MAIL RECEIPTS AND ACCOUNTS RECEIVABLE DEPOSITS FOR GUEST ROOMS

Goal: All incoming checks should be logged and restrictively endorsed by an individual not handling cash, receivables or payables. Checks should be directly deposited in drop safe by this individual. Information regarding advance deposits for guest rooms is forwarded to the reservations office.

SCOPE:

To outline procedures for handling of guest room advance deposits to insure the efficient and accurate crediting of proper accounts.

PROCEDURE:

INCOMING CHECKS

1. Checks received in the hotel for advance deposits are routed to the hotel's designated employee for processing. (This is often the Executive Secretary). The checks are copied to Accounting and deposited in the Drop Safe.

2. All information on the Advance Deposit Receipt Log (see below) is completed, and a copy is immediately forwarded to Reservation's.

3. Copies of checks and corresponding backup are brought to the Reservations Office to be accepted and signed for on the Receipt Log. The Receipt Log is then brought back to Accounting.

4. Reservations will post the new deposits into their system using the advance deposit mode and produce corresponding folios, to attach to the log as verification of accurate input.

NIGHT AUDIT

1. Reservations will then cash out at the end of their shift following normal cash out procedures and drop the copies of the check or the drop, to be reviewed by accounting.

2. Night Audit will verify each night that both the total deposits received that day -- and the total advance-to-guest transfers that day -- are in perfect agreement with the Advance Deposit Control Report in the Front Office system. Upon resetting this report, they will sign off in its accuracy.

   
   

FRONT OFFICE

1. The Desk 7:00 a.m. - 3:00 p.m. Shift Supervisor, will first compare advance deposit reservations against the other reservations for that day -- eliminate duplicates. If a "dupe" is found, the folio with the check on it must remain the live one -- while the others are voided. Detail information may be changed on this folio if necessary, with proper documentation, but it must not be voided or replaced.

2. Only two things can happen to these folios during the course of the day. Either the deposit is automatically transferred into Guest Ledger when the folio is checked in or the folio is returned to Night Audit that night.

   
   

CASH DEPOSITS

1. If a guest insists on paying a deposit for a future date by cash or credit card during a business day, the transaction is to be posted to the appropriate folio -- in ADVANCE MODE -- at the Front Desk.

2. If the guest(s) present this situation during an evening or weekend shift, the Desk Shift Supervisor must assume the responsibilities of posting the transaction correctly, attaining all necessary information, copying the Director of Transient Sales and the Assistant Controller and making certain that Night Audit gets the folio, with their regular cash out work.

STATUS CHANGES

1. All employees and managers in Front Office, Night Audit, Accounting, Sales and Catering must be made aware that any change of information pertaining to a reservation that is guaranteed by an advance deposit MUST be handled in a structured fashion with a reliable audit trail. Virtually

   all misapplied credits are the result of a gap in communications. The controls outlined herein are designed to minimize guest inconvenience, avoid mix-communications and ensure the timely application and/or refunding of monies that were sent to us in good faith.

2. On an advance deposit cancellation form, the original information must be clearly defined, to eliminate any chance of changing the wrong deposit. The updated information must be signed off by the Reservations Manager -regardless of whether other deposit is for Rooms, Group or Catering.

3. On a cancellation, the steps required are clearly outlined on the Status Change Form.

4. For cancels, the Reservations Manager, after verifying the status and corresponding approvals, will update the Log Book in Reservations and bring the Status Change Form to Accounting -- to be accepted and signed for.

5. Accounting will then make two copies of the form, one of which is for Reservations to return to their "Deposit Cancel" file. Accounting will then list cancel in their receipt log, noting "CKL" in the "check # " column.

6. Since the form calls for a refund, Night Audit will transfer the credit from advance mode into guest ledger, direct bill the credit and attach the Status Change form to the folio. (For tracking purposes, this must all happen on the same day/night that the form is submitted to Accounting by the Reservations Manager.

7. Upon receiving the folio in Accounts Receivable, Accounting will process the actual refund via a check request -- that need only be signed by the Controller, since all pertinent approvals will be on the attached form.

8. Any and all guest correspondence pertaining to advance deposits must be routed through the Reservation Office. Any and all problems or "opportunities" arising from the advance deposit controls and procedures should be brought to the attention of the Accounting Office Management.

   
   

ADVANCE DEPOSIT LOG

Date of Arrival I Date of Receipt I Guest Name I Receiver Signature I Confirmation Number I PMS Number I Form of Payment I