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Reviewing Parent Revenue Category Revenue Estimates

Review the parent category revenue estimates from the Revenue Estimates view. Parent Category estimates take into account the revenue estimates for functions, their subfunctions, and child subfunctions. The section details how to review function revenue estimates, and also details how these estimates are calculated for functions with subfunctions.

Reviewing Function Revenue Estimates

When reviewing the revenue for function space rental, you may notice that the values contained in the fields may reflect a number of different function spaces. This is because the revenue totals for all active function spaces are reflected in this view. There may be more than one active space if you have switched from a function space to its backup spaces. For more information about switching, see Switching to the Backup Space.

This task is a step in Reviewing Revenue Estimates for Quote Functions.

To review function revenue estimates

1. Navigate to the Quotes screen > Quotes List view.
2. In the Quotes list, query for and select the quote.
3. In the Quote record, click the link in the Name field.
4. Click the Functions view tab, and select the function in the list.
5. Scroll down, and click the Revenue Estimates view tab.
6. In the Revenue Estimates list, review the information.

   The following table describes some of the fields.

   Field	Comments
   Parent Revenue Category/Revenue Category	The parent revenue category and revenue category with which function space revenues are associated.
   Projected Revenue - Total	Defaults to the Average Value Total. The user can update the value after consulting with the customer during the quote process.
   Projected Revenue Per Person	Displays the projected revenue per attendee. The Projected Revenue Total is divided by the Set number of attendees. If the Set number is unknown, then the Projected Revenue Total is divided by the Guaranteed number of attendees. If the Guaranteed number is unknown, then it is divided by the Projected number of attendees. If the projected number is unknown, then it is divided by the expected number of attendees.
   Average Value Total	Shows the average value for a given function type or business type on the date of the function by parent category. This value is set by the revenue managers as a guideline.
   Average Value Per Person	Displays the average value per attendee. The Average Value Total is divided by the Set number of attendees. If the Set number is unknown, then the total is divided by the Guaranteed number of attendees. If the Guaranteed number is unknown, then the total is divided by the Projected number of attendees. If the Projected number is unknown, then the total is divided by the Expected number of attendees.
   Line Item Expected Profit	Displays the expected profit for the sum of the line items. Calculated by multiplying Total Line Item Revenue by the profit percentage of that particular Parent Revenue category.
   Total Line Item Revenue	Sum of the revenue for the line items including functions and subfunctions.
   Total Line Item Revenue - Function	Sum of the projected revenue for the selected function.
   Total Line Item Revenue - Sub Function	Sum of the projected revenue for all subfunctions associated with the selected function.
   Per Person Line Item Revenue	Displays the line item revenue per attendee. Total Line Item Revenue divided by the Set number of attendees. If the Set number is unknown, then the revenue is divided by the Guaranteed number of attendees. If the Guaranteed number is unknown, then the revenue is divided by the Projected number of attendees. If the Projected number is unknown, then the revenue is divided by the Expected number of attendees.
   Projected Profit	Displays the projected profit for the function. Calculated by multiplying the Projected Revenue Total by the profit percentage defined in the Property Pricing Admin screen > Profit Series view.
   Service Charge	Displays the total service charges for the function.
   Tax	Displays the total taxes for the function.

Overriding the Average Values for Subfunction Categories

During the initial setup of a property's average values, the revenue manager assigns average values to the various function types that exist at a property. The revenue manager uses past history to estimate the average revenue contributions associated with each function type.

During the opportunity capture stage, the sales representative may not fill in all information about a function, and may decide to keep the function details at a very high level. As a result, only the details of the main functions may have been added to the event agenda, and not subfunction details.

This means that when the sales representative decides to detail the function by adding subfunctions, the revenue contributions are added twice to the function. This is because some of the categories for the function may be added at both the function level initially and then at the subfunction level when the function is detailed. For example, a Meeting function may be added to an opportunity with an Audio Visual and Coffee Break revenue contribution. Later, the sales representative may decide that the Coffee Break should be added as a subfunction of the main function. In this case, the revenue contribution for the function has been added twice. In order to make sure that the revenue contribution is not mistakenly counted twice, an average value override for subfunctions has been put in place in Siebel Hospitality. This average value override is subject to a number of rules as follows:

• Rule 1: The subfunction category revenue estimate takes precedence over the estimate that exists at the parent function level.
• Rule 2: Multiple subfunction revenues of the same category are added together.
• Rule 3: The subfunction category revenue override facility overrides one function level higher than the level at which it exists.

The rules for function category average value overrides are illustrated in the following examples:

• Example 1: One main function that contains two subfunctions
• Example 2: One Main Function that Contains a Subfunction and a Child Subfunction of the Subfunction

Example 1: One Main Function that Contains Two Subfunctions

Table 18 provides the details of the main function.

Table 19 provides the details of the first subfunction.

If the user indents Subfunction 1 under Function 1, then Rule: 1 applies; The subfunction category revenue estimate takes precedence over the estimate that exists at the parent function level. Table 20 shows the changes to Function 1 when Subfunction 1 is indented.

The Coffee Break revenue is overridden and is set to 0 at the parent function level. This means that the revenue estimate that is displayed at the quote level would be as shown in Table 21.

At this stage, the sales representative decides to add another subfunction to the parent function, Function 1. Table 22 shows the details of this subfunction.

When this subfunction is added, Rule: 2 is applied; Multiple subfunction revenues of the same category are added together. This is shown in Table 23.

The revenue estimate that is now displayed at the quote level is shown in Table 24.

Example 2: One Main Function that Contains a Subfunction and a Child Subfunction of the Subfunction

Table 25 provides the details of the main function.

Table 26 provides the details of the subfunction.

If the user indents Subfunction 1 under Function 1, then Rule: 1 applies; The subfunction category revenue estimate takes precedence over the estimate that exists at the parent function level. The revenue estimate that is displayed at the quote level would be as shown in Table 27.

The sales representative then decides to add a child subfunction to the existing function. The details of this child subfunction are shown in Table 28.

Table 29 shows the changes to the Subfunction 1 when Child Subfunction 1 is indented.

Rule 3 is the applied: The subfunction category revenue override facility overrides one function level higher than the level at which it exists. The revenue estimate that is displayed at the quote level would then be as shown in Table 30.