1. Distinguish between Guest Ledger & City Ledger
Refers to the set of guest accounts that correspond to registered guests or guests who have sent advance deposits.
Refers to the set of non guest accounts. For eg., if a guest account is not settled in full on check out the balance is transferred to the accounting division for collection.
Corresponds to registered or guests reserved for future
May or may not account to registered guests
Records all financial transactions of a guest.
Contains Credit card payment accounts, Company accounts, direct billing accounts, accounts of guests stayed earlier due for collection.
Also referred to transient ledger, front office ledger or rooms ledger.
It is also called Non guest ledger.
Maintained at front office
Maintained by accounting division (back office
2. Distinguish between Guest Account & Non guest Account
Non Guest Account
Record of all financial transactions that occur between the guest and the hotel when they guarantee a reservation or they are registered at the Front Office
Refers to all in house charged privileges extended to local businesses or agencies for eg. Banquets & conferencing facilities. These are also created when a former guest fails to settled his bill at the time of departure & the onus to retrieving the balance amount shifts from Front Office to Accounts Dept.
These are compiled on a daily basis.
Billed on a monthly basis.
Front Office is responsible for its maintenance
Bank office or Accounts Dept takes toe responsibility of account settlement.
3. Distinguish between Voucher & Folio
It gives details of a single transaction to be posted at the Front Office. For Eg. A florist or a gift shop might not have provision of posting a particular transaction into a registered guest account. They can send use voucher to notify the FO of guest charge privileges that need posting.
Refers to the statement of all transactions (debits & credits) affecting the balance of a single account. This may include all non guest or guest accounts.
It gives all the information about the transaction gathered at the source of transaction.
This gives details of all the transactions under a particular account. All transactions that increase or decrease the balance.
It can be safely said that the voucher accounts for a single posting.
Whereas a folio lists out all the postings in an account.
Types of Vouchers are cash vouchers, charge vouchers, transfer vouchers, allowance vouchers & paid-out vouchers.
Some of the types of Folios are Guest folios, Master folios, Non-guest or Semi Permanent Folios, Employee Folios, Room folios & Incidental folios.
4. Distinguish between Account Correction & Account Allowance
This is used to resolve a posting error on a folio.
This is used to decrease in a folio balance for purposes such as compensation for poor services or rebates for coupon discounts.
This is utilized to resolve an error that is detected before the night audit.
This is made when an error is detected after the night audit
This may or may not require managerial approval.
This requires managerial consent and should be properly documented.
5. Distinguish between Cash Bank & Net Cash Receipts
Net Cash Receipts
It is an amount of cash assigned to cashier so that he can handle the various cash transactions in shift.
These are the amount of cash, cheques & other negotiable items in the cashiers’s drawer minus the initial cash bank plus advances.
6. Distinguish between Cash Advance & Due Back
It is an amount of cash paid by the cashier on behalf of the guest for some expense such as taxi fare etc.
A Due Back occurs when a cashier pays out more than he or she receives. This can happen when a cashier accepts many checks and large bills during a shift.
7. Distinguish between Floor Limit & House Limit
A floor limit is the maximum amount in the credit card charges the hotel can accept without requesting special authorization from the credit card company on behalf of a credit card holder
A House limit on the other hand a property’s internal limitations established by the front office. This is the maximum limit on the amount, which the guests can charge to their accounts without partial settlement.
8. Distinguish between Upselling & Upgrading
Upselling refers to the efforts of reservations & the front desk agents to be able to sell a higher priced room to a guest who might have come with a concept of hiring a comparatively lower category room.
Upgrading on the other hand refers to moving a reservation or in house guest to a better accommodation or a class of service owing to his status / prestige or in a bid to make up for any error made by the hotel.
Upselling leads to revenue generation for the hotel.
There is no revenue generation for the hotel on upgradation.
Upselling requires skills like salesmanship & good communications
Upgrading doesn’t require such skills