Memorandum----STANDARD OPERATING PROCEDURE on front office systems-1

Subject --Front office system-mode of payment--

DATE –

DISTRIBUTION ---General Manager, Financial controller, Front Office Manager,IT –Manager,Reservation s Manager Director General Accounts,Chief Accountant Accounts department and all department heads

Mode of payments---objectives –when the guest checks in and until he checks out room folio is raised and all the charges are collected from the guest in accordance with the rates Charged as per the tariff set by the hotel management the policy is the implementation of the reservations, cashiering, foreign currency transaction and Pos charge transaction The policy is to have a audit system day and night to ensure is not dissatisfied disgruntled with the hotel billing

Type of Mode of payments –the main types of Mode of payment are cash, credit card city ledger and Remittance to Bank Accounts

Posting the system the designated cashier posts all charges such as room revenue, restaurant charges , revenue from utilities-laundry telephones ec

Guest ledger – the guest ledger balances are the daily carried forward amounts payable byThe guest whose folios are in the ledger

POS posting –Point of sale posting is the credit charges from the outlets to the guest ledger, in this process, the cashier would post all the charge posting of the POS-checksIe the Restaurant bills signed by the room guest, would be posted by the Restaurant cashier after verifying the guest name with the bill the guest has signed, and the room Number in which the guests stay. In case there is a discrepancy that the room number or the name does not match to the Room Number , than the cashier would inform the restaurant Manager of the discrepancy, to settle the bill ,thus the cashier verifies the guest noted in the restaurant before he posts the charge to the guest ledger.

Check in –where the guests are checked in from the reservations system Check out when the guest is checked out from guest upon complete check out from the System

Procedures of a checkout -- The system applies that when the guest checks out He has to settle his bills at the options he makes the reservation with the company

Usually if it is a corporate guest –he is credit rated by the company and upon the terms the sales department which has set out his credit and his account is transferred to the accounts receivable city ledger

In case of credit card, as a mode of payment normally a credit card approval is secured on his making the reservation Travel voucher –in case of a travel voucher the voucher should be accepted by the company

Reservation Reference: In case of check outs all the check out bills will have the reservation reference with the check out bills , the income auditor would check all these check out bills with regards to day and date of check In and check out, terms and mode of payment instructions , credit card numbers and bank remittance deposit reference and most important the if the city ledger account , the accounts receivable code number ,the letter of confirmation of credit terms of payment from the corporate companies ,

Check out time –at 12.noon

Late charges –Incase the guest over stays the check out time, than there is late charges payable by the guest, these charges are to be collected by the front office from the cashier, and would be an add on to the room charges ,

Extended stay : In case the guest wishes to stay for more days than the check out date and if the hotel agrees than his stay would be EXTENDED STAY, amending the date of departure in the reservations made earlier

Day Use : In case the hotel management agrees for any guest use the room for a part of the day , may be in the morning or in the evening and he checks out before the NIGHT AUDIT option DAY END CLOSE than this room is Day Use Room. System Error: if any system Error pops up the same should be reported to the IT department for repair and rectification of the error, normally in a multi user system the error restricts to only a particular user, however if affects all the USERS than the computer should be set down till the IT –Department sets off the error, Printing errors are also common .In extraordinary circumstances when there is system failure for considerable period of time , than manual cashering system should be adopted till the system is retrieved with due apologies to the guest .As the system have strong back up-set to an auto back the entries are recovered and the system rolls back to normal operations USER CODES; The system is set to a hierarchy of code of operations, where the levels of usage is according to rights of the users , the system has a Department head code userA supervisory code user and a staff code user, the rights of these code users are well defined

Cash – in case cash is collected from guest it may be the local currency or foreign currency

The check in out bills are verified by the cashier with payment modes , in case of credit card the cashier would verify whether the credit card number is secured from the guestIn case of city ledger the cashier would verify whether the company’s authorization is secured and in case of cash any advances or bank deposit to the company account is secured

The cashier is in charge at the time of duty is notified by the guest of his checking out of The room, the guest walks to the cashier and asks for his bill details in case the guests Have any doubts he would clarify with the cashier and in case the cashier has any doubt on the bill he would immediately check with his superior and checks out the bill

The cashier would ensure upon check out the bills are settled and is set off to the night auditor for checking and verification

Formation of mode of payments City ledger –to be checked out from the guest ledger , the folio is secured with the

reservation reference and the letter of authorization of the company

Cash payments –are secured with the currency and is tallied with the cash float as par cash, check with any cash advance deposit

Credit card payments with the credit card approvals listing

Payment directly to bank account number to check with the bank Whether the amount paid by the guest has been transferred

The cashier reports are generated shift wise and posting are tallied, receipts are accounted and cash is deposited by the cashier with witnesses into cash post safe

The IT department would create the levels of the password user in the system, supervisor codes are generally would option the use of the system in all aspects of cashiering, reservations, Mode of payments etcHow ever the IT-Department would ensure that the passwords are accessed to all cashiers for the cashier transactions such for cash settlement , city ledger settlements , and credit card settlements

Direct deposit to bank by guest settlements

Accounting codes –In case of city ledger accounting codes have to opened for all new accounts with the approval of the financial controller

Filing –at the end of the shift cashiers , would file all documents for future refernces

Approved by Issued By

General Manager Financial Controller S.Jayakumar

FC, 06/12/07,