DIRECT BILLING

GOAL: All Direct Billing privileges will be authorized and controlled by the Accounting Department

SCOPE:

• To establish procedures for the approval of Direct Billing privileges.

• To outline procedures for handling Direct Bill accounts.

RESPONSIBILITY:

ACCOUNTING

1. If a company wishes to obtain Direct Billing privileges with the hotel, they must first submit a Letter of Authorization for Direct Billing" to the Accounting Office.

2. The "Letter of Authorization for Direct Billing" must contain the following:

• The letter must be on company letterhead.

• The letter must include the names of all individuals authorized to sign.

• The types of charges for which they may sign (i.e., room and tax, sign for

  all charges, etc.)

• The bank and branch that the company uses.

• At least four credit references.

• The correct billing address.

• The name of the individual who will receive and approve the statement.

  
  

3. These letters are then kept on file for future reference. One copy is sent to Reservations and one copy is sent to the Front Desk.

4. Blanket Direct Bill authorizations may be kept on file for companies that make large numbers of reservations. The decision as to when to do this rests with the Controller. In this case we should request an updated authorization letter on an annual basis. The decision to continue Direct Bill privileges will be based on payment history.

5. If a company becomes delinquent in payments, it is the responsibility of the Accounting Office to notify Reservations and the Front Desk that Direct Billing

privileges are suspended for this company. Billing privileges are to be suspended until full payment is received from the company. At that time the Controller must make the decision as to whether to re-instate Direct Bill privileges for the company.

RESERVATIONS/FRONT OFFICE

1. After a company and/or account has been cleared by Accounting for Direct Billing, the Reservations staff can then use their copy of the approved Direct Bill Request Letter as authorization to stamp "Bill Direct" on all future reservations for that company.

2. Only accounts pre-authorized by Accounting may Direct Bill. If a guest requests Direct Billing to his/her company, and there is no authorization on file, he/she should be referred to the Credit Manager or Controller.

3. The Front Desk is not authorized to approve any Direct Bill arrangements.

4. At checkout, Direct Billing Accounts must be verified and signed by the guest to acknowledge verification. This will help to prevent most billing disputes after checkout.

5. Frequent traveler programs do allow automatic direct billing privileges for certain level membership. In this case the clerk must obtain a credit card imprint on the back of the registration card