Advance Deposits

Objective ：

In order to minimize exposure to loss resulting from excessive balance on guest accounts, advance deposits will be requested for during check-in, room reservations, and banquet functions.

• Check-in Deposits received through cash payment, or Credit card authorization, but avoid use cheque as not sure the status in the bank. 

• Room Reservation Deposits received through cash, bank remittance, Credit card, or company cheque with current date, or Guarantee Letter after Credit Approval.

• Banquet FunctionDeposits received through cash payment,, bank  remittance, or Credit card, only limited with Finance approval the cheque implement.

Procedure ：

1. Check-In

All IDR cash deposits or company cheque deposits placed by guests should be recorded on the guest folio. A copy of the Deposit Receipt should be printed out from hotel system  and given to the guest. Upon check-out the guest should return the Deposit Receipt to Front Office Guest Service Agent, and any credit balance will refund to the guest by paid out in the front office if the deposit was paid by cash; If the deposit was paid by cheque , the refund should be done by Accounts Receivable though the cheque ; If must be return by cash paid out, should be approved by Director of Finance & Business Support. The cash paid out voucher must be signed by both the guest and Front Office Guest Service Agent.

All US Dollars cash deposits paid by guests should be supported by an deposit receipt issued by the hotel. The US Dollars Cash Deposits will be then given to AM to kept in the safe . Upon guest check out, full US Dollars amount will be refunded to guest, Front Office Guest Service Agent must get back the deposit receipt from the guest and stamp “PAID” on the deposit receipt. The deposit receipt will then be attached to the Check-out folio and submitted to Finance department. If guest want to use US Dollars settle the folio, the Front Office Guest Service Agent should exchange US Dollars to IDR according to the “Foreign Exchange Procedure”, then allow the guest settle the folio by IDR.

Deposits which guarantee by credit card authorization, front office staff should obtain credit card adequate amount of authorization from bank through EDC machine or telephone and attach to the guest registration card. Credit Card sales will not be entered into the EDC machine. Upon guest Check-out, do an OFFLINE Posting for amount authorized.

Example: ：

Eg. A  1

Authorized Amount                              

Total folio amount upon Check-out     

Upon Check-out: （How to do depending on Credit Card Company’s policy）

• Do an OFFLINE posting of the total amount IDR 6.000.000,-, based on Credit Card Authorization amount, if the bill folio more than IDR 6.000.000,-

• And do a sales posting of the balance IDR 2.000,000,- for rest after above payment

• Write down the Authorized Code on the Credit Card Imprint

•  (Both Credit Card imprints must sign by guest)

Or

• Cancel the Authorized amount which got upon check in

• And do a sales posting of the total amount IDR 8.000.000,- from total folio

Eg. B

Authorized Amount

Total folio amount upon Check-out

Upon Check-Out:              

Just do an OFFLINE POSTING of IDR 2.000.000,-

• Total amount of deposits should receive from the guest will base on the following:

Room Charge / Per day    =A  (e.g. 800.00)

Incidental Charges / Per day            =B （e.g. 300.00）

Deposits Amount =(800+300) x No of days intends to stay

Flexibility to be extended for regular guests and for guests who stay more than 7 days.

2. Room Reservation Advance Deposit 

An advance deposit can be done through payment in the form of a cash, cheque, bank draft, bank transfer, travel agent, direct mail.

Advance deposits will be posted and deposited immediately upon receipt.

An advance deposit if done by cash, cheque and also for this deposit has reservation, Front Office staff will key the amount direct into the reservation; If does not has a reservation, they will key the amount into Permanent Folio “Room Advance Deposit”. (Upon the guest check-in, the Front Office Guest Service Agent should apply the advance deposit into the guest account from Performa Folio by the Deposit Transfer Voucher.)The Cash / Cheque should be put in the remittance envelope and dropped in the safe.

An advance deposit if done by bank draft, bank transfer, travel agent, direct mail, the General Cashier will give a list of deposits received through the various sources, with details of name of guest/company, amount received in equivalent to the local currency( if amount is received as foreign currency) and submit it to Credit Office.

1. Accounts Receivable will verify all record on that list and write down the reservation number (if has reservation ) by each transaction, for that which does not has reservation, after she/he checked with S&M department should inform the Reservation department to key the respective information into the system to make the reservation. 

   
   

   Then according the list which prepared by Accounts receivable, Front Office Guest Service Agent will use payment code “Check” to key in the amount of deposit received for each individual into the related reservation accordingly. A daily report of these inputs will be counter-checked by the Income Auditor to ensure that it tallies with the General Cashier’s Report for the day.

2. If a guest checks-in earlier or later than reserved, it is only the Front Office Manager or Duty Manager can authorize the utilization of the advance deposit after verifying and certifying the correctness of the guest name.

3. The Income Auditor will have to verify the utilization report daily to ensure that they are proper and correctly applied.

4. At the end of each month, the amount matured and not utilized will be transferred to the back office for recording purposes. A detailed listing of name of guest, date of payment received, stay duration and amount must be listed individually and must reconcile to the General Ledger Control Accounts.

.

3. Banquet Function

For the deposit received through cash or cheque payment, the Banquet Sales staff should bring the guest go to front desk to pay the deposit; Front Office Guest Service Agent should input the deposit amount and booking information into the proper PQ(Banquet Deposit) Room according the Event Order, and issue deposit receipt to guest. And the deposit will dropped in the safe by Front Office Guest Service Agent ;

According the Event Order outlet cashiers will settle the bill to the appoint PQ No.; And the bill will pass to Front Office;

When the function finished , the Banquet Sales Staff  should bring the guest go to front desk to settle his bill; And the Front Office Guest Service Agent should request the guest to return the deposit receipt, The balance will be settled by cash or cheque at Front Desk. 

If the client is staying in the hotel, the deposit and charges will be posted to his designated room folio and the room number will be showed in the Event Order.

Credit can be extended to client without credit account on recommendation of the DOSM/DOFB and with the approval of the Manager, Business and Support and the General Manager. And all approved credit arrangements require full payment within seven (7) days since the function finished.

All accounts without prior credit arrangement are required to be settled at the end of the function by way of credit card, cash, and company cheque.

4. The hotel Director of Finance & Business Support should review the monthly guest deposit record, ensuring they are not retained beyond sixty (60) days past the expected arrival date. Any unapplied advance deposit should immediately investigate and follow up.