Automatic revenue distribution
Introduction
What is Automatic revenue distribution?
The Journal Engine has been developed to generate revenue distribution entries. The Automatic revenue distribution, facilitated by Journal Engine, streamlines revenue allocation while ensuring compliance with French (NF525) and Spanish (SII) regulations. A key feature of this method is how VAT is distributed. Payments for reservations that have not yet been checked out undergo a provisional VAT calculation, which is later reconciled with the actual amount. VAT entries are systematically divided within the automatic revenue distribution process, enhancing transparency and accuracy in financial reporting.
Conceptual flow
The automatic revenue distribution process consists of four main conceptual steps:
Initial setup
Processing payment and down payment invoice verification for provisional reservation.
Validating the journal entry corresponding to the down payment invoice in Automatic revenue distribution.
Initial setup
Prerequisites
The feature flag Enable automatic revenue distribution feature must be enabled.
The Admin organisation with the relevant legislation enabled (either FRANCE-NF525 or SPAIN-SII) must be available. Additionally, it should not have a deferred ledger or a deferred journal already added.
The reservation corresponding to the configured Admin organisation should be available. Also, the reservation status should be provisional and its arrival date should be before the present date.
Access
Processing the payment for a reservation and verification of the invoices can be done in the Reservation Manager.
The Automatic revenue distribution entries can be validated in the Finance Manager.
Configuration
Create a ledger
To create a ledger, follow these steps in the Finance Manager:
From the Configuration menu, select Ledgers.
Click on Create ledger. In the Create ledger widget, enter the details and select a relevant VAT.
Select valid details in the next steps and on the last step click Create ledger.
The newly created ledger is displayed in the list of ledgers.
Update Admin Organisation
To update an Admin organisation (AO), follow these steps in the Finance Manager:
From the Configuration menu, select Admin organisation.
Select the relevant AO. Click on the three dots at the top right corner to edit the AO.
On the Update admin organisation screen, select the Deferred ledger and Deferred journal from the drop-down.
Note: The Deferred ledger selected here is the one created previously.
Click on the Update admin organisation button.
Verifying the Automatic revenue distribution process
Verify the down payment invoice.
Navigate to the Reservation Manager.
Search for the reservation for the configured Admin organisation.
As the status of the reservation is Provisional, there are no invoices in the Invoices customer section of the Finance tab.
On the Overview tab, click on the Pay bill option and make a payment.
The status of the reservation changes to Definitive.
Navigate to the Finance tab. In the Invoices customer section, a down payment invoice is present.
Verify the Automatic revenue distribution entry
Navigate to the Finance Manager.
In the Revenue distribution menu select the option Automatic. This page contains all the revenue distribution entries with respective Revenue distribution number.
Select the relevant entry as per the AO. In the Task details screen, verify the entry for the deferred ledger and the corresponding entries with the same invoice number as in the reservation. Also, verify the amounts for each entry.
Open the Reservation Manager and verify the PDF file of the down payment invoice. The values in the file match the automatic revenue distribution entry in the Finance Manager.
Once the reservation is checked out, the final invoice is generated with a different invoice number. In the automatic revenue distribution, new entries are added with the same invoice number as the final invoice of the reservation.
As invoices are generated, journal entries are automatically added to the revenue distribution (RD). Each RD has a designated date and closes at the end of that day. When a new invoice is created, the system determines whether a new RD is needed for the new day. This ensures that one revenue distribution is automatically created per day, per AO, without any user input.
Credit invoice
When a checked-out reservation is checked in again, a credit invoice is generated with a reference to the original invoice number.
Journal entries corresponding to the credit invoice generated are also displayed in the revenue distribution and are the counter entries of the original invoice.
Upon making any further payment and checking out, an invoice will be generated and a corresponding entry in the revenue distribution is displayed.
Events for invoice generation
Various events trigger the generation of invoices for NF525 and SII. Refer to the below spreadsheet for such events and the corresponding invoices that are generated.
Conclusion
Automatic revenue distribution streamlines revenue allocation and VAT handling while ensuring compliance with French (NF525) and Spanish (SII) regulations. By automatically processing invoices and journal entries per day for each Admin organisation, it minimizes manual effort and enhances accuracy. This structured approach improves financial transparency and simplifies reconciliation.