Wednesday, August 4, 2010
Tuesday, August 3, 2010
FINANCE RELATED FRONT OFFICE NORMS
Exchange rates to be charged:
Where US Dollar tariff bills are settled in Indian Rupees, the rate of conversion applicable will be as on date of departure.
Documentation for Guests holding diplomatic passport/ Resident foreigner
All such guests would have to produce relevant documents to support their identity. A photocopy of such documents should be attached along with the accounts copy of the registration form.
· A resident foreigner would have to produce a Certificate of Registration.
· For a Diplomat, a photocopy of his passport to be taken. Aphotocopy of the Official Diplomatic Identity Card could also serve the Purpose. They are exempted from expenditure tax only. Certain Diplomats working for the Government of India would have a waiver on the luxury tax also. In such cases they should produce documents to support their claim and photocopies to be attached with the registration card.
Credit policies: Company/Travel Agent/ Airlines/Honoring PSO (Passenger Service Order) vouchers
Only companies approved credit list (form the Accounts Department) would be entitled for their guest bills to be sent to the company. This would also apply for Travel Agents, Airlines and PSO vouchers. In case there is a request from a company not on the list, then the approval of the Chief Accountant is necessary on the written document , which has to be obtained from the company.
Ina situation where by a regular guest (known to the hotel) falls short on payment (through a credit card or cash) on check out, at the FOE’s discretion the balance can be transferred to city ledger and billed to the address given. Proper narration to be mentioned along with the folio so that the credit department can follow-up, but the liability would rest in the FOE who authorizes this credit. (Such balances not to exceed more than Rs.5,000/-)
Requirements for bills to be sent to a company, on the credit list
Only company’s on the approved credit list would enjoy credit facilities.
A letter on the company letterhead would be a prerequisite for bills to be sent to the company. The letter should clearly mention the guest entitlements , the address and the concerned department/authorized person where the bills have to be sent.
There would be companies who give bookings on a very regular basis and they might find it difficult to send billing letters for every booking. In such a case the hotel should have an initial letter stating the above difficulty along with the rekevant details, on the forwarding address, entitlements and the concerned department/authorized person so that this would facilitate smooth recovery. This letter should also accept the liability for payments of guests, whose stays have been booked telephonically.
In case a guest wants to extend his stay and billing reads as entire bill to company or part of the bill goes to the company a fresh billing letter has to be followed up from the company.
Non credit list company cheque payments
There would be requests from non-credit list companies for settling their guest bills. Ideally these companies would have to make a complete settlement before their guest checks out. This would initially be in the form of an advance, which would cover the expected expenses of the entire stay. In case the payment is made by a cheque, then it has to be made well in advance so that the mony is realized before the guest checks-in. All the balances should be collected prior to checkout. This has to be made very clear in the letter of confirmation to the company.
Signature on file
The hotel policy does not permit settling of guest bills by this method. In case there is a situation where-in the guest insists to settle through this method, then the Chief Accountant needs to be informed immediately.
Establishment of Credit
On check-in, an appropriate authorization is to be taken so that it covers the entire stay along with the incidentals. In case there is an extention of stay or any abnormal expenditure, then further approvals to be taken.
High balance reports
The limit would be fixed for individual guest considering the length of stay and the authorization received. The High Balance Report should be checked every day by the FOE and followed up for further authorization/deposits as the case may be.
Long stay guest bills
Long stay bills to be closed on a weekly basis preferably on a Friday (it is understood that an appropriate authorization has already been taken). In case if the billing is to the company then the guest would have time till Sunday to review his bills. On obtaining his/her signature the bills to be forwarded to the Credit Department for processing. Such bills will feature on the High Balance Reports but will be actioned as above.
Paid Outs
This would include making payments on behalf of a guest to a maximum limit of Rs.1,000/-. A complete narration has to be made and the signature of the guest must be obtained immediately. Paid outs summary must be countersigned by the Front Office Executive at the end of each shift.
Cash Advance against Credit Cards.
No cash advances will be allowed against the guest credit card under any circumstances except in case of an emergency and when it is authorized by general
Manager or the Chief Accountant. In such exceptional cases there will be 5% service
Charge levied for each transaction.
IOU
No IOU to be disbursed from the Front Desk.
Advances
No advances to be disbursed from the Front office. The emergency payments, after Accounts office hours, to be made on a petty cash voucher.
Petty Cash
No petty cash vouchers to be settled during the normal working hours (0900hrs-1800hrs) from the Front Desk. Petty cash vouchers shall be treated as cash and can be exchanged with the general cashier.
Miscellaneous charges
These would basically be charges for miscellaneous services such as baby sitting , arranging for a flower boquet among others. A Miscellaneous voucher with the relevant details to be raised.
Credit card tips (on check out) - Front Desk
On the date set by the accounts department, every month, tips collected through credit cards (on check out) can be collected from the accounts department.
FOA shift wise balancing of accounts:
All FOAs handling cash to take into account,recipts.paid outs, foredin exchange transactions, petty cash vouchers, advance received and credit card settlements while balancing their shift accounts. The float amount to be maintained at the maximum level while concluding a shift. The entire proceeds to be counted in front of thr foe, put in an an envelop and sealed with the countersignature of the FOE/AFOM on the flap and dropped in the safe.
Aregister, “Daily Collection General Cashier book”, is maintained at the backoffice. This records all envelops dropped into safe. Front Office Executive and a Security guard countersigns against every entry in the register.
While concluding a morning shift, the float amount falls short to the maximum level due to FOREX exchanged then the relevant amount to be taken from the General cashier. In the event there is a decrease in the float level, during an afternoon and night shift, the said amount is topped up by the General Cashier in the morning.
Shortages:
Under no circumstances would shortages be accepted while balancing shift accounts. The FOA handling cash is solely responsible for these shortages. In case the shortage exist, the FOE or AFOM to be immediately informed. The amount to be reinstated by the concerned FOA before handing over charge.
Foreign exchange transactions:
It is a statutory requirement that every Forex transaction has to have an exchange certificate as a support document. Serial numbers of exchanged currency notes to be recorded on the reverse of the Accounts copy of the certificate. This facility of exchange to be rendered to in-house guests only. A reconciled statement, as per format, to be made for every shift by the FOE. Foreign currency will not be soled across the counter to guests.
While exchanging a TC it is important that the countersign is done in the presence of the FOA and that it tallies with the original signature. If there exists doubt on the countersign, the guest needs his signature.
Availability of small change money
It should be ensured that ample of change is available at the front Desk. This would be part of the briefing before commencing a shift.
Allowances
Every allowance/credit, accorded to a guest for, reasons, which are justified, has to be accounted for. A proper voucher to be raised with a clear narration stating the reasons for crediting the bill.
Room only complimentary
Whenever a room is being given on a complimentary basis the room tariff to be brought to zero. Only extras are to be accounted for and collected on checkout. On departure a note to go along with the folio stating under whose reference the room was complemented.
In the case of an entire house use, relevant executives/departments to be informed on the special instructions.
Barter Arrangement
All barter deals need to have the GM’s approval. Bills have to be raised on rack rates wherever such an arrangement exists. The Accounts Department to be informed on such stays.
Discounts to be offered at the Front Desk
For walk-in’s, an FOA can offer discounts to the tune of USD 150 INR 5,000/- + taxes. Incase there is a situation wherein a further discounts has to be offered, then the FOE has to be involved, who can take an appropriate decision (this would depend on the prevailing occupancy and future availability)
Late charge on a guest credit card
All charges to be routed through the Accounts department. A copy of the bill folio to be sent to the guest on his/her forwarding address.
Float amount
Rs. 30,000/- at the Front Desk
Rs. 50,000/- is being kept with the Chief Accountant as an extension of the Front Office Float. On Saturday the FOA obtains RS. 25,000/- form the CA to handle the extra pressure of forex transactions which would happen on Sunday.
Incorporating the daily fluctuations in the foreign exchangeA copy of the revised foreign exchange conversion rated would come to the hotel daily. The FOE on shift is responsible to ensure that the rates on the display board and on the system are changed accordingly. Emphasis has to be laid on the footnote of the document, which will contain information on any particular aspect to be considered which exchanging Foreign Exchange.
Where US Dollar tariff bills are settled in Indian Rupees, the rate of conversion applicable will be as on date of departure.
Documentation for Guests holding diplomatic passport/ Resident foreigner
All such guests would have to produce relevant documents to support their identity. A photocopy of such documents should be attached along with the accounts copy of the registration form.
· A resident foreigner would have to produce a Certificate of Registration.
· For a Diplomat, a photocopy of his passport to be taken. Aphotocopy of the Official Diplomatic Identity Card could also serve the Purpose. They are exempted from expenditure tax only. Certain Diplomats working for the Government of India would have a waiver on the luxury tax also. In such cases they should produce documents to support their claim and photocopies to be attached with the registration card.
Credit policies: Company/Travel Agent/ Airlines/Honoring PSO (Passenger Service Order) vouchers
Only companies approved credit list (form the Accounts Department) would be entitled for their guest bills to be sent to the company. This would also apply for Travel Agents, Airlines and PSO vouchers. In case there is a request from a company not on the list, then the approval of the Chief Accountant is necessary on the written document , which has to be obtained from the company.
Ina situation where by a regular guest (known to the hotel) falls short on payment (through a credit card or cash) on check out, at the FOE’s discretion the balance can be transferred to city ledger and billed to the address given. Proper narration to be mentioned along with the folio so that the credit department can follow-up, but the liability would rest in the FOE who authorizes this credit. (Such balances not to exceed more than Rs.5,000/-)
Requirements for bills to be sent to a company, on the credit list
Only company’s on the approved credit list would enjoy credit facilities.
A letter on the company letterhead would be a prerequisite for bills to be sent to the company. The letter should clearly mention the guest entitlements , the address and the concerned department/authorized person where the bills have to be sent.
There would be companies who give bookings on a very regular basis and they might find it difficult to send billing letters for every booking. In such a case the hotel should have an initial letter stating the above difficulty along with the rekevant details, on the forwarding address, entitlements and the concerned department/authorized person so that this would facilitate smooth recovery. This letter should also accept the liability for payments of guests, whose stays have been booked telephonically.
In case a guest wants to extend his stay and billing reads as entire bill to company or part of the bill goes to the company a fresh billing letter has to be followed up from the company.
Non credit list company cheque payments
There would be requests from non-credit list companies for settling their guest bills. Ideally these companies would have to make a complete settlement before their guest checks out. This would initially be in the form of an advance, which would cover the expected expenses of the entire stay. In case the payment is made by a cheque, then it has to be made well in advance so that the mony is realized before the guest checks-in. All the balances should be collected prior to checkout. This has to be made very clear in the letter of confirmation to the company.
Signature on file
The hotel policy does not permit settling of guest bills by this method. In case there is a situation where-in the guest insists to settle through this method, then the Chief Accountant needs to be informed immediately.
Establishment of Credit
On check-in, an appropriate authorization is to be taken so that it covers the entire stay along with the incidentals. In case there is an extention of stay or any abnormal expenditure, then further approvals to be taken.
High balance reports
The limit would be fixed for individual guest considering the length of stay and the authorization received. The High Balance Report should be checked every day by the FOE and followed up for further authorization/deposits as the case may be.
Long stay guest bills
Long stay bills to be closed on a weekly basis preferably on a Friday (it is understood that an appropriate authorization has already been taken). In case if the billing is to the company then the guest would have time till Sunday to review his bills. On obtaining his/her signature the bills to be forwarded to the Credit Department for processing. Such bills will feature on the High Balance Reports but will be actioned as above.
Paid Outs
This would include making payments on behalf of a guest to a maximum limit of Rs.1,000/-. A complete narration has to be made and the signature of the guest must be obtained immediately. Paid outs summary must be countersigned by the Front Office Executive at the end of each shift.
Cash Advance against Credit Cards.
No cash advances will be allowed against the guest credit card under any circumstances except in case of an emergency and when it is authorized by general
Manager or the Chief Accountant. In such exceptional cases there will be 5% service
Charge levied for each transaction.
IOU
No IOU to be disbursed from the Front Desk.
Advances
No advances to be disbursed from the Front office. The emergency payments, after Accounts office hours, to be made on a petty cash voucher.
Petty Cash
No petty cash vouchers to be settled during the normal working hours (0900hrs-1800hrs) from the Front Desk. Petty cash vouchers shall be treated as cash and can be exchanged with the general cashier.
Miscellaneous charges
These would basically be charges for miscellaneous services such as baby sitting , arranging for a flower boquet among others. A Miscellaneous voucher with the relevant details to be raised.
Credit card tips (on check out) - Front Desk
On the date set by the accounts department, every month, tips collected through credit cards (on check out) can be collected from the accounts department.
FOA shift wise balancing of accounts:
All FOAs handling cash to take into account,recipts.paid outs, foredin exchange transactions, petty cash vouchers, advance received and credit card settlements while balancing their shift accounts. The float amount to be maintained at the maximum level while concluding a shift. The entire proceeds to be counted in front of thr foe, put in an an envelop and sealed with the countersignature of the FOE/AFOM on the flap and dropped in the safe.
Aregister, “Daily Collection General Cashier book”, is maintained at the backoffice. This records all envelops dropped into safe. Front Office Executive and a Security guard countersigns against every entry in the register.
While concluding a morning shift, the float amount falls short to the maximum level due to FOREX exchanged then the relevant amount to be taken from the General cashier. In the event there is a decrease in the float level, during an afternoon and night shift, the said amount is topped up by the General Cashier in the morning.
Shortages:
Under no circumstances would shortages be accepted while balancing shift accounts. The FOA handling cash is solely responsible for these shortages. In case the shortage exist, the FOE or AFOM to be immediately informed. The amount to be reinstated by the concerned FOA before handing over charge.
Foreign exchange transactions:
It is a statutory requirement that every Forex transaction has to have an exchange certificate as a support document. Serial numbers of exchanged currency notes to be recorded on the reverse of the Accounts copy of the certificate. This facility of exchange to be rendered to in-house guests only. A reconciled statement, as per format, to be made for every shift by the FOE. Foreign currency will not be soled across the counter to guests.
While exchanging a TC it is important that the countersign is done in the presence of the FOA and that it tallies with the original signature. If there exists doubt on the countersign, the guest needs his signature.
Availability of small change money
It should be ensured that ample of change is available at the front Desk. This would be part of the briefing before commencing a shift.
Allowances
Every allowance/credit, accorded to a guest for, reasons, which are justified, has to be accounted for. A proper voucher to be raised with a clear narration stating the reasons for crediting the bill.
Room only complimentary
Whenever a room is being given on a complimentary basis the room tariff to be brought to zero. Only extras are to be accounted for and collected on checkout. On departure a note to go along with the folio stating under whose reference the room was complemented.
In the case of an entire house use, relevant executives/departments to be informed on the special instructions.
Barter Arrangement
All barter deals need to have the GM’s approval. Bills have to be raised on rack rates wherever such an arrangement exists. The Accounts Department to be informed on such stays.
Discounts to be offered at the Front Desk
For walk-in’s, an FOA can offer discounts to the tune of USD 150 INR 5,000/- + taxes. Incase there is a situation wherein a further discounts has to be offered, then the FOE has to be involved, who can take an appropriate decision (this would depend on the prevailing occupancy and future availability)
Late charge on a guest credit card
All charges to be routed through the Accounts department. A copy of the bill folio to be sent to the guest on his/her forwarding address.
Float amount
Rs. 30,000/- at the Front Desk
Rs. 50,000/- is being kept with the Chief Accountant as an extension of the Front Office Float. On Saturday the FOA obtains RS. 25,000/- form the CA to handle the extra pressure of forex transactions which would happen on Sunday.
Incorporating the daily fluctuations in the foreign exchangeA copy of the revised foreign exchange conversion rated would come to the hotel daily. The FOE on shift is responsible to ensure that the rates on the display board and on the system are changed accordingly. Emphasis has to be laid on the footnote of the document, which will contain information on any particular aspect to be considered which exchanging Foreign Exchange.
GUEST ESCORT
While welcoming the guest, to make them aware of the facilities available at the hotel.
This method could be convenient source to suggestively sell the other revenue generating areas of the hotel.
PROCEDURE-
As part of the hotel USP, every guest arriving into the hotel has to be escorted up to their room, irrespective of the number of visits.
A guest escort can be divided into three parts:
From the desk to the elevator
From the elevator to the room
Inside the room.
From the desk to the elevator:
Travel desk
Car rental
Inside the room
The use of the electronic key card in opening th room door
The use of the electronic key card in activating the electricity.
The DND, Make my room and laundry signs
The mini bar charges
TV channels Local, STD and ISD facilities
Use of the in-room safe PRIORITY
Room service special order (out of the menu)
In case there is a late night arrival then check for
Wake-up call
Bed tea order
Breakfast door knob
During the escort the personalized stationary has to be carried along, and presented to the guest in the room. Check for any room service orders.
The above familiarization exercise is for the guest who is visiting the hotel for the first time. On a repeat visit it is not necessary that the whole procedure has to be explained except for the points marked priority.
Any personal information of the guest acquired during an escort would form part of that specific guest’s history.
This method could be convenient source to suggestively sell the other revenue generating areas of the hotel.
PROCEDURE-
As part of the hotel USP, every guest arriving into the hotel has to be escorted up to their room, irrespective of the number of visits.
A guest escort can be divided into three parts:
From the desk to the elevator
From the elevator to the room
Inside the room.
From the desk to the elevator:
Travel desk
Car rental
Inside the room
The use of the electronic key card in opening th room door
The use of the electronic key card in activating the electricity.
The DND, Make my room and laundry signs
The mini bar charges
TV channels Local, STD and ISD facilities
Use of the in-room safe PRIORITY
Room service special order (out of the menu)
In case there is a late night arrival then check for
Wake-up call
Bed tea order
Breakfast door knob
During the escort the personalized stationary has to be carried along, and presented to the guest in the room. Check for any room service orders.
The above familiarization exercise is for the guest who is visiting the hotel for the first time. On a repeat visit it is not necessary that the whole procedure has to be explained except for the points marked priority.
Any personal information of the guest acquired during an escort would form part of that specific guest’s history.
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