Complimentary Rooms

Setting up how COMP rooms Affect Daily Sales and ADR

Designate if complimentary rooms affect Average Daily Sales and Rooms Sold by going to Setup > Configuration > Guest Ledger > Account Codes. Modify any room revenue account codes. Account codes 100 Room Taxable and 101 Room Non-Taxable are the defaults. You have the ability to indicate if Complimentary Rooms are included in the Average Daily Sales and Rooms Sold total on the Dayend Close Report. If the room rate is zero (0), and if the rate should affect Average Daily Sales and Rooms Sold on the Dayend Close report, check the Include Zero Room Rate in ADR option on the Other Options tab of the account code. If Complimentary Rooms should not affect these figures and be ignored on the Dayend Close report, the option should NOT be checked. By complimentary, it means any room with a zero room rate.

It is recommended to create a Rate Code of COMP and then create a rate record using Rate Type *ALL with rate code COMP. The rate amounts will be zero indicating a room rate of ZERO. If you checkin a room which is complimentary, use rate type COMP. If you checkin a group of guests using a master bill (meaning the whole rate is on one bill), the other folios should be marked as override rate with a rate of zero. This will give you true analysis of "real" complimentary rooms and rooms with a zero rate because of a Master Bill will not falsely show as a complimentary room.

Posting and Adjusting COMP rates and refunding payments

When a room is COMP'ed or adjusted, and a guest has already made a pre-payment (whether it be cash at checkin or credit card prepayment at checkin), once the adjustment is made, the folio should show a credit balance. You must then refund the money back to the guest. If a cash paying customer, you can do this using account code 299 (Cash Refunds) or account 600 Refund due by Accounting or the credit card refund accounts. Adjustments to room revenue can be done by voiding room and tax or by using an adjustment account. Management should decide which is the best way for your organization.

Note: When voiding room and tax, the number of rooms sold that day is reduced on the dayend close audit. This allows for proper accounting since the number of rooms sold the day before is +1, a void (because of a COMP room) would be -1 which would yield a result of 0 rooms sold. If you do not want this adjustment to show on the number of rooms sold, you should use the Room Adjustment account code 171 rather than voiding room and tax.