Front Office Accounting Flashcards
Front office accounting system
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.
What is an account
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.
Types of account?
Guest account n non guest account
Non - guest account
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.
Guest account
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.
Define charge privilege
When guest uses services of the hotel and pays later
Define house limit
House-Limit-The credit limit given by hotel to the guest
Floor limit
-The credit limit given by credit card companies to the customer.
Define guest ledger
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.
Non guest ledger
Non –Guest Ledger-The collection of all non-Guest account including unsettled departed guest account.
What are the different types of vouchers
Cash voucher Charge purchase voucher Account correction Allowance voucher Transfer voucher Cash advance voucher
Cash voucher
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
Charge purchase voucher
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.
Account correction
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.
Allowance voucher
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
Transfer voucher
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.
Cash advance voucher
It is also known as paid out voucher.
It is generated when the Hotel pays on behalf of guest.
Types of folio
Guest folio
Non guest folio
Master folio
Employee folio
Guest folio
Guest Folio-Account assigned to individual in –house Guest,
Non guest folio
Non-Guest Folio-Account assigned to all non guest business and agencies with charge priviledge.
Master folio
Master folio-Account assigned to more than one person or guest room ,usually reserved for group.
Employee folio
Employee Folio-Account assigned to employee with charge purchase priviledge.
______is a process of verifying front office accounting records for accuracy and completeness.
Auditing
What is cash bank
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.
Bank limit
It is the amount bank should have in it when it is issued at the beginning of the shift.
Net cash receipts
It is amount of cash,checks and other negotiable item in the drawer minus amount of initial cash bank ,plus paid out.
What is overage
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.
Shortage
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.
Due back
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.
