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
7/18/2019 60 Cash Handling
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
7/18/2019 60 Cash Handling
3/20
under Academic supervision of
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
7/18/2019 60 Cash Handling
4/20
under Academic supervision of
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
7/18/2019 60 Cash Handling
5/20
under Academic supervision of
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/
7/18/2019 60 Cash Handling
6/20
under Academic supervision of
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
7/18/2019 60 Cash Handling
7/20
under Academic supervision of
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
7/18/2019 60 Cash Handling
8/20
under Academic supervision of
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
7/18/2019 60 Cash Handling
9/20
under Academic supervision of
Sample of an Allow. vr. crtsy. the Taj President
7/18/2019 60 Cash Handling
10/20
under Academic supervision of
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
7/18/2019 60 Cash Handling
11/20
under Academic supervision of
"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
7/18/2019 60 Cash Handling
12/20
under Academic supervision of
#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
7/18/2019 60 Cash Handling
13/20
under Academic supervision of
#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
7/18/2019 60 Cash Handling
14/20
under Academic supervision ofCrtsy:. The Taj President
7/18/2019 60 Cash Handling
15/20
under Academic supervision of
#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/
7/18/2019 60 Cash Handling
16/20
under Academic supervision of
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*
7/18/2019 60 Cash Handling
17/20
under Academic supervision of
Procedure for #oreign $%changeProcedure for #oreign $%change
Find out the currency to be e$changed1 and
determine whether it is e$changeable as per
7/18/2019 60 Cash Handling
18/20
under Academic supervision of
Procedure for #oreign $%changeProcedure for #oreign $%change
7/18/2019 60 Cash Handling
19/20
under Academic supervision ofThankThank
7/18/2019 60 Cash Handling
20/20
under Academic supervision of
Recap ObjectivesRecap Objectives
3ow =ou are able to-
Understand the importance of Cash Handling
escribe the process for trac!ing transactions
"ypes of "ransitions
How to handle Foreign #$change
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