Overview: Revenue classifications

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A revenue classification specifies where the revenue from menus, items, other income items, and function room rental needs to be allocated. Revenue classifications impact taxes, admin and gratuity charges, BEOs, banquet checks, booking checks, and reports.

Two types of revenue classifications exist, corporate and property. A corporate revenue classification is shared across all properties in your org. A property revenue classification is available only at the designated property. Property revenue classifications can be 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. While you can use corporate revenue classifications most of the time, you might need to use property-specific revenue classifications for unique tax needs.

For example, your property sells sub-categories of items that require unique tax rules. Beer and wine are subject to your standard 9.25% state sales tax, but 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 taxes are correct on your banquet checks.

You need to be a corporate or property administrator to manage the revenue classifications for a property. Before you get started, consider the following.

Taxes

Use revenue classifications with tax groups to deploy and update your property taxes. A tax group is a collection of taxes that applies as a single set of rules. Each event is assigned a tax group. Some taxes in that tax group might only pertain to certain types of revenue, for example, an audio visual tax of 5.0%. When you add a tax to a tax group, you associate the tax with one or more revenue classifications. Since menus, items, and function room rental are also associated with revenue classifications, the tax that applies is controlled by the matching revenue classifications. In the example of the audio visual tax, only items with a revenue classification of Audio Visual are subject to that 5.0% tax.

Admin and gratuity charges

Property-specific admin and gratuity charges can be defined for each corporate revenue classification. For example, if Property A charges 20% gratuity for Food, and Property B charges 18%, enter those percentages on the Food corporate revenue classification. When users add a food item to an event, the appropriate admin and gratuity charges apply based on the property. If a property’s admin and gratuity charges are not defined, the default admin and gratuity entered on the corporate revenue classification is used. See Enter property admin and gratuity.

Before R23, you might have created property-specific revenue classifications and added child revenue classifications to accommodate the different taxes, admin charges, and gratuity. You can continue to work in this way, or enable the property-specific admin and gratuity feature, available with version R23 and higher.

BEOs, banquet checks, and booking checks

Each section of a BEO, banquet check, or booking check template associates to one or more revenue classifications. The revenue classification assigned to the item controls where it displays on the document.

Reporting

Reports are divided into revenue categories and the revenue classifications control the specific category used for reported revenue. Revenue classifications are also used to define property budgets and sales manager goals.

Packages

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 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.

Learn more...

Create revenue classifications

Edit revenue classifications

View revenue classification details

Delete revenue classifications

Enter property admin and gratuity

Apply admin and gratuity to discounts

Video: All about taxes (includes revenue classifications)