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SOP For Advance Deposits

SOP Number: Finance and Accounting – 28

Department: Accounts Receivable

Date Issued: 8-Aug-2021

Time to Train: 28 Minutes

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.

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 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 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?

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Authored and managed by Augustine, a hotelier with over 20 years of experience in the industry. He has a 3-year diploma with 'honors' from the American Hotel & Lodging Educational Institute and a Bachelor of Computer Application - BCA Degree.