SOP – Front Office – Settlement Of Guest Account At Checkout

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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 Agent 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 Guest 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 Credit settlement / Voucher 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 Manager.

Payment of Guest Account 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 Departure Charges:

  • After departure charges can be handled in below ways
  • Void 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.

Training Summary questions:

Q1. What are the different types of settlement in the Front office?

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?

SOP Number: Front Office SOP – 27
Department: Front Office – Cashiering
Date Issued: 10-May-2014
Time to Train: 25 Minutes

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