Summary Slide

Guest Accounting Guest Ledger City Ledger Sample Aging Statement Accounting Entries DiagramDebits and Credits Accounting Documentation Guest Accounting and the Front Desk Exercise
Figure 9-1

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

Guest Ledger
The guest ledger is made of accounts that house debits and credits. These accounts include:
House Account Guest Account Master Account

At what point does a guest ledger account become a guest history account?
Figure 9-3

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

Figure 9-5

Sample Aging Statement

Name
Joe Smith AVD Co. 123 Heat Jane Doe Bills Hair XYZ Inc. Pets R Us Ks Hut

Current
$240

30
$3000

60

90

120

$6500

$250
$950 $600 $400

$9500
$6500 $250

Totals: $10690 $3400 $600 Ave Days Outstanding: 36 Days

Accounting Entries
This menu uses a series of entries to track activity. These include:
Debit (Has a positive effect on a balance) Credit (Has a negative effect on a balance)
Beginning Balance + Charges - Credits = Ending Balance

Other entries include correction and transfer.

Figure 9-6

Debits and Credits

This is how the accounting menu tallies debits and credits

Figure 9-7

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

Guest Accounting and the Front Desk

Front desk staff use individual banks to handle daily transactions. These banks are audited by the general cashier. An in-depth understanding of the guest account is crucial to properly managing the check-in and checkout process.
Figure 9-9

Accounting Internet Exercise

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