Front Office Accounting

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Front Office Accounting

• HAMG 1313-
• Front Office Procedures

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Account Management
Debits Credits
Charges Payments
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Front Office Accounting Formula

• Previous Balance
• Debits
• - Credits
• Net Outstanding Balance
• PB DR - CR NOB

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Hotel Accounting Systems

• Non-Automated
• Accounts kept manually
• Semi-Automated
• Accounts kept using posting machine
• Previous Balance Pickup
• Fully-Automated
• Accounts kept using computers
• Point-of-sale link

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Hotel Accounting Terms

• Account
• A collection of all transactions incurred by a
  guest.
• Folio
• A statement of all transactions that affect the
  balance of an account.
• Posting
• The process of recording transactions onto a
  folio.

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Types Of Folios

• Guest Folio
• Front office is responsible during occupancy
• Non-guest Folio
• Used for House accounts
• Master Folio
• Used for group accounts
• Incidental Folio
• Used when folios are split

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Hotel Ledgers

• Ledger
• A summary grouping of accounts
• Guest Ledger
• Set of registered hotel guest accounts
• City Ledger
• Set of non-guest accounts
• Transfer of non-settled accounts
• Responsibility shifts from front office to
  accounting department

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Hotel Accounting Terms

• Advanced Deposit
• Pre-payment to guarantee reservation
• After-departure charges
• Signature on file
• Cash Overages Shortages
• Beware of both
• Due Backs
• Pay out more than you receive

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Hotel Vouchers

• Voucher
• Details a transaction to be posted
• Correction Voucher
• Supports a correction on the Same Day as the
  error
• Allowance Voucher
• Supports a correction After the close of business
• Requires management approval

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Hotel Vouchers

• Transfer Voucher
• Reduces one account and increases another
• Paid-out Voucher
• Accounts for cash advances on the guests folio
• Cash Voucher
• Supports the posting of a credit to a guest folio
• Charge Voucher
• Supports the posting of a debit to a guest folio