Front Office Accounting

Question 1

Front office accounting system

Answer 1

Create and maintains an accurate accounting record for each guest and non guest account.
Tracks financial transaction throughout the guest cycle
Ensure internal control over cash and non- cash transation.
Records settlement for all goods and services provided.

Question 2

What is an account

Answer 2

An account is a form in which financial data are accumulated and summarized.
The increase and decrease in account are calculated and the resulting monetory amount is called ACCOUNT BALANCE.
Front office accounts are recordkeeping device to store information about guest and non-guest financial transaction.

Question 3

Types of account?

Answer 3

Guest account n non guest account

Question 4

Non - guest account

Answer 4

Non-Guest ccount-A hotel may extend in-house charge –previledge to local businesses or agencies as a mean of promotion.These account may also be called house account or city account.

Question 5

Guest account

Answer 5

Guest Account-A guest account is a record of financial transaction between guest who is staying in hotel and Hotel.Guest account are created when the guest either guarantee the reservation or register.During occupancy the Front office is responsible for and record all transactions effecting the balance of a guest account.

Question 6

Define charge privilege

Answer 6

When guest uses services of the hotel and pays later

Question 7

Define house limit

Answer 7

House-Limit-The credit limit given by hotel to the guest

Question 8

Floor limit

Answer 8

-The credit limit given by credit card companies to the customer.

Question 9

Define guest ledger

Answer 9

Guest Ledger-The set of account of all the guest currently registered in a hotel ,also called Front Office Ledger ,transient ledger or room ledger.

Question 10

Non guest ledger

Answer 10

Non –Guest Ledger-The collection of all non-Guest account including unsettled departed guest account.

Question 11

What are the different types of vouchers

Answer 11

Cash voucher
Charge purchase voucher
Account correction
Allowance voucher
Transfer voucher
Cash advance voucher

Question 12

Cash voucher

Answer 12

Cash payment made at the Front Desk to reduce a Guest net outstanding balance are posted at credit to guest or non-guest account,thereby decreasing the balance of acount.
When cash is paid for good and services at a location other than Front Desk,no entry will appear in the Folio.
When the guest pays cash for the item purchased in FO ,no posting appears in Folio

Question 13

Charge purchase voucher

Answer 13

It represent deffered payment transaction where guest (buyer) receives goods and services from the Hotel(seller) but does not pay at the time it was provided.
The voucher increases the outstanding balance of the the Folio.
If transaction occur other than Front desk,it must be communicated to Front Desk for proper Folio posting.
In non-automated and semi-automated properties,the communication is normally accompolished by charge voucher or account receivable voucher.
In automated system the concerned department post it in there system.

Question 14

Account correction

Answer 14

An account correction transaction resolves posting error of the Folio.
Correction Voucher is made on the same day the error is made,before the closing of business,i.e,before night audit.
An account correction can either increase or decrease ,depending on the error.

Question 15

Allowance voucher

Answer 15

An account allowance is documented with the help of Allowance Voucher.
Reason for Allowance:
Error detected after Night Audit.
Compensation for poor service.
Discount Coupons

Question 16

Transfer voucher

Answer 16

It involves two different account.
The voucher involves in reduction of balance on the originating folio and increase in balance in destination folio.
Reason for generating Transfer Folio
One guest to another Guest.
One room to another room for same guest
Guest to Non-Guest Account.

Question 17

Cash advance voucher

Answer 17

It is also known as paid out voucher.

It is generated when the Hotel pays on behalf of guest.

Question 18

Types of folio

Answer 18

Guest folio
Non guest folio
Master folio
Employee folio

Question 19

Guest folio

Answer 19

Guest Folio-Account assigned to individual in –house Guest,

Question 20

Non guest folio

Answer 20

Non-Guest Folio-Account assigned to all non guest business and agencies with charge priviledge.

Question 21

Master folio

Answer 21

Master folio-Account assigned to more than one person or guest room ,usually reserved for group.

Question 22

Employee folio

Answer 22

Employee Folio-Account assigned to employee with charge purchase priviledge.

Question 23

______is a process of verifying front office accounting records for accuracy and completeness.

Answer 23

Auditing

Question 24

What is cash bank

Answer 24

Cash Bank-It is a amount of cash assigned to a cashier,so that he or she can handle the various transaction occur during particular shift.

Question 25

Bank limit

Answer 25

It is the amount bank should have in it when it is issued at the beginning of the shift.

Question 26

Net cash receipts

Answer 26

It is amount of cash,checks and other negotiable item in the drawer minus amount of initial cash bank ,plus paid out.

Question 27

What is overage

Answer 27

Overage-When initial bank is removed,the total of cash,check ,negotiable and paid out in the drawer is greater than the net cash receipt.

Question 28

Shortage

Answer 28

Shortage-When initial bank is removed the total of cash,check,negotiable and paid out in the drawer is less than the net cash receipt.

Question 29

Due back

Answer 29

Due-back is when the cashier pays more than he or she receives,in other word ,there is no enough cash in the drawer to restore the intial bank.