This is something that we have to do manually to get an accurate report.
I’d like to request a feature that allows for prorated tax calculations on reservations that span multiple reporting periods. We need this so that our monthly state and county taxes will be accurate each month.
For example, consider a 7-night reservation from April 26 to May 3, with $1000.00 in total taxable charges. Since I only need to report taxes collected for April, I need to prorate the charges to reflect only the nights in May.
How it should work:
By selecting a Prorate option, the system should adjust the taxable charges and corresponding taxes based on the Period Nights instead of the Total Nights.
Example Calculation:
- Total Nights: 7 (April 26 – May 3)
- Nights in April (Period Nights): 5
- Prorated Daily Rate: $1000 ÷ 7 = $142.86
- Prorated Taxable Charges for May: $142.86 × 5 = $714.30
Prorated Taxes:
Using tax rates of 1%, 1%, 5%, and 6%, the system should calculate:
- 1% = $7.14
- 1% = $7.14
- 5% = $35.72
- 6% = $42.86
Currently, the report calculates taxes based on Total Nights (7 days), which means the system calculates taxes as if the full $1000.00 were taxable for April, even though part of the stay extends into May. This method is only useful for reporting total collected taxes but does not allow for proper tax reporting by period.
Suggested Implementation:
- Prorate Option: Add a Prorate checkbox or radio button that enables tax calculations based on Period Nights rather than Total Nights.
- Automated Proration: If Period Nights ≠ Total Nights, the system should automatically apply prorated calculations to report accurate taxes for each period. Otherwise, it defaults to the current full-stay tax calculation.
Thank you
