8 - Front Office Accounting

Question 1

Folio

Answer 1

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

Question 2

Posting

Answer 2

process of recording transactions

Question 3

Vouchers

Answer 3

details a transaction to be posted to a front office account

Question 4

Point of Sale(POS)

Answer 4

the physical location which goods or services are purchased.
Revenue centre = a point of sale
Example : restaurants, room service, laundry, valet

Question 5

Advantages of using automated POS

Answer 5

1. communicate directly with front office system
2. Reduce time to post charges to guest folio
3. minimize number of times transactional data must be handled
4. virtually eliminate late charges

Question 6

Ledger

Answer 6

a summary grouping of accounts

Question 7

Floor limit

Answer 7

a limit assigned to hotel by the payment card company indicating the maximum amount hotel is permitted to accept from a card without special authorization

Question 8

House limit

Answer 8

a limit assigned to the guest by hotel inidicating how much they can charge to their account without partial settlement.

Question 9

Payment

Answer 9

Reduce a guests net outstanding balance, cash voucher maybe used.
only payment occur at FD will be recorded into guest folio.
If guest pay at POS, no entries made in folio.

Question 10

Charge purchase

Answer 10

deferred payment transactions.
happens when guests do not pay at POS,
proof of occupancy must be presented.
In non-automated properties, they use charge voucher

Question 11

Account correction

Answer 11

posting error on a guest or nonguest folio.
made on same day.
correction voucher is used, signed by FD employee and approved by FOM

Question 12

Account Allowance

Answer 12

1. decrease folio balance as comensation for poor service or rebate for coupons/discounts.
2. correct posting errors detected after daily audit

allowance voucher is used, require management approval

Question 13

Cash Advance

Answer 13

cash flow out of hotel resource.
increase guests outstanding balance.
cash advanced voucher is used.
usually use to pay on guest behalf in advance.

Question 14

Cash bank

Answer 14

Amount assigned to as cashier to handle various transactions that occur during a work shift

Question 15

Bank Limit

Answer 15

Amount of cash in the cashier bank when it is issued at the beginning of a work shift.

Question 16

Net cash receipt

Answer 16

The amount of cash and checks in the cashier’s drawer, minus the amount of the initial cash bank

Question 17

Overage

Answer 17

An imbalance when the total amount of cash and checks in the cashiers bank is greater than the initial bank + net cash receipts

Question 18

Shortage

Answer 18

An imbalance when the total of cash and checks in the cashiers bank is lesser than the initial bank + net cash receipts.

Question 19

Due back

Answer 19

occurs when a cashier pays out more than he/she receives.
Ex : there is not enough cash in the cash drawer to restore the initial cash bank.

happens when FO accepts many checks or encashes large amount of foreign exchange.

Question 20

Paid out

Answer 20

Cash disbursed by FO staff on behalf of guest

Question 21

how to establish inhouse credit

Answer 21

present a valid payment card or direct billing authorization during registration

Question 22

does PIA guest have inhouse credit

Answer 22

no, PIA guest have no charge privileges .

“no post” status.

Question 23

High balance/high risk account

Answer 23

guest accounts that are approaching or have reached or have exceeded the house limit.