SOP Finance and Accounting – Advance Deposits

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Steps For Processing Advance Deposits In Hotels

Purpose of Advance Deposits:

To standardize the method of recording advance deposits on all properties. It is the responsibility of the Controller and General Manager or Front Desk Manager to ensure that the following methods are used to record advance deposits.

Processing advance deposits in hotels is an important aspect of managing reservations. Properly handling these deposits ensures that the hotel is able to secure the room and provide a smooth check-in experience for the guest.

Here are some steps to follow when processing advance deposits in hotels:

  • Confirm the deposit amount: Before processing the deposit, ensure that the amount received matches the amount quoted to the guest. This will prevent any confusion or disputes later on.
  • Update the reservation record: Once the deposit has been received, update the reservation record to reflect the payment. Ensure that the payment is properly allocated to the room and dates booked.
  • Send a confirmation to the guest: Send a confirmation email or letter to the guest acknowledging receipt of the deposit and confirming the reservation details. This will provide the guest with peace of mind and serve as a reference for any future inquiries.
  • Store the deposit securely: Make sure to store the deposit in a secure location, such as a safe or lockbox. This will prevent any theft or loss of the deposit.

By following these steps, hotels can ensure that advance deposits are processed efficiently and accurately, resulting in a positive experience for both the hotel and the guest.

Advance Deposits SOP Procedures:

All advance deposits should be logged and restrictively endorsed. The checks are separated as either Rooms or Banquets advance deposits. They should be listed by date of arrival. Copies of the Logs and checks should be made and the actual checks dropped in the drop safe.

A copy of the Log should be given to Accounting. Banquets and Reservations.

1. The catering secretary should create a master for the group and advise Reservations of the account number.

2. Reservations should transfer the reservation from their Reservation System. and post the advance deposit in the advance deposit mode They should then run a shift close to the balance to the check copies and drop the check copies in their drop envelope.

3. The General Cashier will compare the totals posted by Reservations to the total drop from the original processor and report any overages or shortages with the Consolidated Deposit Over/Short Report.

4. Under no circumstances should any advance deposit receipts be held or not posted on the same or the next business day that they are received.

5. The advance deposit detail should be reconciled daily to the control total in the Guest Ledger and balanced to the General Ledger each month.

Training Summary Questions:

Q1. Who has to ensure the methods are used to record advance deposits?

Q2. Why should run a shift close to balance and where to drop the check copies?

Q3. Who will compare the totals posted by Reservations to the total drop from the original processor?

Q4. What are the checks separated as?
SOP Number: Finance and Accounting SOP  – 28
Department: Accounts Receivable
Date Issued: 8-Aug-2021
Time to Train: 28 Minutes

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