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Revenue Allocations for Menus and Packages

In the context of menus and packages in Siebel Hospitality, allocation means how much revenue is assigned to each item in a menu or package. Because different items might belong to different revenue streams, you can designate what portion of the total revenue Siebel Hospitality allocates to each item in a package.

The revenue allocation for a product goes to a revenue category. Revenue allocation mechanisms are different for menus and for packages.

Menu revenue allocation. The revenue allocation for a menu is determined by the current list price and revenue category of the parent menu record. A menu has a designated revenue category, and the individual menu items also have revenue categories that might be different from the revenue category of the parent menu. In this case, the revenue category of the parent menu overrides the revenue categories of the child items, and all revenue for a menu goes to the revenue category of the parent menu.

Package revenue allocation. A package does not have a revenue category, but the individual package items do. In the case of a package, the revenue is allocated to the revenue categories of the child items. You can calculate the revenue allocation manually, or Siebel Hospitality can calculate the revenue allocation automatically.

If Siebel Hospitality performs the revenue allocation for a package, the result is determined by whether system allocation is selected in the parent package record, and by the revenue categories and quantities of the individual child package items. In each child package item, Siebel Hospitality first looks at the per person allocation. If the per person allocation does not have a value, Siebel Hospitality then looks for the list price.

Examples of revenue allocations are as follows:

• Event order item or menu item. Consider the case of a single menu item or event order item, such as a television set. This simple product belongs to the Audio-Visual revenue category. The price of this item is 20.00. All of that 20.00 is attributed to the Audio-Visual revenue category.
• Menu. Consider a menu with two F&B items, steak and ice cream. Steak is associated with the Dinner Entrees revenue category, while ice cream is associated with the Dinner Dessert revenue category. The menu itself, however, is associated with the Dinner Entree revenue category. Consequently, the entire price of the menu, including the ice cream, will go to the Dinner Entree revenue category.
• Package. Finally, consider a package, in which you can specify how much revenue to allocate to each revenue category of the package items. The package has three items with individual prices of 10.00 each, for a total of 30.00. If the items are sold separately, the full prices are allocated to the respective revenue categories of the products.

  The package, however, is priced at 20.00. If you calculate the allocations manually, you might designate the allocations as Product A allocation equals 10.00, Product B allocation equals 5.00, and Product C allocation equals 5.00. If you create system-generated allocations, Siebel Hospitality performs a calculation that is weighted by the list prices and quantities of the component products. In the case of a package that has three items with individual prices of 10.00 each, where the package price is 20.00, an automatic allocation gives 6.66 to each revenue category of the products.

  NOTE:  When calculating allocations, consider the quantities of the items involved. For example, if the list price of a package line item is 50.00 and the quantity is 2, then that item contributes 100.00 to the price of the package.