Rooms Division

Processes

Session 60
Cash Handling
Foundation Certificate in International
Hospitality Management

under Academic Supervision of

Session Objectives
By the end of this session you will be able to
Understand the importance of Cash Handling
Describe the process for tracking transactions
Types of Transitions
How to handle Foreign Exchange

under Academic supervision of

Tracking Transactions

A major concern is communication of transactional

information from remote points of sale (POS) to the
FO
Charge purchase transactions must be correctly
documented in order for the FO to maintain accounts
The night audit is intended to verify transactional data
to ensure that the FO collects accounts receivable for
all goods and services
At a point the guest checks out and the balance is
brought down to zero

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Types of Transactions
There are a variety of transactions as:
Cash Payment
Charge Purchase
Account Correction
Account Allowance
Account transfer
Cash Advance

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Cash Payment
Cash payments reduce a guests net outstanding
balance are posted as credits to the guest
thereby decreasing the balance of the account
A cash voucher is used to support such
transactions.

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Charge Purchase
These represent deferred payment transactions.
The buyer /guest receives the goods and
services from the hotel but chooses to pay for
them later. Thus increasing the outstanding
balance.
A charge voucher takes care of the same. This
is filled up by the POS and handed over to the
front desk

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Account Correction
It resolves an account correction posting error on
a folio
This is usually made on the same day the error is
made, before the close of business
Correction Voucher is used here
The correction may increase or decrease the
account balance

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Allowance
It involves 2 types of transactions.
For service recovery
A posting error noted after the close of
business (after Night Audit)
An allowance voucher is used
It requires management approval

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Sample of an Allow. vr. crtsy. the Taj President

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Vouchers
Account transfer
A transfer voucher supports the reduction in
balance on the originating folio and the
increase in balance in the destination folio
Cash advance
An advance voucher is used
If guests want cash advance against the room
this is supported by the cash voucher

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Internal Control
It involves tracking transaction documentation
Verifying account entries and balances
Identifying vulnerabilities in the accounting
system
Auditing is the process of verifying FO records
for accuracy and completeness

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Front Office Cash Sheet

The FO is responsible for collecting cash
transactions which will affect guest and non
guest accounts
Proper cash handling procedures and controls
must be established and implemented

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Front Office Cash Sheet

Why is it required?
Lists each receipt of disbursement of cash
Used to reconcile cash on hand at the end of a
cashier shift
Provides separate columns to record
transactions affecting guest accounts and non
guest accounts
Records money collected when guests check out
Provides space for itemizing cash disbursements
or paid outs
under Academic supervision of

under Academic
supervision
of
Crtsy:. The
Taj President

Foreign Exchange
Essentials
Regulated by RBI
Each hotel has to get valid authorization to deal
in FOREX
The Front office cashier is the authorized person
on behalf of the management who earns
FOREX.
The daily exchange rate should be displayed for
guests but these vary from time to time.
under Academic supervision of

Procedure for Foreign Exchange

Request the guest to produce his/her passport
details
Ask the guest for his / her room number
In case of non-residents, request the guest to
contact the lobby manager as an authorization is
required (Usually requests are not entertained)

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Procedure for Foreign Exchange

Find out the currency to be exchanged, and
determine whether it is exchangeable as per
Government banking regulations
Fill in the FOREX certificate
Request for the signature of the guest.
Compare the signatures
Receive the amount of foreign currency by
multiplying the foreign currency with the rate of
exchange
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Procedure for Foreign Exchange

Give the original copy of the certificate and the
total amount in local currency to the guest
Attach the second copy of the encashment
certificate to the notes/travellers cheques
Fill in the reception cashiers report
In some manual systems a Foreign Currency
Control Sheet needs to be filled

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Thank

under Academic supervision of

Recap Objectives
Now You are able to:
Understand the importance of Cash Handling
Describe the process for tracking transactions
Types of Transitions
How to handle Foreign Exchange

under Academic supervision of