SOP Finance and Accounting – F&B Primary Controls

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SOP For F & B Primary Controls

Purpose of F & B Primary Controls :

The Finance and Accounting department in the hospitality industry is responsible for ensuring the proper management of financial resources and minimizing financial risks. One of the primary controls that they implement in hotels is related to Food and Beverage (F&B) operations.

F&B is a critical aspect of hotel operations, as it contributes significantly to revenue generation and guest satisfaction. However, F&B operations also involve a high level of financial risk due to the potential for waste, theft, and inaccurate accounting. To mitigate these risks, the Finance and Accounting department puts in place various primary controls.

One such control is the implementation of standard operating procedures (SOPs) for F&B operations. These SOPs provide guidelines for F&B staff on how to manage inventory, handle cash, and record transactions accurately. In addition, the Finance and Accounting department oversees the implementation of these SOPs and ensures that they are being followed consistently across all F&B outlets in the hotel.

Another critical control is the segregation of duties. This control ensures that no single person has complete control over F&B operations, from purchasing to inventory management to cash handling. By separating these responsibilities, the risk of errors, fraud, and misappropriation of funds is minimized.

Overall, the Finance and Accounting department plays a crucial role in ensuring the financial health and integrity of a hotel’s F&B operations. Through the implementation of SOPs, segregation of duties, and other primary controls, they are able to mitigate financial risks and ensure the accuracy of financial reporting.

The purpose of this policy is to standardize the method for processing the various food and beverage sales promotions and other in-house charges for functions within the Hotel that benefit a particular department or customer. It is the responsibility of the General Manager. Controller and Food and beverage Director to ensure compliance with this policy.

 F & B Primary Controls SOP Procedures:


1. Inventory prices should be the most current price including any applicable tax, freight, and purchasing fees.

2. All inventory extensions should be done on a computerized spreadsheet. Entry of units and prices should be done by the department and verified by the Accounting Department.

3. Inventory levels should be established at balances to meet the needs of business volume. The Accounting Office should review levels to verify that over-purchasing is not being done and that obsolete. damaged and spoiled items are not being carried.

4. Food and beverage inventories should be counted every month by the department with spot checks by the Account Office. All inventories should be completed on a shelf-to-sheet, not a sheet-to-shelf basis.

5. Other inventories such as food and beverage linen, glass, and silver should be counted every quarter with spot checks by the Accounting Office.


1 Every menu should be costed and a potential performed twice a year. This should be monitored monthly if a Point-of-Sale System is in place.

2. High-cost items such as meat and fish should be monitored daily by the Chef. This should be done by production charts. steak charts and requisitions or daily sales records from the Point-of-Sale System compared to purchases. A member of the accounting staff should spot-check this usage monthly.

3. A member of the accounting staff should monitor the issuing and receiving procedures of the food storeroom monthly and ensure that the bidding process is in place.

4. Two (1) year. Any purchase over $500.00 should also have three(2) bid minimums required for recurring purchases such as office. supplies and food and beverage items. The Bid Sheets should be maintained for one (3) bid attached to the Purchase Order.

5. Food and beverage invoices should be signed and dated at the time of delivery by an authorized receiver and entered on the Daily Purchase Log. These Logs will be balanced daily to the A/P posting batch and the General Ledger at month end.

6. Buffets should be controlled with a pre-numbered two-part hard check. where the hostess marks the table number and covers on the check. maintains one copy and leaves the other on the table. The server then attaches the point-of-sale check to the hard copy check.

7. No food should be prepared in the kitchen without a chit from the POS

8. Only Managers should have the ability to void items from a check.

9. Promotional items and comps should be accounted for in the POS.


1. Drink prices and wine lists should be costed and potentially performed twice a year. This should be monitored monthly if a Point-of-Sale System is in place.

2. A member of the accounting staff should review at least twice a month that a bidding process is in place with beverage vendors.

3. A beverage par for each liquor storeroom should be established. A member of the accounting staff should verify that these parts are maintained and that issuing is done on a bottle-for-bottle basis. Each storage area should have a colour-coded and dated stamp on each bottle.

4. The main storeroom should be controlled by a perpetual inventory that is updated daily. Each property should have a Local Standard Operating. Procedure that outlines access to the storeroom and control guidelines.

5. Locks on all outlet cabinets need to be changed quarterly.

6. Cover charge procedures should be monitored by the Accounting Office to ensure that the proper controls are in place.

7. Wine issuance should be monitored by signed issuing sheets against guest checks or Point-of-Sale Reports

8. All bartenders should perform blind drops.

9. All checks should be red-lined or a pre-run chit must be presented before a bartender issues drinks to a server. Checks should always be placed on the bar in front of the customer when the drink is served.

10. Banquet consumption sheets must be completed for all banquet bars. They should be costed to review the percentage and audited against the banquet check.

Training Summary Questions:

Q1. Who should monitor high-cost items such as meat and fish?

Q2. Who can void items from a check?

Q3. Who procedures should monitor cover charge?

Q4. What should be the cost to review the percentage and audit against the banquet check?
SOP Number: Finance and Accounting SOP – 20
Department: Food & Beverage Controls
Date Issued: 8-Aug-2021
Time to Train: 25 Minutes
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