Overview: Revenue classifications
A revenue classification specifies where the revenue from menus, items, function room rental, and other income items should be allocated. Revenue classifications are a key component because they impact taxes, admin and gratuity, BEOs, banquet checks, booking checks, and reports.
There are two types of revenue classifications: corporate and property. A corporate revenue classification is shared across all properties in your org. A property revenue classification is available only at the property where it was created and is primarily used to address unique tax needs.
The following corporate revenue classifications are included by default: Food, Beverage, Resource, Audio Visual, Function Room Rental, Administrative Charge, and Other. You'll use these standard corporate revenue classifications most of the time; however, you may also need to use property-specific revenue classifications in the following situations:
- Your property sells sub-categories of items that require unique tax rules. For example, beer and wine are subject to your standard 9.25% state sales tax; however, spirits are also subject to a 15% liquor tax. To account for the additional tax applied to spirits, you can create a Liquor revenue classification for the property and then assign it both the 9.25% state sales tax and the 15% liquor tax. This ensures that beer, wine, and spirits are all taxed correctly on your banquet checks.
- Prior to R23, you may have created property-specific revenue classifications and added child revenue classifications to accommodate the different taxes, admin, and gratuity at each property. If you'd like, you can continue to work in this way rather than enabling the property-specific admin and gratuity feature in R23.
You must be a Corporate or Property Administrator to manage the revenue classifications for a property. Before you get started, take a look at the following information to see how revenue classifications are used in different areas.
Taxes
Revenue classifications enable you to use tax groups to quickly deploy and update your property taxes. A tax group is a collection of taxes that can be applied as a single set of rules. Each event is assigned a tax group. Some of the taxes in that tax group might only pertain to certain types of revenue (for example, an audio visual tax of 5.0%). How does the system know which ones to apply? When you add a tax to a tax group, you associate the tax with one or more revenue classifications. Since menus, items, function room rental, and other income items are also associated with revenue classifications, which tax should be applied is determined based on matching revenue classifications. In the case of the audio visual tax, only items with a revenue classification of Audio Visual will be subject to that 5.0% tax. All you need to do is run the banquet or booking check—we do all the rest.
Admin and gratuity
Property-specific admin and gratuity can be defined for each corporate revenue classification. For example, if The City Hotel charges 20% gratuity for Food and Amadeus Plaza charges 18%, you can enter those percentages directly on the Food corporate revenue classification. When users add a food item to an event, the appropriate admin and gratuity are applied based on the property. If a property’s admin and gratuity haven’t been defined, the default admin and gratuity entered on the corporate revenue classification is used. See Enter property admin and gratuity.
Property-specific admin and gratuity is a feature of R23. If your property was set up before R23, you may want to continue using property-specific revenue classifications to account for differing taxes, admin, and gratuity across properties.
BEOs, banquet checks, and booking checks
Each section of a BEO, banquet check, or booking check template is mapped to one or more revenue classifications. The revenue classification assigned to the menu, item, function room rental, or other income item is used to determine where it should be placed on the document.
Reporting
Revenue classifications allow reports to be divided into revenue categories and determine the specific category used for reported revenue. They are also used to define property budgets and Sales Manager goals.
Packages
Similar to menus, package events are assigned a revenue breakdown. Each allocation you specify within that breakdown is associated with a revenue classification. For example, a dinner on your Complete Meeting Package might have a revenue breakdown of 25.00 to Food and 10.00 to Beverage. The event's revenue breakdown is used (rather than the menu and item pricing information) to calculate the package revenue and taxes.
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Video: All about taxes (includes revenue classifications)
Create revenue classifications
View revenue classification details
Delete revenue classifications