1. 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 by
The 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-checks
Ie 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

2. 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 user
A supervisory code user and a staff code user, the rights of these code users are well
defined

3. 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 guest
In 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 etc
How 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

4. 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