Paying for a bar drink or a breakfast buffet with cash or credit card does not impact the folio. Posting to the folio means recording the event, usually a sale (the charge), or a payment (the credit). Sales or Incomes: + Selling services, the sale of rooms is the hotel’s major product.ġ2 POSTING TO THE FOLIO (THE ACCOUNT RECEIVABLE)įolios are accounts receivable, debts owed by the guest and owned by the hotel. + Accounts receivable, which are debts that customers owe the hotel. +Land, buildings, furniture, and the kitchen equipment. + Decreases in assets, including accounts receivable and cash, are made with credits. The Meaning of Debits and Credits: + Increases in assets, including accounts receivable and cash, are made with debits. This knowledge is especially helpful in understanding the interface between front-office records (the transient ledger) and back-office records (the city ledger). + Single-Entity Groups + Convention Groups + Tour Groups Split Billing: The distribution of the charges between the master account and the guest’s personal folio is called split billing or split folios. + Settled at check-out as with all folios. + Transient accounts receivable, not city-ledger accounts. Master Accounts: + Accommodate tour companies, trade associations, convention organizations, and single-entity groups. A room with several unrelated persons would need several folios if each is to pay an equal share.Ĩ The Folio: The Group Account Receivable Number of Folios: + One folio is the norm for each occupied room. Location and Filing of Folios: + Modern hotels use the computerized folios that property management systems (PMSs) create. + City Ledger: A ledger of city receivables + Transient Ledger: A ledger of transient receivables also called a rooms ledger, a front-desk ledger, a guest ledger Posting: The process of recording a charge or credit on the folioħ The Folio: The Individual Account Receivable Types of Accounts Receivable (A/R): Types +Ĝity Receivables: Accounts receivable who are not registered + Transient Receivable: Accounts receivable who are currently registered Registered=checked in Recording (Accounting) for Each Transaction: Understanding accounting rules is not essential to a clear understanding of the other three components of the chapter.ĥ ACCOUNTS RECEIVABLE A customer who owes a business for services that have not been paid is known as an account receivable. It is ready even though the exact moment of departure is unknown, even unknown to the guest. In the meantime, guest purchases are recorded on a bill, which hotel professionals call a folio.Ĥ Preparing the Folio: The folio is available on demand to both the guest and the hotel’s management. Recording Sales: Unlike other retail merchants, the hotel merchant waits for payment. Recording those sales is what this chapter is all about.ģ Sale of Services: Some hotels (budgets) offer room sales only, others have many operating departments ranging from room service, to wedding chapels, to spas. Selling those services is what hotel-keeping is all about. Between check-in and check-out, guests enjoy the services of the hotel.

Guest folio for hotel