1. © 2009, Educational Institute Chapter 8 Front Office Accounting Managing Front Office Operations Eighth Edition (333TXT or 333CIN)

2. © 2009, Educational Institute 1 Competencies for Front Office Accounting 1.Summarize front office accounting fundamentals, including issues surrounding accounts, folios, vouchers, points of sale, and ledgers. 2.Describe the process of creating and maintaining front office accounts. 3.Describe typical procedures for processing and tracking common front office accounting transactions. 4.Describe internal control procedures for front office operations and explain typical settlement procedures.

3. © 2009, Educational Institute 2 Front Office Accounting Fundamentals Create/maintain accurate account files Track financial transactions Ensure internal control Record settlement Accounts Folios Vouchers Point-of-sale systems Ledgers

4. © 2009, Educational Institute 3 Types of Folios Guest folios Master folios Non-guest folios Employee folios Special request folios (split folios, for example)

5. © 2009, Educational Institute 4 Guest/City Ledgers Guest ledger: Accounts of registered guests Accounts of advance deposits from future guests (credit balance) Front office collects City ledger (non-guest ledger): Guest ledgers not paid in full at check out Accounting department collects

6. © 2009, Educational Institute 5 Front Office Accounting Formula Previous Balance + Debits – Credits = Net Outstanding Balance

7. © 2009, Educational Institute 6 Front Office Transactions Cash payment Charge purchase Account correction Account allowance Account transfer Cash advance

8. © 2009, Educational Institute 7 Internal Control Functions Track transaction documents Verify account entries and balances Identify vulnerabilities in the accounting system

9. © 2009, Educational Institute 8 Cash Banks Bank limit Net cash receipts Overage/shortage Due back