Configuring lease settings

You use the Leasing Configuration page to configure lease settings and define the transaction codes that will be used.

Any lease fees (Hire, Maintenance, and Service) can be set to bill separately which require the fee billing transaction code to be defined. The fee billing transaction code is the reported guest charge transaction code that will go to the guest stay's A/R folio, the fee transaction code is used as revenue recognition in Folio 6. If a fee billing transaction code is not defined, the rental transaction code is used. You can set a prefix with a maximum length of 3 alphanumeric characters for each type of invoice so that when invoices are generated they are easily distinguishable. If Security Deposit or Incidental Deposit are defined, then the forfeit transaction code for that type of deposit is required. The optional valuation order fields are numerical 1-9 and must be unique per each fee type, this determines the order of which fees are considered for taxation when annual valuation of rooms is used. Valuation order cannot be combined with the Tax Condition Base Valuation Limit (Valuation Amount capped by Room Fee Amount).

To configure leasing settings:

  1. Select Administration > Property > Lease Configuration.
  2. In the Lease Configuration tab, specify the information that you require. See additional information about these fields:
    Allow Shoulder Stay Dates
    Select the check box to indicate guest stays associated to leases may include shoulder stay dates. If this check box is unchecked, the lease guest cannot stay outside lease dates. The shoulder stay dates will be charged according to the rate plan specified in the Shoulder Rate Plan field. Shoulder stay dates will not be included in the lease schedule and will be charged to the guest. After you select the check box, the Lease Managed Shoulder Periods check box is not available.
    Lease Managed Shoulder Periods
    Select the check box to indicate that if shoulder stay dates exist, the shoulder periods will be managed in the lease. The shoulder stay dates will be charged the leasing rate's calculated daily rate. You can limit the allowable guest's shoulder stay dates using the Shoulder Start Date, Shoulder End Date, Shoulder Days Before, and Shoulder Days After fields on the lease record.
    Rental Transaction
    Transaction Code used for the guest charge and may include lease fees. The transaction code defined here will copy to the Lease Charge field of the Leasing Rate page when creating new leasing rates.
    Note: 
    • Revenue Type must be set to None.
    • An offset transaction code is Required.
    • Do not specify Tax Groups
    Room
    Transaction code used for the daily room revenue charge in the accounting folio. The transaction code defined here will copy to the Lease Charge field of the Leasing Rate page when creating new leasing rates.
    Note: 
    • Specify tax groups
    • Revenue Type is set to Room
    Vacant Room Transaction
    Transaction Code used to post any vacant room charges. Vacant room charges are charges that are incurred for days the lease includes, but no guest is checked in to the leased room. The transaction code defined here will copy to the Vacant Room Charge field of the Leasing Rate page when creating new leasing rates.
    Note: 
    • Revenue Type is typically set to Room.
    • Specify Tax Groups
    • This code is optional. If you do not specify this code, the Room transaction code is used.
  3. If the Property uses lease fees, specify the fee transaction codes. The fee types are hire, maintenance and service. See additional information about these fields:
    Hire Transaction
    Used for the revenue recognition charges. Specify the Revenue Type and the Tax Group.
    Hire Billing Transaction
    Used for the guest charge when billed separately. Revenue Type must be None. An offset transaction code is not required. Also, do not specify Tax Group .
    Maintenance Transaction
    Used for the revenue recognition charges. Specify the Revenue Type and the Tax Group.
    Maintenance Billing Transaction
    Used for the guest charge when billed separately. Revenue Type must be None. An offset transaction code is not required. Also, do not specify Tax Group .
    Service Transaction
    Used for the revenue recognition charges. Specify the Revenue Type and the Tax Group.
    Service Billing Transaction
    Used for the guest charge when billed separately. Revenue Type must be None. An offset transaction code is not required. Also, do not specify Tax Group .
    Hire Fee Valuation Order
    Specify the value that is used for tax valuation. Precedence order is applied by the system for tax valuation.
    Hire Fee Bill Separately
    If this check box is selected, by default this type of fee is billed separately from the rental charge.
    Maintenance Fee Bill Separately
    If this check box is selected, by default this type of fee is billed separately from the rental charge.
    Service Fee Bill Separately
    If this check box is selected, by default this type of fee is billed separately from the rental charge.
  4. Specify a transaction code for each type of deposit used by the property.
    Rent Deposit
    Specify the transaction code that is used to post the rental deposit. This transaction code is configured with a Pay Type of Advance Deposit.
    Security Deposit
    Specify the transaction code that is used to post the security deposit. This transaction code is configured with a Pay Type of Advance Deposit.
    Security Deposit Forfeit
    Specify the transaction code that is used to post the security deposit that is forfeited. This transaction code is configured with a Revenue Type.
    Incidentals Deposit
    Specify the transaction code that is used to post the incidentals deposit. This transaction code is configured with a Pay Type of Advance Deposit.
    Incidentals Deposit Forfeit
    Specify the transaction code that is used to post the incidentals deposit that is forfeited. This transaction code is configured with a Revenue Type.
  5. Click Save Record.