> ## Documentation Index > Fetch the complete documentation index at: https://docs.pxaccounting.com/llms.txt > Use this file to discover all available pages before exploring further. # Business models overview > What a business model represents and the parts that make one up. A **business model** is PX's representation of your management agreement with the property owner. It tells PX how to translate raw PMS data into: * The **net rental income** you book as revenue. * The **commission** you take, including special rules for canceled bookings. * The **trust account** postings (cleaning, linen, maintenance, insurance, owner taxes, and so on). * Which **taxes** the PMC remits versus the owner. Without a business model, audits still run at the data-integrity level (revenue integrity, payment anomalies, charge splits). Ledger balance and owner statement reconciliation findings only fire when a business model is assigned. ## The three parts of a business model Which fees count as income vs expense. Confirmed and canceled rates, recognition, channel overrides. Recurring income and expense charges with PMC vs owner allocation. ## Status lifecycle A business model moves through four statuses: * **Draft** - work in progress. Diagnostics are deferred. Cannot be assigned to a property until activated. * **Active** - fully assigned and used by audits. The first transition from draft to active triggers a diagnostics batch run for every assigned property. * **Inactive** - all property assignments removed. The model still exists; you can re-activate or duplicate it. * **Archived** - hidden from the default list but kept for history and audit log integrity. ## Versioning Editing the rules of an active business model creates a **new version** automatically. Old versions stay frozen, so: * An audit run against a reservation always uses the version that was active on the reservation's check-in date. * Past results stay reproducible even after you update the model. * You can browse the version history from the model detail screen. A version bump triggers re-diagnostics for every assigned property so findings reflect the new rules going forward. ## What a model contains | Field | Required | Meaning | | ------------------- | ------------------- | -------------------------------------------------------------------------------- | | Name | Yes | Display name. | | Description | No | Free-text notes. | | Activation date | Yes (to run audits) | The date this model becomes effective. Earlier reservations use the prior model. | | Status | Yes | Draft, Active, Inactive, or Archived. | | Net rental income | No | Income items, expense items, excluded items. | | Commission | No | Confirmed, canceled, and minimum commission rules. | | Trust account | No | Recurring income and expense charges. | | Assigned properties | Auto | Number of properties using this model. | ## Where to start If this is your first model, walk through [Create a business model](/business-models/create). It uses a six-step wizard that explains each section as you go. If you already have one model and want to add another, you can either start fresh or **duplicate** an existing model from the list view and edit the copy.