FRONT OFFICE CASH CHECK OUT SETTLEMENT Unit IV

FRONT OFFICE CASH/ CHECK OUT & SETTLEMENT Unit- IV 1

Guest Accounting Cycle Ø To keep track of every exchange , procedures are established in the form of a guest accounting system that is usually built into the hotel’s PMS Ø This is done to account for all transactions and avoid loss of revenue through theft or poor control 2

Methods of payments Ø Ø Ø Ø Cash Foreign exchange City Ledger Credit Card Voucher Traveller’s Cheque Debit Card 3

City Ledger accounts……. Ø Accounts of guests already checked out and have charged their account balances to their company/ employer whom billing privileges have been extended. Ø Normally accounts in this ledger require a credit facility set up prior to arrival at the hotel , so payment is guaranteed and bad debts don’t occur. 4

City Ledger Accounts Ø The outstanding accounts are printed and sent to the company or agent in the form of an invoice usually monthly with payment expected within 21 days of receipt. Ø All guest accounts are required to be signed by guests on check out to indicate their agreement and approval for payment. 5

Credit Card / Debit Card Ø Ø Ø Ø Note the Following for C/C settlement: Check the card holders name on the card. Check the expiry date. Swipe the card on EDC machine. Feed in the amount. Ask the guest to sign the transaction slip. Verify guest signature with signature on the reverse side. Return the transaction slip along with the bill. 6

Vouchers / BTC Ø Ø Ø Ø Ø Things To Remember: Check the Establishment Name. Read the voucher carefully. Refer to the credit list whom hotel offer credit. Check the billing instruction carefully. In case of Foreign Travel agencies voucher get the authorization from Lobby Manager. Collect the signed voucher from the guest. Do not give copy of city ledger to the guest. Send the bill along with VCHR to account. 7

Travellers Cheque Ø Ø Ø Things To Remember: Ensure the sign is put infront of the cashier. Check the guest identity through passport. Calculate the correct exchange value as per the daily rate. Return the balance money to the guest. Send the encashment certificate along with travellers cheque to accounts. 8

Accounting Terminology Ø Allowances: It is an amount deducted from the guest folio for an expense or mistake. This can be of two kinds: 1. Correction of an error committed by the cashier. 2. Hotel is giving discounts to certain guest. Ø Guest allowance is strictly controlled in the hotel. Ø A cashier requires an authorization from competent authority before making allowances. Ø He has to make a allowance voucher duly signed by the FOM or LM. Ø 9

Accounting Terminology Ø Account transfer: Moving an account from one room to other in case of errors committed. Ø In case guest is settling more than one bills the folios are merged into one bill. Ø Late Checkouts: If a guest check out after the scheduled checkout time is called late check out. Ø Late Charges: A charge for the services or facilities utilized by the that reaches to the front desk cashier after the guest bills are prepared. 10

Cashiering Process Greet Guest Departure at the Bell Desk Confirm Guest Details Check Departure Date Late Check Out Late Charges Guest is asked for the feedback Payment is made & Account settled Guest review charges and payment 11

Balancing the accounts Ø Performing balancing procedures with source documents. Ø Tracking errors Ø Over and under Ø Security procedures for cash handling 12

Unpaid Account Balances Ø Unpaid account balances occur because of the following reasons: a. A departing guest honestly forgetting to settle his/her account. b. Late charges (being one of the most important reasons). c. Skippers 13

Unpaid Account Balances Ø In order to minimize late charges, front office clerks shall: a. Post transactional vouchers as soon as they arrive at the front desk. b. Survey front office equipment, voucher and folio racks for non-posted charges before the front office clerk checks a guest out. c. Ask departing guests whether they have incurred any charge purchase or placed long distance telephone calls, which do not appear on their final folio. 14

CHECK-OUT AND BILL STATEMENT FOR GROUPS Ø Ø Ø Ø The tour leader gives the luggage down and checkout time to the reception. Front Office prints out the departure list of the group. Bell boys goes to collect the luggage from the rooms. Front office cashier goes through the pay master and individual bills of the guest. Individual members of the group come to the counter for the settlement. Pay master is given to the tour leader. If it is credit payment he has to be signed, otherwise he pays the bill. 15

CHECK-OUT AND BILL STATEMENT FOR GROUPS Ø Ø Ø On cash payment, mark the folio with ‘PAID’ stamp and put down the cashier’s initials. Generate a ‘receipt’ for the payment Receptionist offers the feedback form to the group and the tour leader. After the checkout of the group the bell boy is allowed to take out the luggage. Receptionist wishes the guest safe journey. The copies of the folios are kept carefully for the further processing by the night auditor. 16

Foreign Currency Handling Ø Ø Ø Ø Guest contact to FO cashier for exchange. Cashier verifies the room no identity of the guest. Cashier ask for the currency for change. He informs the rate of the currency. He prepares the encashment certificate in duplicate. He request the guest to sign. The cashier signs the certificate. He dispenses the amount to the guest along with original certificate. Heritage Institute of Hotel & Tourism 17

Foreign Currency Handling Ø Ø Ø He request the guest to count the cash. In case of traveller’s cheque take a counter sign in front of the guest. Never accept previously counter signed traveller’s cheques. Cashier fills up the RLM. He attaches the foreign cash along with certificate for night auditor. 18

Things to Remember Ø Ø Ø Ø Ø ECR Errand Card Express Check-out Cash Bank ARR Paid Out Cash Receipt Occupancy Ratio Process of Check out Credit Limit and House Limit 19

Bibliography Ø Ø Ø Front Office operation and Management by Ahmed Ismail. Front office Management and Operations by Sudhir Andrews. Front Office Procedures , Social Skills, Yield and Management by Peter Abbot & Sue Lewery. Front Office Management by S. K. Bhatnagar. Hotel front Office Operation and Management by Jatashankkar R. Tewari

Bibliography Ø Ø Ø Ø Ø wwwwikianswers. com www. hotelassociationofindia. com wwhotelsmag. com www. tourism-review. com www. expresshospitality. com www. hotelonline. com www. hospitality school. com www. hotelmarketing. com www. vec. ca