2. Summary Slide zGuest Accounting zGuest Ledger zCity Ledger zSample Aging Statement zAccounting Entries zDiagram–Debits and Credits zAccounting Documentation zGuest Accounting and the Front Desk zExercise Figure 9-1

3. Guest Accounting zGuest accounting is the term used to track debits and credits within the front office. zThe guest ledger tracks accounting activity within the hotel before and during a guest or group stay. zThe city ledger tracks revenues due to the hotel. Figure 9-2

4. Guest Ledger zThe guest ledger is made of accounts that “house” debits and credits. These accounts include: yHouse Account yGuest Account yMaster Account zAt what point does a guest ledger account become a guest history account? Figure 9-3

5. City Ledger zThe revenues tracked by the city ledger are called receivables. zThese revenues are tracked and managed by the accounts receivable group of accounting department. zAn aging statement is used to track the length of time a receivable has remained in the city ledger. Figure 9-4

6. Sample Aging Statement NameCurrent 30 60 90 120 Joe Smith$240 AVD Co. $3000 123 Heat$6500 Jane Doe $250 Bill’s Hair$950 XYZ Inc. $600 Pets R Us $400 K’s Hut$9500 Totals:$10690 $3400 $600$6500 $250 Ave Days Outstanding: 36 Days Figure 9-5

7. Accounting Entries zThis menu uses a series of entries to track activity. These include: yDebit (Has a positive effect on a balance) yCredit (Has a negative effect on a balance) Beginning Balance + Charges - Credits = Ending Balance zOther entries include correction and transfer. Figure 9-6

8. Debits and Credits This is how the accounting menu tallies debits and credits Figure 9-7

9. Accounting Documentation zIn order to conform to uniform system of accounts for the lodging industry (USALI), all accounting entries must be documented. zThe charge and credit slips are used as documentation when the entry has a net effect on the overall guest ledger zThese slips will explain the entry and be signed by appropriate supervisory personnel. They help form the audit trail. Figure 9-8

10. Guest Accounting and the Front Desk zFront desk staff use individual banks to handle daily transactions. zThese banks are audited by the general cashier. zAn in-depth understanding of the guest account is crucial to properly managing the check-in and checkout process. Figure 9-9

11. Accounting Internet Exercise zVisit this Web site: http://www.hotel-accounting.com zThis site contains numerous links and other tools. Once at the site, visit the hospitality and resource links. zThe resource links offer further links to accounting "calculators" that are interesting. zUse these calculators to create a front desk staff schedule or determine the impact tourism has on an area of the country. Figure 9-10