Transfer this payment to trust (this will create a 10,000 debit on the Expedia Accounts Receivable account).
  3. Process trust for this booking as normal and close the May trust period.
  4. If we check the Omni Report (Trust >> Omni Report) at this time we will see that there is -10,000 JPY on the Expedia Accounts Receivable account.
  5. If we run the Payments Report (Reports >> Payments Report) for May using the Expedia Accounts Receivable filter we will see the 10,000 JPY payment (would give us a list of all payments in may for this method).
  6. When we receive our payment from Expedia we can reconcile this against the payments report.
  7. Optionally: if we want to maintain a running total of money owed to us by Expedia we can also add Journal Entries like the below to represent the payment from Expedia:
  8. The above represents a Bank transfer from Expedia to cover the booking amount minus 1,500 in Expedia commission.
  9. If we check the Omni Report (Trust >> Omni Report) at this time we will see that there is now a zero balance on the Expedia Accounts Receivable account.

Please ask us about the best way to model your workflow for this case.