ICBT [Front Office Services]by: Sir Raymond G.

Trinidad

Unit 3: Evaluating Front Office Financial Activities

At the end of this unit, you should:

 Identify the steps in conducting night audit.

 Enumerate the methods in preparing guest folio.
 Explain the steps in collecting cash, cash equivalents or non-cash transactions.
 Describe the appropriate method in processing receipts and payments.
 Identify the steps in reconciling financial transactions at the end of the shift.

Topic 1: Processing Internal Financial Transactions

1. Double check transactions to ensure that they have posted in the property’s computerized system.
Transactions may include:

 Food and beverage.

 Mini-bar
 Laundry and other services.
 Inter-department vouchers.

Double check and validate transactions and charges. -  The night auditor will validate transactions by checking
the code of numbering system of an item on a guest account. To validate the record, the night auditor may take
a representative sample of guest accounts and individually check them for accuracy of charges. To ensure only
legitimate charges are posted, a transaction code identification and a docket or reference number or code will be
provided to all charges made through the hotel’s system.

2.    Identify and reconcile financial and system discrepancies. Discrepancies may include:

 Incorrect posting

ICBT | Home Economics 1

 ICBT [Front Office Services]by: Sir Raymond G. Trinidad

 Errors in guest folios

 Computer errors
 System glitches.
 Interface errors between systems.
 Errors in source documentation

Common discrepancies are:

1.    Guest name does not match to the room given. How to resolve?

o If the guest is not a registered guest - they will be asked to pay for all services, they
received.
o Check any room changes at the front office or reception desk.

2.    Incorrect prices have been posted.How to resolve?

o To process correction, remove the total charges from the account.

o If the quantity is incorrect and the amount has been entered correctly change the total
charge for an item.

Note: Only staff with supervisory status can complete these processes.

Financial systems are:

 Petty cash
 Floats
 Debtor control
 Cashiering
 Banking procedures

3.    Verify and reconcile room rates and room status. There is discrepancy when a room is shown as
occupied on the status report, but there is no data in the guest file. Reasons for this discrepancy may include:

 Incorrect room number has been written.

 Guest information has been misfiled.
 Guest has been transferred to another room.

4.    Suggests internal financial system and control for improvements in the property’s operation.

ICBT | Home Economics 2

 ICBT [Front Office Services]by: Sir Raymond G. Trinidad

Topic 2: Completing Routine Records and Reports

1. Accurately complete routine records and reports. Examples of records and reports are:

 Room rates
 Occupancy
 Arrivals and departures
 Sales performance
 Breakdown of department
 Commission earnings
 Supplier activity
 Sales return
 Commercial account activity
 Foreign currency activities

2. Forward reports promptly to the appropriate person/department. Distributing reports in a timely manner

is important because it helps the management to set plans for operational activities, set new targets and plan
promotional activities.

Topic 1: Preparing Guest Folio

All guest charges and payments are recorded to the guest accounts by using the guest folio. In a non-automated
operation, guest folios are stored in a front office folio tray arranged by number.

1. Unposted or late charges are checked with other departments. All unposted or late charges are posted in the
property’s computerized system.
2. Print guest folio. Printing the guest folio is also available in a CRS. To complete this action, you need to configure
‘Folio Printing Task’. To configure look for a ‘Configuration Tab’. Under the configuration tab click ‘Cashiering’
and select ‘Folio Print Task’.
3. Present guest folio to guest for review and approval.

ICBT | Home Economics 3

 ICBT [Front Office Services]by: Sir Raymond G. Trinidad

Topic 2: Collecting Cash, Cash Equivalents or Non-cash

Transactions

Always ask the guest about his/her preferred method of payment. For example: “Mr. Rothe do you still want to
pay with your VISA card?” Then, proceed to the steps below in handling cash at the front desk:

1. Accept and count cash in front of the customer. Guests may intentionally try to confuse you during
financial transactions. To avoid confusion on how much cash was received, place bills lengthwise across
the register until the end of the transaction.
2. Process credit cards or debit cards. Ask the guest for a copy of the credit card to process the payment.
Do not honor cut or damaged cards.
3. Process payment through accepted foreign currency. If your hotel does not offer this kind of service,
make sure to direct guest to the nearest bank or foreign exchange bureau. Below, are the common
procedures and guidelines:

 Know which currencies your property will exchange.

 Confirm exchange rate (cash, travelers check)
 Inform your guest what the hotel exchange rate is.
 Collect foreign currency from guest.
 Give correct amount of cash.

4. Process travelers check. Get the guest signature on the check and record the amount and the check order
number on the guest folio.
ICBT | Home Economics 4
 ICBT [Front Office Services]by: Sir Raymond G. Trinidad

5. Process other billing settlement. Other billing settlement may include:

 Mini bar payments

Topic 3: Processing Receipts and Payments

Always remember that a receipt is issued after a payment has been made. Print a guest folio/account when a
guest checks out and give to the guest. Guest folios are usually in duplicate, so the cashier has a copy. Here are
the three important steps in processing receipts and payments:

1. Process accurately cash, cash equivalents or non-cash transactions received from guest.
2. Issue and present correctly receipts to guest.
3. Record transactions to guest account in the computerized system.

Topic 4: Reconciling Financial Transactions at the End of the Shift

1. Perform balancing of cash float. As a staff member you need to assure that the total amount in the float is
accurate with the actual amount in the cash drawer. It is a common practice to count the float before signing for
it.

2. Segregate and accurate count cash, cash equivalents and non-cash documents. Notes and coins are
always counted first, followed by non-cash transactions and then by all other transactions. Examples of non-
cash documents are:

 Vouchers
 Posting charges
 Other financial transactions.

Same type non-cash transactions are added together, and the total are entered into the appropriate space on the
summary sheet. Double check the information as you complete reconciliation. For example:

 Check appropriate authorization on all bank card transactions such as, signatures and valid dates.
 Personal checks are reviewed.

ICBT | Home Economics 5

 ICBT [Front Office Services]by: Sir Raymond G. Trinidad

 Documentation for payment account is complete.

3. Balance of computerized system and sum of cash and non-cash transactions are accurately determined,
tallied and balanced. To balance, add the total of each group of cash and non-cash transactions on the cash
summary sheet to arrive at individual balances. To arrive an overall total for the register or terminal add all the
individual balances.

4. Project and process transactions.

5. Close cashier’s accounts properly.

6. File and store properly source documents.

ICBT | Home Economics 6