© 2007, Educational Institute Chapter 1 Hotel Revenue Accounting Accounting for Hospitality Managers Fifth Edition (362TXT or 362CIN)

© 2007, Educational Institute 1 1.Define revenue centers, identify examples of revenue centers in a hospitality business, and explain their roles in financial reporting. 2.Define revenue accounts, identify examples of revenue accounts for a hospitality business, and explain net revenue and gross profit. 3.Identify what is meant by trade discounts and cash discounts, and explain their relevance to a hospitality business. 4.Describe two methods for recording invoices involving discounts and two procedures for recording cash discounts. Competencies for Hotel Revenue Accounting (continued)

© 2007, Educational Institute 2 5.Explain the common internal control forms and procedures involved in food and beverage sales. 6.Describe the difference between the guest ledger and the city ledger. 7.Identify three front office personnel who report to the accounting department, and describe the roles they play in providing hospitality accounting information. 8.Describe the system used for cash and data collection in a hospitality business. (continued) Competencies for Hotel Revenue Accounting

© 2007, Educational Institute 3 Hotel Income Revenue (Sales) – All expenses = Income

© 2007, Educational Institute 4 Categories of Revenue Centers Three Major Revenue Centers Rooms Food Beverage Ancillary Revenue Centers Telecommunications Garage and parking Golf course Golf pro shop Guest laundry Health center Swimming pool Tennis Tennis pro shop Other operated departments

© 2007, Educational Institute 5 Food Sales Accounts Dining room Coffee shop Banquets Room service (food sales) Lounge (food sales)

© 2007, Educational Institute 6 Beverage Sales Accounts Bar Dining room Banquets Room service (beverage sales)

© 2007, Educational Institute 7 Revenue Accounts Room Sales Room Allowances Food Sales Food Allowances Beverage Sales Beverage Allowances Other Income—F&B Telecommunications Sales Telecommunications Allowances Other accounts for income (interest, dividend, rental, etc.)

© 2007, Educational Institute 8 Internal Control for Food and Beverage Sales Guest checks—manual Guest checks—POS systems Debit and credit cards Guest charges Charged tips