Revenue classifications

A revenue classification does three very important things:

The following revenue classifications are included: Food, Beverage, Resource, Audio Visual, Function Room Rental, Administrative Charge, and Other. You'll use these standard revenue classifications most of the time; however, you may also need to create sub-classifications for special tax or service charge situations.

Because revenue classifications affect the prices you charge customers, it's critical that you work with your finance team to make sure you have the correct admin charge and gratuity percentages. Admin charge is the amount that is kept by the property. It's considered revenue that might be included in budgets or goals, and it may or may not be taxed. Gratuity is the amount that is given to the servers. It's not counted as revenue and is typically not taxed.

You will apply taxes to the revenue classifications in the Taxes area of Setup.

When you create your property's items, you assign them the appropriate revenue classification. This ensures the correct admin charge and gratuity percentages are applied to those items on the banquet check.

Ask your Controller or Accounting Manager to provide you with the calculations so you understand and properly enter things according to your city, county, state, and federal requirements.

To enter the percentages for admin and gratuity, click the down arrow next to each revenue classification.

If you have a situation where you have different percentages for the same type of revenue, you can create a sub-classification. For example, if you have to custom order special audio visual equipment that is not part of your standard inventory, you might apply a larger admin charge. So, in the main AV revenue classification, enter the admin charge for your in-house AV equipment. Then create a sub-classification for Outside AV and enter the higher admin charge there.