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Hotel Industry
An Overview
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Technical Aspects of Hotels
Rooms
Food & Beverages
Foreign Exchange ComplianceMarketing Department
Technological Change
Decision regarding adoption of recentTechnologies and Facilities and
Infrastructure of the Hotel
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Technical Aspects..
ROOMS
Front Office
Bell Desk
House Keeping General Administration
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Technical Aspects..
ROOMS
Front Office
Responsible for making advance booking & reservation
They prepare booking list for next day, Room rent to be
charged after discount, Airport pick-up statusFill up registration card at front office
House keeping department prepare a guest count report
and send to front office and reconcile e.g. Extra bed
requisitionSending of list of check outs to all department
Allowances (discount)
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Technical Aspects..
ROOMS
Bell Desk
Bell Captain
Bell Boy
Small Baggage
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Technical Aspects..
ROOMS
House Keeping
Supervise cleaning of guest rooms etc.
Inventory in the house keeping linen in four
set
(1)Room
(2)Laundry
(3)House keeping Store
(4)Main Store
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Technical Aspects..
ROOMS General Administration
Pricing of Rooms
Revenue can be maximise by optimising Average Room Rent
and Average Occupancy
Where,
Average Room Rent = Total Room Rent
No. of Night Sold
Average Occupancy = Total No. of Night SoldTotal No. of Night Available
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Technical Aspects..
ROOMS
General Administration
Night Audit
Night auditor confined merely to ascertain that all charges
appearing in departmental sales summary have been
correctly charged to customer folio
Cash Float
Each cashier hold minimum cash balance, Largest cash held
by general accountant in account department and next by
front officePaid Outs
Payment on behalf of guest
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Technical Aspects
FOOD & BEVERAGES
Kitchen
Banqueting
Restaurant
Bars
Room Service
Stewarding
Stores
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Technical Aspects
FOOD & BEVERAGES
Kitchen
Components of Food Preparation
Control Over Raw Materials Cost
Food Preparation and Serving of Food
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Technical Aspects
FOOD & BEVERAGES
Kitchen
Components of Food Preparation
Perishables
Provisions
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Technical Aspects
FOOD & BEVERAGES KitchenControl Over Raw Materials Cost
Purchase of Raw materials Annual Fixed Price Contracts
Rate fixed by purchase committee comprising therepresentative of the purchase department accountsdepartment and administration department
Ordering for Perishables and ProvisionsGenerally ordered on afternoon of previous day
Basis of OrderingRequisition from the head chef.
Receipts, Storage and Issue of a Raw MaterialsRejection if any are usually made immediately
Daily Receipts Register is to be maintained
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Technical Aspects
FOOD & BEVERAGES
Kitchen
Food Preparation and Serving of Food
Standard RecipesHelps in balancing Taste and Cost
Portion Control
Standard quantity to be served per dish
Menu Costing
Like price fixing
Wastage Report
Food could not serve next day
Wastage should be reported - It is an indicator of an efficiency
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Technical Aspects
FOOD & BEVERAGES
Banqueting
The major source of revenue is considered to
be sale of Food and Beverages
Plate Count is crucial aspect
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Technical Aspects
FOOD & BEVERAGES
Restaurant
Pricing of Off-Menu Items
Cancellation of bills is require to approve by
Restaurant Manager and duly defaced on bill
book
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Technical Aspects
FOOD & BEVERAGES
Bars
While Wine and Beers are sold in bottles,
spirits are also sold in pegs
Excise Record
Mixing of Drinks for Cocktails
Physical Verification at the Bar
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Technical Aspects
FOOD & BEVERAGES
Room Service
Obtaining guest signature on the bill
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Technical Aspects
FOOD & BEVERAGES
Stewarding
Responsible for maintaining stocks of cutlery
and crockery
Physical Verification
T h i l A t
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Technical Aspects .
FOREIGN EXCHANGE
COMPLIANCE
Issue encashment certificate to travelers regarding
travelers cheque and foreign currency
Submit a report to RBI
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Technical Aspects .
MARKETING DEPARTMENT
Take strategic decision regarding
Brand Image
Devising off season Packages
Holiday Food Festival
Sponsoring social event etc.
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Accounting and Control Aspects
Books Normally Maintained
Peculiar to Hotel Industry
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Books Normally Maintained
General Ledger
Cash Book, Bank Book, Purchase andExpenses Register
Journal
Debtors Ledger, Creditors Ledger
Stock Ledger Payroll Summaries
Fixed Assets Register
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Peculiar to Hotel Industry
Sales summaries of variousoperating department
Restaurant
Health Club
Allowance Register
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Recognition of Revenue
Room Revenue Accrual Basis
Classification of Fixed Assets e.g. Bath roomfittings are plant and machinery
Cutlery and Crockery Cutlery and Crockery
changed to revenue account when issued forstewarding department Allowances Allowances arise due to an error in
billing or due to guest complaint should not beincluded
Bills on Holds Either in case of Late charges or
Skipping . Provisions for doubtful debts at the endof year Bar Inventory Daily Basis, Destroying empty
bottles immediately
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Internal Control System
System is designed in such a way that Noperson in the organisation is able to controlactivity from beginning to end
The work of one employee is madecomplementary to that of another in a way
that work of one gets verified automatically There are four main parts of Internal Control
System
(1)Sales
(2)Purchase
(3)Cash
(4)Debtors
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Internal Control.SALES
Granting Discount Approved By Management
Complimentary Room Should be given in exceptional
circumstances
Permitting occupancy of a roombeyond the normal hours Should have clear-cut guideline of waiver
Granting Allowances Approved Appropriately
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Internal Control.SALES
Guest Billing Charges are billed at counter of outlet providing
services
Restaurant and Bar Rotation of duty of stewards and cashier Copy of the Kitchen Order Ticket (KOT) match
with F&B ledger
Banqueting
Collection of advance Rates and granting discount
Plate Counting
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Internal Control.PURCHASE
Annual Rate Contracts
Formal documentation
Award contract to lowest quotation
List of approved supplier to bemaintained
Numbering of Purchase Order
Formalised Indenting (requisition)System
Authority for indenting (requisition)
Proper control over serial number ofindents
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Internal Control.PURCHASE
Monitoring Stock
Re-order level, Order Quantity,Maximum and minimum stock
Stock records should be maintain onregular basis
Receipt of materials
Proper inspection at the time of receipt Proper control on number of preparation
of Goods Received Note and serialnumber
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Internal Control.CASH
Its further divided into three parts
(1)Receipts
(2)Payments
(3)Cash and Bank balance
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Internal Control.CASH
Receipts At the end of the shift cashier should be
required to submit report of cash
receipts Cash counted by both the cashier at the
time of shift change
Person responsible for maintaining books
should not allowed to handle cash Duty of cashier should rotated regularly
Chief accountant should receivesummary report for cash receipt made
during the day
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Internal Control.CASH
Payments
Vouchers are preprinted and serialnumber control should be maintain over
these vouchers
Payments made against only authorisedvoucher
Level for authorising various paymentsshould be clearly defined
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Internal Control.CASH
Cash and Bank balance
Department wise collection of each daymust be fully deposited in the bank
account
Cash for the expense must be issuedseparately
Reconcile with balance as per book
Cash of all department should producedat same place at same time
Bank balance reconciliation must be
made
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Internal Control.DEBTORS
Credit limits should be reviewed atregular time intervals
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TAX APPLICABILITY
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TAX APPLICABILITY
Luxury Tax Levied on the basis of Room Rent
Value Added Tax Levied on the basis of Sale of any Food Item
Service Tax Levied on the Service other than Room rent
Provident Fund, ESI, Professional Tax Tax related to Employee
Tax Deducted at Source
Deductible on various kind of Payment like Contract, Salary, Rent,Commission, Interest, Professional Service etc.
Fringe Benefit Tax Payable on the basis of value of Fringe Benefit