Click Here if RDPWin v3.0.007.09 or higher is installed
Overview
For the 2011 calendar year (January 1, 2011 - December 31, 2011), there are new procedures required in order to adjust owner revenue on the statement. These procedures are necessary to ensure accuracy of the IRS 1099 reports in RDP. This procedure eliminates the need to use RDP DOS 502-Inquire on Owner History program to adjust the 1099 gross revenue totals. More and more operating systems are 64-bit, and therefore are not compatible with the RDP DOS 16-bit program. It is imperative that this procedure be implemented prior to closing the January 2011 owner statement. However, RDP has released a program in RDPWin v3.0.007.09 that will allow changing the B7DF revenue transaction code. Use this program instead if version 3.0.007.09 or higher is installed.
Adjust Owner Revenue
Attempt to adjust owner revenue by fixing the room charge transaction on the reservation and reprocess revenue. If this can't be done, use the Adjust Revenue program on the B7DF or B7DI transations.
- Go to the Masters main menu --> Owners --> Find.
- Select the owner for the adjustment.
- Click the Transaction Tab --> click the Change button.
- Select the B7DF or B7DI code to adjust and click the Change button.
- Click the Adjust Revenue button.
- Enter the new revenue amount.
- Change the Pay Code if necessary.
- Click the Revenue button and verify all transactions.
- Click Save.
Posting Revenue Corrections (Adjust Owner Revenue not available)
The revenue adjustment procedure involves posting a single transaction code for a revenue correction on the owner account that is NOT used for any other posting categories in the system. For example, transaction code B7RA - Revenue Adjustment code is used to adjust the gross revenue amount after the Process Revenue function was run, not the net revenue. This code CANNOT be used to correct the management fee, travel agent or credit card fee amounts. A separate transaction code will need to be posted for other adjustments on the statement. Because the new 1099 report will read the original gross revenue transaction (B7DF) and the designated revenue adjustment transaction, it will provide an accurate gross revenue amount needed for the 2011 1099 form.
The new procedure is only necessary for the months in which owner revenue needs adjusting after the Process Revenue program is completed, and the B7DF transactions are created on the owner account. If corrections to the room charges on the reservation are made prior to processing revenue and no changes are needed for the owner statement, these procedures are not applicable. Some properties may already have a similar procedure in place for adjusting revenue. Please contact RDP Support for more information.
As mentioned before, a new program in RDPWin v3.0.007.09 or higher allows changes to be made to the revenue transaction (B7DF), management fee transaction (B7DG), credit card fee transaction (B7DJ), and travel agent commission transaction (B7DH). Use this feature if it is available instead of manually posting the revenue adjustment, because changes will automatically be reflected on the statement and 1099.
Procedure for Posting Revenue Corrections
- Create a revenue adjustment transaction code (if one does not already exist). This code must be used ONLY for gross revenue adjustments.
- In RDPWin, go to the Accounting main menu --> Transactions --> Add.
- Select the B7-City Ledger-Owner Billing from the Ledger drop down.
- Enter the 2-digit transaction code for the gross revenue adjustment in the Code field. Note: the transaction code cannot start with the letters 'D' or 'S.'
- Enter the transaction description in the Description field. Make sure the description includes something to signify this transaction should be used only for gross revenue adjustments, such as "Revenue Adjustment ONLY." Note: the description can be change when posting to the owner account in order to specify the adjustment reason on the statement, like "Revenue Adjustment Res# 1234."
- Select the correct Tax Category and G/L Account. If adding a new G/L account for this transaction code, click the Add G/L button. Note: the 1099 report does not read the G/L account, so other transactions can be configured to use this G/L account.
- Save & Close.
- Post the gross revenue adjustment transaction code to owner, only if needed. Do not post a net revenue amount. For example, revenue was processed for an owner with the gross amount of $1000. The owner should have received $1200. The management fee was processed at $500 but should be $600. Use the gross revenue adjustment transaction code to post a $-200 to the owner account, making the gross revenue amount total $1200. Use a different transaction code to post the management fee adjustment.
