Process Taxes to Owner Account

When it comes to taxes, there are a few options regarding whether the Property Manager remits the tax on behalf of the owner, or if the tax is credited to the owner to remit themselves.

The Property Manager can specify to send the net rental income (excluding tax) or the gross rental income (including tax) to the Owner's Account.

Tax Setting

Before sending taxes to the Owner's Account, it is important to ensure that the correct tax setting has been configured.

To do so, go to:

  1. Global Settings > Settings Assistant
  2. Navigate to the "General Reservation Settings" from the drop-down menu

Tax Setting  -  When disbursing rental income to the owners statement, send either the net or the gross amount. The net amount is the rental income  excluding tax. To send the net amount, enable this setting. To send rental income including taxes, disable this setting. Typically, there are three scenarios that apply for this setting:

  1. The property manager is remitting taxes on behalf of the owner and DOES NOT want to itemize the tax on the owner statements. Therefore, sends the net rental income and should check this setting.
  2. The property manager is remitting taxes on behalf of the owner, and DOES want to itemize the tax on the owner statements. Therefore, sends the gross rental income and debits the tax as a separate line-item and should uncheck this setting to send the gross.
  3. The owner is remitting the tax, therefore, the gross rental income is sent and should uncheck this setting to send the gross.

Please note, once this setting has been enabled or disabled, it is not recommended to go back and change the setting, as it can change the financials that have already been disbursed to the owner.

For scenario two, follow the steps in the rest of this User Manual to itemize the taxes on the Owner's Account.

For scenario three, when the rental income is disbursed to the owner, it will include the taxes as a credit to the owner, so no further action is needed.

Processing Taxes to Owner Accounts

To process taxes to the Owner Accounts, go to:

  1. Accounting > End of Month Process
  2. Process Taxes

The "Overview" screen displays a table of the taxes collected for the specified date period:

The table displays the property name, arrival and departure dates, number of nights, the guest name, the booking category, the base rental amount, the tax amounts, and the grand total.

It is important to ensure that the totals are correct in order for the tax reports to be accurate. If a discrepancy is spotted, go to the Total Booking Summary to correct the amounts in the booking before generating the tax report.

Please follow these steps to process and itemize the taxes on the Owner's Account:

  1. Specify the applicable date range from the date filter - previous month, current month, or last three months
  2. Click on the "Owner Account Processing" tab
  3. Verify that the tax amounts are correct, and then select either "Add Selected to Account" or "Add ALL to Account." (Taxes can be sent to the owner account one at a time or all items can be sent to the owner accounts)

After processing, the taxes will appear as a debit line item on the owner's account to itemize the tax that the Property Manager has remitted on the owners behalf.

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