What is a Payment?
The Payments are the result of applying the Strategies that have been set for each Recipient. (If you have not done this yet, go here) It is THE way for the system to show you how much each Recipient earns from the reservations included in the Statement created in each case.
Depending on how you operate, and whether you manage your own properties or other people’s rentals, your Business may not necessarily need the Payment/Payout to know how much to pay (because you may not even need to pay to anyone), but to you will need to account and indicate the amount of Earnings of each of the Rentals/persons/partners/entities involved in the activity generated by the Reservations of every Period Accounted.
Ultimately, creating the Payouts will give you detailed Statistics within the Accounting, that will ensure you keep track of the real earnings generated per Property, per concept, and per Recipient at all times, and it will create a History for you, always accessible and exportable for your record and analysis.
How to create a Payment?
Payments can only be created from inside a Statement, by clicking on the “Create Payment” button.
Remember that you will only be able to create Payments if you have created your Recipients, as the Strategy of every Recipient is what the system needs to know in order to pull out the numbers for each Payout.
The next step is to decide to whom you are going to “pay”.
When creating the Payment, the system will ask you to select any of your Recipients in here (see screenshot below). In order to make sure all money received in the corresponding Statement is “paid” to someone, you will need to create a Payment for all the Recipients that take part in the operations of the reservations included in the corresponding period’s Statement.
This always includes you as a Rental Manager or Vacation Rental Agency.
This can include a Rental Owner, Cleaning company, Check-in Agent, Maintenance Company etc. Remember you will only be able to create a Payment for someone, if they are a Recipient.
Once you have selected the Recipient to whom you are going to “pay”, the system will automatically take the strategy set up for that Recipient and apply it to the reservations included in the Statement.
If everything is set up correctly in the Strategy, and if there are no extra items to add beyond the reservation amounts, you will only need to click “Looks good, Create Payment” at the bottom of the page.
Awesome, you have created your first Payment!
Now, you can go on and create the next Payments, one for each remaining Recipient involved. For this, you will have to go back to the Statement and follow the same steps again.
Exceptions and Extra stuff
If you would like to manually Add, Edit or Delete parts/concepts of the Payment, this can be done before clicking on the “Looks Good, Create Payment” button, but also after saving it, meaning that you can edit it at any time needed. MAKE SURE TO NOT GENERATE ANY INVOICE UNTIL YOU’RE FULLY SURE THINGS ARE ACCOUNTED CORRECTLY IN EVERY PAYMENT! See Below how to create an Invoice.
An example of why to edit the Payment manually:
- Add a one time Maintenance cost (change ceiling lamp)
- Delete the cleaning fee of 1 booking (clients complaint of insufficient cleaning so you discount the cleaning fee for them)
- Modify the Commission Percentage of the Rental Agency for 1 booking (imagine during Covid you decided to lower the prices in order to get reservations, and according to the discount applied on your prices, you decide to lower your commission as well - to make even efforts between you as a Manager and the Property owner).
Payments & Partial Payments
Once Payments are created, you can Mark each one of them as Paid or Partially Paid to keep track of what’s actually been paid out by you or to you:
This way you can easily identify if you have already paid the Rental Owner or any other Recipient everything or if you still need to pay them.
Inside the payment, you can add Attachments as well. This could be for example the Invoice of the Maintenance company or a Receipt of the Cleaning Products you have bought.
When you have created the Payments, you will be able to create the Invoices.
This is done inside the Payment you would like to invoice:
Next, you will be able to select the Language in which you want the Invoice, as well as the Invoice Date.
Automatically the Issuer of the Invoice will be the Recipient from the Payment, as you will be invoicing the services of that Recipient.
The VAT amount shown in the Payment will automatically be the one set up in the Recipient’s Strategy, however you can manually Edit it here if needed.
Then, you can choose who you want to be the Receiver of the Invoice.
After clicking “Save” the Invoice is automatically generated.
If needed, you can always edit the Invoice after creating it or create a rectification.
Lastly, you will be able to Download the Payment including the Invoices and Attachments or send it directly to anyone you want to.
Make sure to send us a message if you have any doubts about the Accounting Module.