WEEK 8

CHAPTER 7: MANAGING THE FINANCIALS

The front office processes a multitude of charges and

payments everyday, requiring a well-organised
booking system.
COMMON BOOKING PRACTICES

1. Debits and credits

Assets= items that have monetary value.

Liabilities=financial or other contractual obligations or
debts

Debit credit

Assets increase decrease

Liabilities decrease increase
FORMS USED TO PROCESS GUEST CHARGES AND
PAYMENTS

Folio
Standard folio lists the date of transaction, item, transfer
slip number for referral, debit or credit amount, and
updated balance

Transfer slip
Use to by desk clerk to transfer an amount of money from
one account to another while creating a paper trail

Paid-out slip
A numbered form that authorises cash disbursement from
the front desks bank for products on behalf of a guest or
employee of the hotel. Authorised payment of cash to a
vendor or an employee for a quick purchase of materials for
the hotel
ACCOUNT LEDGER

Guest ledger
A collection of folios (records of guests chargers and
payments) of current guests of the hotel.

City ledger
A collection of folios of unregistered hotel guests who
maintain account with the hotel

Account receivable
consist of both guest and city ledgers
POSTING QUEST CHARGES AND PAYMENTS

Processing guest charges and payments is referred to as

posting (increasing and decreasing assets and liabilities).

Posting adds or subtracts guest charges and payments to

the guests individual account.

Therefore, accurate and timely posting of guest charges and

payments is important to maintain accurate financial records,
as guest may decide to check out at any time during the day
and will require an accurate statement of transactions at that
time.

Posting charges and payments in a hotel with a PMS greatly

increases the accuracy of the posting.
POSTING QUEST CHARGES AND PAYMENTS cont/...

Point-of-Sale (POS) or (EPOS)

Room and Tax
Transfers and Adjustments
Paid-Out
Miscellaneous Charges
Phone
Display Folio
Report
TRANSFERRING GUEST AND CITY LEDGERS TO ACCOUNT
RECEIVABLE

Guests folio
Guest Hotel Room
(F/O)
F&B

Other services

Check-out
Cash
Guest ledger
Credit card

City ledger
Companys
account