SOP – Front office – Handling Guest Rebates or Allowances

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How To Handling Guest Rebates And Allowances

  • All rebates/adjustments/allowances for charges posted to a guest must be prepared on an allowance slip and the same needs to be authorized by the department heads. Normally allowances are authorized by the Front Office Manager, Resident Manager, or Director of Sales.
  • All allowances must be also circulated for review and approval by the General Manager and Financial Controller.
  •  The Front Desk cashier normally passes an allowance when a guest indicates that they have a complaint about the room rate applied, charges on the bill, Mini bar disputes, double postings, or free inclusions which were part of the rate and may also be due to dissatisfaction of certain hotel services.
  • If the cashier feels that an adjustment is required, then they should inform the Front Office Manager or duty manager so that immediate steps for service recovery can be taken.
  •  If it is necessary, a rebate/allowance may be authorized and handled by the front office cashier, but all such rebates must be reviewed by the Front Desk Manager or duty manager at the end of each shift.
  •  A rebate should be only passed when it is the only way to placate or satisfy the guest.
  •  Post a (–ive) entry on the correct Transaction/rebate code to pass a rebate.
  •  When the decision is to make a rebate, the cashier will prepare the rebate voucher. The voucher must contain the following information:
  1. The date on which the rebate is passed
  2.  Name of Guest
  3.  Room Number
  4.  Signature of the cashier
  5.  Signature of Authorized Manager
  6.  Reason / Explanation for the Adjustment
  7.  Amount of the Adjustment
  • The voucher is then placed with the other rebate vouchers that have been run for that day for review by the Night Auditors.
  •  All rebates will be signed by the Front Office Manager / Duty manager.
  •  Report Allowance/rebate for the day will be printed daily and circulated along with the Night audit report set.
  •  The General Manager / Financial controller will also maintain close supervision over rebates. They will review and approve all rebates daily and will investigate and reconcile any unusual or recurring rebates.
  •  It should be noted that when rebates are passed with the correct corresponding rebate codes should be only used by the front desk cashier. Eg: For passing allowance on room rental the Transaction code or Department code ‘Allowance Room charges’ is only to be used.

Training Summary questions:

Q1. Who is responsible for authorizing allowances?

Q2. Why it is important to choose the correct transaction code while passing allowance?

Q3. What details are to be updated on the rebate voucher?

Q4. Who is to be informed when a guest disputes a charge on an Invoice?

Q5. When should a front desk cashier pass a rebate on charges?
SOP Number: Front Office SOP – 26
Department: Front Office – Cashiering
Date Issued: 05-May-2014
Time to Train: 30 Minutes
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