Hospitality Groups · Track 1 · Tutorial 1 of 2
Set up intercompany types for a hotel group
Before you clear anything, give each item that moves between your companies a type of its own, so it is filed and checked where your team expects it. This is the set-up that suits a hotel group.
1Know what moves between your companies
A hotel group usually has a management company, hotel operating companies (OpCos), property companies (PropCos) that own the buildings, and a brand company. These are the items that move between them:
| From | To | What |
|---|---|---|
| Management company | Hotel OpCos | Base and incentive management fees |
| Brand company | Hotel OpCos | Brand royalties |
| Hotel OpCos | PropCo | Rent for the hotel |
| Management company | Hotel OpCos | Recharges for reservations, loyalty and insurance |
| Management company | Hotel OpCos | Loans for refurbishment |
Each item should have a type of its own, so it is filed, listed and checked where your team expects it. Your group may not have all of them, or may have others: adjust the steps below to what your companies actually book.
2Switch types on and off
- Select the group, and open Settings → Global Settings → Intercompany Types.
- Click the switch on each type below that needs changing. Each switch is saved the moment you click it.
| Type | Change | For |
|---|---|---|
| Management Charges | Keep on | Base management fees, and the base for the fee and royalty types. |
| Trade Receivables / Payables | Keep on | Unpaid fees, rent and recharges. |
| Rental / Lease Adjustments | Switch on | Rent between OpCos and PropCos. |
| Other Income / Expenses | Switch on | The base for Central Recharges. |
| Intercompany Loans | Switch on | Refurbishment and working-capital loans. |
| Sales / Purchases / Services | Switch off | Hotel groups whose charges are under the types above leave it empty. |
| Inventory Transfers | Switch off | Not used for hotels. |
A new group starts with Trade Receivables / Payables, Sales / Purchases / Services, Inventory Transfers and Management Charges switched on. Other Eliminations is always on. See Switch on and add intercompany types.
3Add types of your own
- Click Add type.
- In Type name, enter Incentive Fees.
- In Accounting treatment, choose Management Charges, and click Save type.
- Add the others the same way.
| Type name | Accounting treatment | For |
|---|---|---|
| Incentive Fees | Management Charges | Incentive fees on hotel profit, kept apart from base fees: they are often booked in different months. |
| Brand Royalties | Management Charges | Royalties for the brand. |
| Central Recharges | Other Income / Expenses | Reservation, loyalty, marketing and insurance costs recharged to hotels. |
The accounting treatment decides how the type behaves and which accounts its entries accept. A type of your own is in the menu only while the built-in type it works like is switched on.
4Arrange the menu
- Click Manage menu.
- For each group below, enter its Group name and click Add group.
- Drag each type onto its group, and click Save menu.
| Group | Types in it |
|---|---|
| Fees | Management Charges, Incentive Fees, Brand Royalties |
| Property | Rental / Lease Adjustments |
| Recharges | Other Income / Expenses, Central Recharges |
| Balances and funding | Trade Receivables / Payables, Intercompany Loans |
See Arrange the Intercompany menu for moving, renaming and removing groups.
Check
Intercompany in the sidebar shows the groups above, and each type of your own is listed on Intercompany Types with Kind Custom and status Active.
5If something goes wrong
| A type of your own isn’t in the menu | The built-in type it works like is switched off. Switch it on. |
|---|---|
| … cannot be used in this elimination type. | The type’s accounting treatment doesn’t accept that account. Check the table in Switch on and add intercompany types, and choose the treatment whose accounts fit. |
| The arrangement was lost | The dialog was closed without Save menu. Arrange it again and save. |
Want more detail? See the documentation