Standard Procedure For Settlement of Guest Account at Checkout
As per the billing instructions mentioned in the reservation correspondence, the cashier should prepare the bill for the guest. The billing instructions should be also printed on the guest registration card.
If the billing is to be settled to the Company / Travel AgentTravel Agent who receives the commission for the bookings given to the hotel.�A travel agency can ... account then check for the credit letter from the accounts and also make sure a valid AR ID is present on the Company / Travel Agent profile.
Prepare the guest folio as per the billing instructions:
- Check the billing instructions mentioned on the reservation for preparing the guest bill.
- In case only the room and taxes are to be billed to the company / TA then move only those charges to another folio for example folio B and keep all the extras which the guest needs to make a direct settlement on folio A.
- If the Property management system allows auto routing then a routing instruction needs to be set at the time of reservation itself so as per the billing instruction charges will be transferred to each corresponding folio automatically as and when they are posted.
- In case the guest is part of any pre-paid packages with certain inclusions, then move the charges that are pre-paid by the guest to a separate folio and then keep the extras on one folio. By doing this cashier can easily explain to the guest on charges that are already paid and those charges that need to be settled by the guest.
Settlement of GuestDefinition of Guest in Hospitality Industry: A guest is the most important person in any business. A... Accounts with credit card:
- For Approved credit cards verify that the credit card voucher filed with the folio belongs to the correct guest. Also, verify that the credit card number and name are legible on the voucher.
- If the folio balance exceeds the previously authorized amount, the card Centre must be called for authorization. Compare the voucher and the credit card to ensure that the signatures match.
- If the guest has presented an approved credit card at check-in, this same credit card must be used in settling the account. If the guest wishes to charge the account to another credit card, it must be verified through the credit card authorization Centre before settling the account.
- Enter the correct amount on the EDC machine after swiping the credit card.
- Get a signature from the guest.
- Select the correct credit card type and enter the same amount as what appears on the EDC slip while settling the guest bill.
Bill to Company or AR settlements:
- A folio must be presented to the guest for signature on all ‘Bill to Company’ or ‘Bill to AR’ settlements.
- For all Bill to AR settlements, a valid AR number should be present on the company / TA profile.
- An approval letter for the company CreditCredit is a decrease in an asset or an increase in a liability; or an amount of money the hotel owes... settlement / VoucherVoucher is a document supporting a business transaction. should be attached with a signed invoice copy by the guest.
- A credit card cannot be accepted as authorization for a Company Credit facility by the hotel.
- All AR billing requests must be directed by sales and approved by Accounting or Credit ManagerManager is a person in the hotel operations who is assigned to manage or supervise a group of employ....
Payment of Guest AccountAccount is a record in which the current status (or balance) of each type of asset; liability; owner... By Personal Cheque:
- Accepting payment by Personal cheque depends upon hotel management’s policy.
- In case the hotel allows settlement by personal cheque, then the cheque must be imprinted with the guest’s name, address, and telephone number and the cheque number must be at least 200 or higher.
- Do not accept a cheque that is drawn on a new account.
- Checks may be accepted for the exact amount of the folio balance, provided proper credit information (and approval) was secured at check-in and is indicated on the folio.
- If this information has not been taken, the cashier must secure it (and any necessary approvals) and record it before accepting the check.
- In the absence of credit information, record the room number, address, telephone number, and date of checkout on the front of the check.
- The cashier should also notify the Front Office Manager or Duty manager if the required information was not collected at the time of guest check-in.
- Also, If possible, a credit card authorization letter should be collected from the guest as a precaution just in case the check did not cash in.
Settlement by Cash or Foreign currency:
- In certain countries for settlement by cash if the bill value is greater than a certain amount (e.g.: more than $1000 etc.), then the guest needs to provide a valid government ID (TFN, PAN card, Passport, etc.) while payment.
- Also in case the hotel is not allowed to accept foreign currency for bill settlement then, The cashier should perform a proper foreign currency exchange and then adjust the amount with the outstanding guest bill.
After DepartureThe time when the in-house/resident guest leaves the hotel. Charges:
- After departure charges can be handled in below ways
- VoidReversal of Charges on the guest folio which was posted on the same day. the original invoice after getting approval and make the required adjustments. ( For same day only)
- Make the adjustment settlement as a chance sale.
- A copy of the adjusted voucher and final room folio must be mailed to the guest.
- Appropriate reasons should be mentioned by the cashier for voiding the invoices.
Test your knowledge
SOP Front Office – Settlement of Guest Account at Checkout
According to billing instructions, who is responsible for preparing the bill for a guest at checkout?
The cashier is responsible for preparing the guest's bill.
If a bill is to be settled by a Company/Travel Agent, what two items must be checked first?
A credit letter from the accounts and a valid AR ID on the company or travel agent profile.
When a company pays for room and tax only, what should be done with the guest's extra charges on the folio?
The extra charges should be moved to a separate folio for the guest to settle directly.
Before settling a bill with a credit card, what must be done if the folio balance exceeds the previously authorized amount?
The card center must be called for a new authorization.
What action must a guest take for all 'Bill to Company' or 'Bill to AR' settlements?
The guest must sign the folio to acknowledge the charges.
What document should be attached to the signed invoice for all 'Bill to AR' settlements?
An approval letter for the company credit settlement or a voucher from the travel agent.
The acceptance of a personal cheque for bill settlement primarily depends on the hotel's ____.
management policy
For cash settlements exceeding a certain amount in some countries, what must the guest provide?
A valid government ID, such as a PAN card or passport.
If a hotel cannot accept foreign currency for bill settlement, what must the cashier do first?
The cashier must perform a foreign currency exchange and then use the local currency to settle the bill.
How can after-departure charges be handled on the same day as the original checkout?
The original invoice can be voided after approval and the required adjustments can be made.
Training Summary questions:
Q1. What are the different types of settlement in the Front officeFront office is the communication; accounting; and service center of the hotel?
Q2. Process for the bill to company settlement?
Q3. What all needs to be checked while making a check-out by credit card?
Q4. Is it required to collect a Valid ID proof in case of cash settlement greater than 50000?
Q5. What all needs to be checked before accepting personal cheques for bill settlement?
Patreon Only SOP Download
SOP Number: Front Office SOP – 20
Department: Front Office – Cashiering
Date Issued: 10-May-2014
Time to Train: 25 Minutes
