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occupancy

During the blank or in-stay phase of the guest cycle it is imperative for the front desk staff or the front office associate to ensure that charges made by the guest are all accounted for.

Front Office accounting system

is an essential process designed to monitor and chart the financial transactions of guests and non-guests at the hotel during each stage of the guest cycle.

During the pre-arrival

 A guest accounting system captures data related to the form of guarantee for a reservation, and tracks pre-payment and advance deposits.

Upon arrival

The system documents the application of room rate and tax.

During occupancy

 A guest accounting system is responsible for tracking guest charge purchase.

During guest checkout

The system ensures payment for goods and services provided.

After guest checkout

 If a guest's bill is not fully paid at checkout, the balance is transferred from guest to non-guest records.

Guest accounts

must be updated regularly with charges and adjustments because this impacts on company profits.

 ACCOUNT

 is a form on which financial data are accumulated and summarized.

 ACCOUNT

All financial transactions that occur in a hotel affect some blank

 ACCOUNT

may be imagined as a bin or container in which the results of various business transactions are stored.

Resident accounts

Financial transactions with guests who have registered and who are currently staying at the hotel.

guest accounts

Resident accounts also called as

Resident accounts

are created when guests guarantee their reservations or at the time of their registration.

Master Folio

or account for the room charges which will be sent to the company for settlement.

Incidentals folio

 for their personal charges

non-guest accounts

 City Accounts also called as

City Accounts

Are records of financial transactions between the hotel and non-resident guests.

City Accounts

These accounts may also be called house accounts or non-guest accounts.

City Accounts

Guests who have sent pre-payments to guarantee their bookings.

City Accounts

Guests who walk out of the hotel without settling the outstanding balance on their account (skippers).

Management Accounts

These are expense accounts or allowances given by some hotels to the hotel managers to entertain guests or potential clients.

Management Accounts

May also be used when charging FOC's given to VIPs or complaining guests.

FOLIO

 Is a statement of all transactions affecting the balance of a single account

FOLIO

When an account is created, it is assigned a blank with a balance zero.

Posting

FOLIO

The process of recording transactions on a guest folio is called

FOLIO

 At settlement, the Blank record of a guest account is returned to a zero balance by cash payment or by transfer to an approved credit card.

Debit entries

increase the guest's outstanding balance.

Debit entries

Room charges

Restaurant/coffee shop/bar

Use of hotel facilities – health center, business center, transportation

Credit entries

made in the guest folio reduce the guest's outstanding balance and are usually indicated by a negative amount.

Credit entries

• Prepayments
  
  

• Payments for part of the stay
  
  

• Payments for final settlement
  
  

• Amendments/adjustments

Guest folio

an account assigned to an individual person or guestroom.

Master folio

an account assigned to more than one person or guestroom, usually reserved for group accounts or corporate.

Incidentals folio

 records all expenses (incidental charges) to be paid by the guest at the time of checkout.

Non-guest folio

an account assigned to a non-guest business or agency with hotel charge purchase privileges.

Non-guest folio

or semi-permanent folio/City folio

VOUCHER

is a document detailing a transaction to be posted to a front office account.

VOUCHER

Or it is a written statement or documentary evidence of a financial transaction.

VOUCHER

is used to transfer transaction information from the source of the transaction (POS) to the front office.

VOUCHER

A common use of blanks is to notify the front office of guest charge purchases at the hotel's revenue outlets, which need posting.

POINT-OF-SALE (POS)

 Any hotel department that collects revenues for its goods or services is considered a revenue center and thus a blank

revenue center

 POINT-OF-SALE (POS)

Any hotel department that collects revenues for its goods or services is considered a blank and thus a point of sale.

POINT-OF-SALE (POS)

May include restaurants, lounge, room service, valet service, parking garages, and telephone service.

LEDGER

is a grouping of accounts.

Back Office Accounts Receivable ledger (A/R)

Two main types of ledgers:
a.blank
b. Back Office Accounts Payable ledger

Back Office Accounts Payable ledger

Two main types of ledgers:
a. Back Office Accounts Receivable ledger (A/R)
b. blank

Credit card payments

are processed and added to the master credit card account according to type of card – Visa, MasterCard, etc. (Accounts Receivable ledger).

Accounts Receivable ledger

Credit card payments are processed and added to the master credit card account according to type of card – Visa, MasterCard, etc. (blank)

Bill-To-Account

(for company/travel agent) charges must be transferred to the back-office accounts receivable

accounts receivable

Bill-To-Account/Direct Billing (for company/travel agent) charges must be transferred to the back-office blank

Back Office Accounts Receivable

 Some methods of payment require transferring folio balances to the back office for further processing thus they end up in A/R ledger.

Guest ledger

Includes only the amounts due from resident guests.

City ledger

Includes all other amounts due, as from credit card companies, contracted companies, travel agents, skippers, banquet events.

Back Office Accounts Payable

These handle amounts of money prepaid on behalf of the guest to the hotel for future consumption of goods and services.

Back Office Accounts Payable

When a guest deposits for a future accommodation, the amount will be placed in this ledger and then will be transferred to his guest folio in his account as soon as he checks in.

Account Maintenance

Since guests may inquire about their outstanding accounts balance or check out of the hotel with little or no advance notice, it is important that guest folios be accurate, current, and properly filed.

Account Maintenance

Previous Balance – Debit – Credit – NET OUTSTANDING BALANCE (PB – DR – CR – NOB)

Credit monitoring

A line of credit is set for a guest who establishes acceptable credit worthiness during the reservations or registration process.

Credit monitoring

Guests who present an acceptable credit card at registration may be extended a line of credit equal to the floor limit (set by their bank).

Tracking of transactions

• Cash payment will decrease the NOB of the guest.
  
  

• Charge purchase will increase the NOB of the guest.
  
  

• Account correction will correct or void an erroneous entry in an account.
  
  

• Account allowance decreases the NOB of the guest due to compensation or rebate.

Creation and maintenance of accounts

• A line of credit is set for a guest who establishes acceptable credit worthiness during the reservations or registration process.
  
  

• Guests who present an acceptable credit card at registration may be extended a line of credit equal to the floor limit (set by their bank).
  
  

Cash payment

will decrease the NOB of the guest.

Charge purchase

will increase the NOB of the guest.

Account correction

 will correct or void an erroneous entry in an account.

Account allowance

decreases the NOB of the guest due to compensation or rebate.

 SETTLEMENT OF ACCOUNTS

The collection of payment for outstanding account balances is referred to as account settlement.

account settlement

The collection of payment for outstanding account balances is referred to as blank

Settlement

means bringing the account balance to zero because of a cash payment in full or transfer to an approved direct billing or credit card account.

Front office accounting

 although not mentioned in the guest cycle, is an integral part in the experience because it will facilitate a smoother transaction during the departure of the guest.

guest accounting system

is responsible for tracking guest charge purchase.

guest accounting system

 captures data related to the form of guarantee for a reservation, and tracks pre-payment and advance deposits.