SOP Finance and Accounting – Accounting For Charge Backs

Support Our Work

Since 2011 Setupmyhotel has been helping hundreds of hoteliers around the world. Support us by becoming our Patron! Exclusive resources, ad-free content, and more!

How To Process Chargebacks 

Purpose of Accounting For Charge Backs :

In the realm of finance and accounting, chargebacks can be a complex and challenging topic to navigate. In essence, a chargeback occurs when a customer disputes a charge on their credit or debit card and the funds are returned to the customer. This can happen for a variety of reasons, such as fraud, incorrect charges, or disputes over the quality of goods or services received.

As a result, accounting for chargebacks can be tricky. It’s important to ensure that the proper accounts are credited and debited and that any related expenses or revenue are properly recorded. This is where the SOP (Standard Operating Procedure) for finance and accounting comes in.

The SOP for accounting for chargebacks should outline the steps that need to be taken when a chargeback occurs. This may include verifying the reason for the chargeback, determining the correct accounts to be debited and credited, and ensuring that any related expenses or revenue are recorded properly.

By having a clear and concise SOP in place, finance and accounting teams can ensure that chargebacks are handled efficiently and accurately. This can help to minimize the impact of chargebacks on the company’s financial statements and maintain the integrity of the company’s financial records.

Returned Checks SOP Procedures:

1. When CHARGEBACKS OR RETRIEVAL REQUESTS are received, the Accounting Department must respond in the prescribed time for each credit card company and maintain a log of action taken.

2. When a credit is due to the guest, advise the credit card company that a credit was issued.

  • Prepare an adjustment voucher and post it through the PMS System.
  • Code to the corresponding revenue account if an error in charging.
  • Code to the correct bad debt account is considered a write-off.
  • Adjust the appropriate statistical account as necessary.

Training Summary Questions:

  1. What is the purpose of accounting for chargebacks?
  2. Explain the impact chargebacks can have on businesses. How do they affect revenue, cash flow, and overall profitability?
  3. What steps should businesses follow to properly account for chargebacks?
  4. Who is responsible for ensuring that the prescribed methods are used to process chargebacks, according to the article?
  5. Describe the first step businesses should take when chargebacks or retrieval requests are received, according to the article.

Patreon Only SOP Download

Sorry! This part of content is hidden behind this box because it requires a higher contribution level ($1) at Patreon. Why not take this chance to increase your contribution?
Sorry! This part of content is hidden behind this box because it requires a higher contribution level ($6) at Patreon. Why not take this chance to increase your contribution?
SOP Number: Finance and Accounting SOP – 35
Department: Accounts Receivable
Time to Train: 30 Minutes
Enjoying our content? Support us on Patreon!
Become a patron at Patreon!
Spread the love

Back Office Job Description Banquet BAR Beverage Service Cashiering Chef Chef Training Cleaning Concierge Duties and Responsibility Engineering Executive Chef F&B Setup F&B Training Finance Food Service Front Desk Front Office Formats Front Office Setup Front Office Training Guest Room Guest Services Hospitality Basics Hotel Formats Hotel Security Hotel Staff Job Description Hotel Staff Training Housekeeping Formats Housekeeping Setup Housekeeping Training Kitchen Kitchen Basics Kitchen Training Maintenance Maintenance Technician Reservation Restaurant Sales SOP SOP F&B Service SOP Finance and Accounting SOP Front Office SOP Housekeeping SOP Kitchen Staff Training

Support Our Work

Since 2011 Setupmyhotel has been helping hundreds of hoteliers around the world. Support us by becoming our Patron! Exclusive resources, ad-free content, and more!

Learn more