Applying Taxes and Fees To Reservation Sources

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This article will walk you through the process of applying taxes and fees to your reservation sources and will show the specifics of recalculating reservation rates with newly applied taxes/fees.
Applying tax/fee for the source means that the tax/fee will be added to the reservation created on specific source automatically.  

Overview

In myfrontdesk you may configure taxes/fees for different sources. Making this will automatically add the tax/fee to the reservation rate coming from specific source.

THINGS TO NOTE:

  • In order to apply tax/fee to source, tax/fee should be created in advance. To learn how to create taxes and fees, read our taxes and fees setup guide.
  • To learn more about the difference between exclusive and inclusive taxes, click here.
Applying Taxes or Fees to Reservation Sources

1. Click on "Manage" gear icon and navigate to the Reservation Sources page 

2. Select the sources type: primary or third party

3. Next to the source needed click 'Configure Taxes/Fees For Source'.
In example below the tax will be applied to source 'Walk In' meaning that the tax will be added automatically to all reservations created when selecting 'Walk In' as a source.

4. Select Tax(es) or fee(s) to be applied to the source

5. Click SAVE

If you have any reservations with the source selected in the future, the system will ask you whether to recalculate the reservations. See the section 'Recalculating existing future reservations' below for detailed information.

6. Now if you will create the reservation selecting source for which you applied tax - the tax will be automatically added and calculated.
In example below inclusive tax is added and calculated for reservation created with source 'Walk-In'.

Recalculating existing future reservations

If you applied a tax for source for which you have reservations in the future, the system will suggest you to recalculate the reservations:

Before selecting YES or NO please read the notes below carefully:

If YES is selected: the tax will be applied based on the current date of the reservation, NOT the status. In other words tax is applied only to pending transactions, NOT posted.

For example:

  • the tax will not be applied for all reservations with the check-out date in the past;
  • if the check-out date is today and the tax is not applied, this is because the transactions were already posted;
  • if there are a few days of stay left - tax will be applied to certain dates of stay that have pending transactions in queue.

If NO is selected: the tax won't be applied to future reservations, unless you edit the reservation which contains pending transactions (debit). The system already knows that the taxes have been changed, so they are in a queue, and as soon as the price on reservation with pending transaction is changed, the applicable tax will appear/change as well.

Starting mid-February 2018 myfrontdesk started to track whether a user has decided to recalculate reservations with new taxes. You may go to Activity Log and filter the list by log 'Applicable Taxes Updated for Source'/'Applicable Fees Updated for Source':

Have more questions? Contact Support

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