60 Cash Handling

7/18/2019 60 Cash Handling

1/20

under Academic Supervision of

Rooms DivisionRooms Division

ProcessesProcesses

Session 60Session 60

Cash HandlingFoundation Certificate in InternationalFoundation Certificate in International

Hospitality ManagementHospitality Management


2/20

under Academic supervision of

Session ObjectivesSession Objectives

By the end of this session you will be able to

Understand the importance of Cash Handling

escribe the process for trac!ing transactions

"ypes of "ransitions

How to handle Foreign #$change


3/20


Tracking TransactionsTracking Transactions

% ma&or concern is communication of transactionalinformation from remote points of sale '()S* to the

F)

Charge purchase transactions must be correctly

documented in order for the F) to maintain accounts"he night audit is intended to +erify transactional data

to ensure that the F) collects accounts recei+able for

all goods and ser+ices

%t a point the guest chec!s out and the balance isbrought down to ,ero


4/20


Types of TransactionsTypes of Transactions

"here are a +ariety of transactions as-

Cash (ayment

Charge (urchase

%ccount Correction

%ccount %llowance

%ccount transfer

Cash %d+ance


5/20


Cash PaymentCash Payment

Cash payments reduce a guest.s net outstanding

balance are posted as credits to the guest

thereby decreasing the balance of the account

% cash +oucher is used to support suchtransactions/


6/20


Charge PurchaseCharge Purchase

"hese represent deferred payment transactions/

"he buyer guest recei+es the goods and

ser+ices from the hotel but chooses to pay for

them later/ "hus increasing the outstandingbalance/

A charge voucher takes care of the same. This

is filled up by the POS and handed over to the

front desk


7/20


Account CorrectionAccount Correction

It resol+es an account correction posting error on

a folio

"his is usually made on the same day the error is

made1 before the close of businessCorrection Voucheris used here

"he correction may increase or decrease the

account balance


8/20


Ao!anceAo!ance

It in+ol+es 2 types of transactions/

For ser+ice reco+ery

% posting error noted after the close of

business 'after 3ight %udit*%n ao!ance voucheris used

It re4uires management appro+al


9/20


Sample of an Allow. vr. crtsy. the Taj President


10/20


VouchersVouchers

Account transfer

% transfer vouchersupports the reduction in

balance on the originating folio and the

increase in balance in the destination folioCash advance

%n advance voucher is used

If guests want cash ad+ance against the roomthis is supported by the cash +oucher


11/20


"nterna Contro"nterna Contro

It in+ol+es trac!ing transaction documentation

5erifying account entries and balances

Identifying +ulnerabilities in the accounting

system%uditing is the process of +erifying F) records

for accuracy and completeness


12/20


#ront Office Cash Sheet#ront Office Cash Sheet

"he F) is responsible for collecting cash

transactions which will affect guest and non

guest accounts

(roper cash handling procedures and controlsmust be established and implemented


13/20


#ront Office Cash Sheet#ront Office Cash Sheet

hy is it re4uired7

8ists each receipt of disbursement of cash

Used to reconcile cash on hand at the end of a

cashier shift(ro+ides separate columns to recordtransactions affecting guest accounts and nonguest accounts

9ecords money collected when guests chec! out(ro+ides space for itemi,ing cash disbursementsor paid outs


14/20

under Academic supervision ofCrtsy:. The Taj President


15/20


#oreign $%change#oreign $%change

#ssentials

9egulated by 9BI

#ach hotel has to get +alid authori,ation to deal

in F)9#:"he Front office cashier is the authori,ed person

on behalf of the management who earns

F)9#:/

"he daily e$change rate should be displayed for

guests but these +ary from time to time/


16/20


Procedure for #oreign $%changeProcedure for #oreign $%change

9e4uest the guest to produce hisher passport

details

%s! the guest for his her room number

In case of non;residents1 re4uest the guest tocontact the lobby manager as an authori,ation is

re4uired 'Usually re4uests are not entertained*


17/20



Find out the currency to be e$changed1 and

determine whether it is e$changeable as per


18/20




19/20

under Academic supervision ofThankThank


20/20


Recap ObjectivesRecap Objectives

3ow =ou are able to-

Understand the importance of Cash Handling

escribe the process for trac!ing transactions

"ypes of "ransitions

How to handle Foreign #$change

60 Cash Handling

Documents

Transcript of 60 Cash Handling