# Pooling Revenue

NOTE: This article only applies to properties that Pool Revenue. For properties that do not Pool Revenue, please proceed to the next article, Expenses & Payments

## Steps for Pooling Revenue

Once revenue has been imported and is confirmed to be correct, proceed to Revenue & Occupancy > Pooling Calculation.

Once the Pooling Calculation is completed OA will open the Pooled Revenue screen (under the Revenue & Occupancy menu). This area will show how the room revenue was distributed among the units.

To view the distribution for a specific pool, use the Area drop down menu at the top right hand corner to select a specific pool.

In the example below, note that the Total Revenue for Building A was \$975.00, and that each unit received \$195.00 in Room Revenue.

## How Pooling is Calculated in OA

Below is an example of how Room Revenue is distributed among the members of a Pool. Here we have Building C which consists of 5 units (Configuration Settings > Units > Area). Each unit has a Revenue Factor which helps determine what percentage of Room Revenue a unit will incur.

Revenue is divided among a pool on a day by day basis. Different factors can affect how revenue is divided among members of the pool.

• Did an owner stay in his unit at some point during the month?
• Did a guest of an owner stay in a unit at some point during the month?
• Was a room “closed” (ie: on maintenance) at some point during the month?
• Did an owner or owner guest stay have room revenue?

In the next section we will review 5 different scenarios of how revenue gets distributed among Units.

Below is the Room Revenue for Building C for the month of July before Pooling:

Here is the revenue distribution for Building C after Pooling has been completed

For this specific example revenue was only brought in on July 24th, 26th, 27th and 28th.

We will look at each day to see how the revenue was distributed.

On July 24th:

Unit 308 – vacant
Unit 309 – had a Guest Stay with \$75.00 in revenue
Unit 310 – vacant
Unit 311 – vacant
Unit 312 – vacant

Total Revenue = \$75.00

Revenue Distribution:

Therefore:

Unit 308 = \$75.00 x .15 = \$11.75
Unit 309 = \$75.00 x .15 = \$11.75
Unit 310 = \$75.00 x .20 = \$15.00
Unit 311 = \$75.00 x .25 = \$18.75
Unit 312 = \$75.00 x .25 = \$18.75
Total = \$76.00

**NOTE: There will be times where the amount of Revenue Distributed is more than, or less then the actual Revenue. OA is simply following the laws of mathematics based on the formula above.

On July 25th:

Unit 308 – had an Owner Guest Stay with \$100.00 in revenue
Unit 309 – had a Guest Stay with \$75.00 in revenue
Unit 310 – vacant
Unit 311 – vacant
Unit 312 – vacant

Total Revenue = \$75.00

**The \$100 for Unit 308 is not counted in the total revenue because this was an Owner Guest Stay. If this revenue needs to be counted, change the Status of the stay from Owner Guest to Guest.

Therefore:

Unit 308 = \$75.00 x 00.000 = \$00.00
Unit 309 = \$75.00 x .17647 = \$13.24
Unit 310 = \$75.00 x .23529 = \$17.65
Unit 311 = \$75.00 x .29412 = \$22.06
Unit 312 = \$75.00 x .29412 = \$22.06
Total = \$75.01

**NOTE: There will be times where the amount of Revenue Distributed is more than, or less then the actual Revenue. OA is simply following the laws of mathematics based on the formula above.

On July 26th:

Unit 308 – vacant
Unit 309 – had a Guest Stay with \$75.00 in revenue
Unit 310 – vacant
Unit 311 – vacant
Unit 312 – had an Owner Stay with \$50.00 in revenue

Total Revenue = \$75.00

**The \$50 for Unit 312 is not counted in the total revenue because this was an Owner Stay. If you did want to count this revenue, you would need to change the Status of the stay from Owner to Guest.

Revenue Distribution:

Therefore:

Unit 308 = \$75.00 x .20000 = \$15.00
Unit 309 = \$75.00 x .20000 = \$15.00
Unit 310 = \$75.00 x .26666 = \$20.00
Unit 311 = \$75.00 x .33333 = \$25.00
Unit 312 = \$75.00 x .00000 = \$00.00
Total = \$75.00

On July 27th:

Unit 308 – vacant
Unit 309 – had a Guest Stay with \$75.00 in revenue
Unit 310 – vacant
Unit 311 – Closed (ie: was on maintenance)
Unit 312 – vacant

Total Revenue = \$75.00

Revenue Distribution:

Therefore:

Unit 308 = \$75.00 x .15 = \$11.75
Unit 309 = \$75.00 x .15 = \$11.75
Unit 310 = \$75.00 x .20 = \$15.00
Unit 311 = \$75.00 x .25 = \$18.75 **A closed room still receives revenue
Unit 312 = \$75.00 x .25 = \$18.75
Total = \$76.00

On July 28th:

Unit 308 – vacant
Unit 309 – had a Guest Stay with \$75.00 in revenue
Unit 310 – had an Owner Stay with \$0.00 in revenue
Unit 311 – vacant
Unit 312 – vacant
Total Revenue = \$75.00

Revenue Distribution:

Therefore:

Unit 308 = \$75.00 x .1875 = \$14.06
Unit 309 = \$75.00 x .1875 = \$14.06
Unit 310 = \$75.00 x .0000 = \$00.00
Unit 311 = \$75.00 x .3125 = \$23.44
Unit 312 = \$75.00 x .3125 = \$23.44
Total = \$75.00

When adding up all the totals for each day, they add up to the “Pooled Revenue” Total for each unit.

NOTE: The Total Revenue of the Pooled Revenue for Building C above is \$375.01, but the Total Revenue for the Building C pool was \$525.00.

• \$100.00 of the discrepancy is due to the Owner Guest Stay on July25th that had revenue attached to the booking. Owner Guest Stay revenue is NOT distributed among a pool.
• \$50.00 of the discrepancy is due to the Owner Stay on July 26th that had revenue attached to the booking. Owner Stay revenue is NOT distributed among a pool.
• \$0.01 of the discrepancy is simply due to the law of mathematics (rounding issues).