Hotel Magement

HOTEL ACCOUNTING PROCEDURES

 What is Hotel Accounting
• The main business of a hotel is to provide food and accommodation (i.e.,
shelter). But there are some big hotels who provide other comforts,
recreations, entertainments, business facilities etc. Naturally, the scheme
of accounting will depend on the nature and size of a hotel and its
requirement although the principle of accounting will be the same.
• An Analytical Purchase Book and a Cash Book (Payment side) may be
maintained for recording purchase and expenses with different columns
for:
• Wines and Minerals,
• Groceries and Provisions,
• Cutlery, Glass, Plate etc.,
• Bedding and Linens,
• Establishments,
• Furniture and Fixtures etc.
Room Rate
 A five-star hotel has 660 rooms in all, out of which 52 rooms are used
for operational purposes and 8 rooms are used by the departmental
managers.
If 480 rooms are occupied by the guests on any day, calculate the room
occupancy rate.

• Room occupancy rate= Rooms occupied/Rooms

Available
• 480/600 (660-52-8) = 80%
A five-star hotel in Chennai has 320 lettable rooms on a particular day. 240 rooms are occupied by 300 guests. Calculate
Double Occupancy Rate.
 Visitors Tabular Ledger
• V.T.L is one of the important ledger maintained by front
office cashier in order to keep the record of all the
transaction of the guest during his/her stay in the hotel.
V.T.L is generally made for each guest who check-in to
the hotel and use the hotel facilities. This sheet is
prepared on daily basis by front office cashier. After the
completion of billing procedure, each day transaction is
carried out by a night auditors. The account of guest is
calculated and carried down in a new ledger for the
next date which is usually closes when the guest
checkout from the hotel.
Format
 Importance and purpose of V.T.L :
• It shows the total sales of each outlet in a hotel.
• It shows the over all sales of hotel in a particular
day.
• It shows the types of service used by the guest.
• It shows the cash deposit made by the guest and
also the credit balance.
• It shows the cash paid by the guest during their stay
and also the discount offered to them.
• It shows the total transaction of a particular guest in
a particular day.
 Posting procedure of V.T.L

• Always use capital or block letter and use ink or ball pen
for writing the name of the guest.
• Details about the guest information should be written after
the registration of the guest such as tax, plan , tariff, etc.
• Use dashes where there is no transaction or figure.
• All the transactions should be entered as per the bills or
voucher sent by the outlets.
• Enter total amount in the respective debit and credit
column.
• Guest charges for different service are written in the
respective columns as per the heading.
• Cash advance or deposit made by the guest is written in the guest account under
cash deposit column.
• Guest amount or charges are written under the column "city ledger", if the
guest do not settle bills during check-out. Generally these types of guests are
from company or travel agency.
• If the guests amount is paid by other party or guest, the amount is written under
transfer column, which includes debit and credit.
• Calculate the sub-total from all the charges under individual after adding the tax
and vat.
• Grand total is carried out after adding or reducing from balance brought forward
in the daily total.
• In allowance column, amount are written for those guest who are provided
amount from the hotel.
• Last balance column in the V.T.L under the column balance b/d or c/d and
respective debit and credit column.
 GUEST WEEKLY BILL
• IT IS PREPARED FOR EACH GUEST AND IS
PRESENTED ON CHECK OUT FOR SETTELMENT.
IT IS CALLED A WEEKLEY BILL AS FOR ONE
WEEK ONE BILL IS PREPARED
Guest weekly bill
 ADVANTGES OF GUEST
WEEKLY BILL
• EASY TO UNDERSTAND AND OPRATE
• ECONOMICAL
• THE SAME BILL CAN BE USED FOR ONE WEEK
AND AN OTHER BILL IS STAPLED ONLY IF
GUEST STAYS BEYOND ONE WEEK
• GUEST WEEKLY BILL HAS DEBIT AND CREDIT
COLUMNS AND ALL THE VOUCHERS CAN BE
POSTED IMIDIATELY ON RECEIVING
 Guest Allowances
• This is used to decrease in a folio balance for
purposes such as compensation for poor
services or rebates for coupon discounts.
• This is made when an error is detected after
the night audit
• This requires managerial consent and should
be properly documented.
 Visitors Paid Out
• Paid outs are expenses made by the hotel on
behalf of the guest and the same is later
charged to the Guest room account
or Invoice .Eg:- Doctor fees paid , Medicines
purchased , Cash against Credit card , Stamp /
Postal charges etc.
Paid Out Voucher
 Visitors Paid Out
• While posting a paid out to the guest account or folio a
receipt is printed / generated with a unique serial
number in duplicate. One copy is handed over to the
guest and the second copy is kept on front office or
send to accounts.
• As this process involves withdrawal of cash from the
front office staff can sometime misuse with paid out. To
avoid this usually the staff / Front office assistant’
should get authorisation from the Duty manager or
Front office manager on each paid out which they
generate.