Do you have monthly fixed recurring Expenses/Incomes suchs as subscription payments, external cleaning/gardening contracts or maybe even monthly salaries you want to add to your accounting?
These elements do not appear in the Booking Breakdowns since they are not directly paid by the guest, so how do you add these to your Accounting?
For this, you can use the Recurring Items feature in the Recipients
Definition: Recurring Items are any items that need to be paid/received on a current basis. This can be set up either per Statement or per Booking.
If you'd like to add a Recurring EXPENSE, the amount should be NEGATIVE as it is a Cost.
On the contrary, all the other Items have to POSITIVE amounts since they are Recurring Incomes.
As said, A Recurring Item is a cost/income for a Recipient that does NOT come directly from a reservation. Therefore, you will need to assign the exact same amount as a cost/income to another Recipient to balance it out.
In other words, all costs that are paid to someone, need to be received as an income by someone else. This way, no money gets “lost or left out”.
Example 1. Fixed Monthly Cleaning Costs for the Rental Agency.
Let’s say you pay a fixed per Rental per Month of 200€ to the Cleaning Agency. These cleanings are not related any Booking directly, thus there are also cleanings despite not having any Bookings.
In this case, you will do the following with the Strategies:
In the Strategy of the Rental Agency, add a Recurring Expense of -200€ as a Fixed per Statement.
In the Strategy of the Cleaning Agency add a Recurring Fee of 200€ as a Fixed per Statement.
Example 2. Netflix (or other streaming subscription) Costs
You (as the agency) pay 20€ per month for a Netflix subscription. You then charge this to the Rental Owner to earn back the amount.
In this case, you will do the following:
In the Strategy of the Rental Agency, add a Recurring Fee of 20€ as a Fixed per Statement.
In the Strategy of the Rental Owner, add a Recurring Expense of -20€ as a Fixed per Statement.
Rental Price and Fee items will be added to your Invoice (if you create one). On the contrary, Expenses or Other items are NOT added to Invoices.
Expenses are always negative amounts. On the contrary, Rental Price, Fees and Others are always positive amounts.
You always need to balance out Expenses by Incomes to make sure the Statement in its whole is balanced.