Hospitality

Base Management Fee Accrual

Recording the monthly fee paid to the hotel management company (usually % of Total Revenue).

Account NameTypeDebit ($)Credit ($)
Management Fees: BaseExpense (+)3,000.00-
Due to Management CompanyLiability (+)-3,000.00

💡 Accountant's Note

Management companies typically charge 2-4% of Total Revenue as a base fee to run the hotel on behalf of the owner.

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