What accounting entries are reflected in the Revenue Distribution Reports for Budget rentals that involve intercity splits or occur at foreign locations?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
All rental transactions input in Wizard will be processed through the Revenue Distribution System, and reports will be produced monthly highlighting the accounting entries associated with the rental transactions processed. These reports will provide proper detail to enable postings to local general ledgers and to research extraordinary items. Rentals that involve intercity splits or occur at foreign locations will reflect the appropriate accounting entries.
The following Revenue Distribution Reports will be provided:
Posting Statement
LRDB055 MONTHLY POSTING REPORT
This report lists, in detail, all rentals and amounts as reported on the Control Statement. Detailed on the report is the Inter-City rental activity for other Budget licensees and Budget corporate locations, separated by payables and receivables for each vendor.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the Revenue Distribution System processes all rental transactions input in Wizard and produces monthly reports that highlight the accounting entries associated with these transactions. For rentals that involve intercity splits or occur at foreign locations, the reports will reflect the appropriate accounting entries.
The reports generated by the Revenue Distribution System provide detail to enable postings to local general ledgers and to research extraordinary items. One such report, the LRDB055 MONTHLY POSTING REPORT, lists in detail all rentals and amounts as reported on the Control Statement. This report specifically details the Inter-City rental activity for other Budget licensees and Budget corporate locations, separated by payables and receivables for each vendor.
In essence, this system ensures that Budget franchisees receive comprehensive reports that break down rental activity, especially for rentals that cross geographical boundaries. This allows franchisees to accurately post transactions to their general ledgers and reconcile payments and receivables with other Budget locations, which is crucial for maintaining accurate financial records and ensuring proper revenue allocation within the Budget system.