Correction in Folio

A new functionality is implemented to Folio, in form of the Correction button.

The aim of this functionality is to eliminate the remaining amount due after invoicing process is finalised, that might occur because of two reasons:

    • exchange rate differences ( currently it is handled only on invoicing level, with the Clear balance button, but not on Folio level )

    • rounding differences of the invoice items + payments attached to the invoice

Exchange rate differences are common in cases where there are multiple payments / invoices registered for one reservation or group in a foreign currency, on different dates. If these 3 factors are involved, most probably the clear balance needs to be used on the invoice + correction in the Folio.

Rounding differences can occur most commonly in those cases where the invoice contains multiple items, the quantity of the invoice items is bigger than 1 and the invoice is issued in a foreign currency. The reason of these factors is that the more times the multiplying needs to be applied, the more times there is a need for rounding. And in this case all the invoice items need to be multiplied with the quantity and the exchange rate as well. Once a multiplying is done, rounding to two decimals is applied.

And the difference in amounts happens because on the invoice we handle invoice items and payments as well. Since the payment is not calculated by adding up the Folio items one by one, so the payment amount is not put together by adding up partial amounts, but it is one amount, rounding needs to be applied only for one amount, not for many partial amounts.

Let’s take an example:

If the Folio contains only one accommodation item for 100 EUR and there is a payment also registered for 100 EUR, and we would like to issue an invoice in HUF for this accommodation item by using the registered payment, there will be no rounding problem, since we apply one multiplication for the 100 EUR invoice item and one for the 100 EUR payment, we will receive the same HUF amount for both.

If the Folio contains1 accommodation items for 100 EUR and one breakfast item for 22.5 EUR and there is only one payment registered in EUR for 122.5 EUR, when we issue an invoice in HUF, we will more likely see a rounding difference related issue. The reason is that we need to apply 2 multiplications for the invoice items, meaning 2 roundings , but only one rounding for the payment.

The Correction button in the Folio table appears if the following criteria is met:

      • all the Folio items are in “ billed “ ( or “ group billed “ in case of a group Folio ) status, but the amount due is not 0

      • the remaining amount due in the Folio is lower than the 2 % of the total reservation amount


Important to know:

    • Correction appears both in individual Folio and also in Group Folio

    • By clicking on the Correction button, a popup appears that explains that a Correction Folio item will be generated for the outstanding amount

    • Correction Folio item is generated for the first day of the reservation, falls under the “ Accommodation “ category

    • VAT % of the Correction Folio item: 0 % VAT 

    • Correction item can be deleted from the Folio the same way as the Noshow / Cancellation fee, and added again after deletion ( completely same behaviour as for the Noshow and Cancellation fee )

    • Correction item’s status is by default Billed, indicating that it can not be billed again

    • Filters in the Folio ( both Category and Status ) can be applied for filtering for this item

    • Correction item can not be routed

    • Log is generated in the change log whenever a Correction is applied or a Correction item is deleted

    • It might occur that the correction is needed at a point where only the partial amount of the Folio is billed, meaning there are Billed and Active status items simultaneously present in the Folio table. Please note that even in this case, the correction can only be applied at the very end of the billing process, when all the Folio items are in Billed status already.

 

Correction functionality & fixing the payment value and exchange rate relation:

    In case where the Fix payment value & exchange rate on payment date toggle is activated, meaning the payment value and exchange rate is fixed on it’s creation date, the Correction button in the Folio acts as a matching pair functionality of the Clear balance button on the invoice.
    In case where the above mentioned toggle is off, there is either no need at all for correction on Folio level, or it is probably less likely, since the Folio amount due changes on daily basis, depending on the daily exchange rate, thus how much of value is the payment in default currency worth. This can be considered as a “ natural “ correction on Folio level. When it comes to the invoicing part, the Clear balance functionality will still be needed, the only difference here is that after finalising the invoicing process, there is no need to adjust the Folio.

Correction item in the Reports:

The Performance reports ( Daily, Yearly and Comparison ) contain the Correction item amount in the Revenue / Accommodation category. 

The Sales breakdown report also displays the Correction items, when using the Category filter and seletcing the Accommodation option, you will see both the Accommodation and Correction items listed.