Finance Department

Standard Operating Procedure

Update: 15.08.08 CO-FI-SOP-Index

Hotels & Resorts Finance Department SOP Index

Code Topic

Finance Department

1. CO-FI-SOP-001 Receiving of Goods

2. CO-FI-SOP-002 Advanced Payment
3. CO-FI-SOP-003 Cash Float Handling
4. CO-FI-SOP-004 Credit Card Commission
5. CO-FI-SOP-005 Petty Cash
6. CO-FI-SOP-006 Purchasing Procedures
7. CO-FI-SOP-007 VAT Sales
8. CO-FI-SOP-008 Handling of Travel Agent Set Menu Payments
9. CO-FI-SOP-009 Officers Check
10. CO-FI-SOP-010 Store Requisition Form

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 Finance Department

Standard Operating Procedure

Update: 15.08.08 /CO-FI-SOP-001

Receiving of Goods

Objective

This SOP is to ensure that the quantity and quality of the materials or goods received are in
accordance with the required specification stated on the Purchase Order.

Responsibility

Receiving clerk / Storekeeper

General Instruction

All suppliers are to be instructed to deliver all goods to the receiving area.
Supplier must deliver all goods within an agreed time frame stated by the Hotel/Resort.
Before accepting any goods, the Receiving Clerk, and/or Store Keeper has to ensure that the
purchases are supported by approved purchase orders. No orders, no deliveries.
Suppliers must be instructed to submit delivery notes (with completed and correct pricing
details) together with goods. Supplier should be instructed that no invoice is paid unless they
have copies signed by authorized personnel. In case the Hotel/Resort does not receive
necessary copies of the suppliers invoice or delivery orders, the receiving clerk must arrange the
necessary number of photo-stat copies.
The receiving clerk should receive information regarding price of items purchased in order to
facilitate Food and Beverage inventory control and Food/Beverage cost recording so that
inventory record can be up-to-date and daily Food and Beverage report can be produced on
a timely basis.

Procedure

The receiving clerk must inspect the goods received by counting each item and/or carefully
weigh and cross-check against the specification contained in the respective purchase order, by
invoice/delivery order accompanying the delivery. Depending upon goods being received, the
Department Head may be requested to inspect the quality of goods and reject items not
meeting the purchase/quality specifications.
For perishable food items; on examination where signs of deterioration is noticed, products are
to be rejected, by visual examination or in some cases by date stamps used by vendors.
After checking of goods by the receiving clerk, all invoices or delivery notes must be signed and
rubber-stamped to show that the goods have been checked and accepted.

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 Finance Department
Standard Operating Procedure
Update: 15.08.08 / CO-FI-SOP-002

Advanced Payment

Objective

This SOP is to establish the procedure for income auditing to ensure that all revenue occurred in every
outlet is posted completely, corresponding to the proper category of revenue.

Responsibility

Income Auditor / Assistant Revenue &Credit Manager

Procedures

All advances requested need to be approved by authorized personnel.

All advances require receipts.
Travel advance require travel expense report, accompanied by receipts. The Travel Expense
Report is intended to reflect a full accounting of the trip taken so that future trips can be
properly budgeted.
If a travel advance is received, travel Expense Form is due no later than 5 business days,
following the return from the trip.
In case of advances for purchasing supplies, the counting of 5 business days begins with the
date following the reported reason for the advance.
No advances are issued to any person who has outstanding advances.
Receipts for credit card bills must be attached to the credit card statement.
If per diem rates are used in connection with travel, no receipts are required.

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 Finance Department
Standard Operating Procedure
Update: 15.08.08 / CO-FI-SOP-003

Cash Float Handling

Objective

This SOP is to ensure, departments receiving cash float are aware of the related responsibilities and
required procedures.

Responsibility

All cashiers and anyone who handles cash float.

General Instruction

A cash float is only issued to/by the revenue centre unit.

The cash float must be kept in a secure, locked place under the control of cashiers or the
persons who handle cash floats.
The float can not be used for any other purpose, such as personal loans, purchases, salaries and
wages etc.

Procedure

Before every shift, all cashiers have to count the cash float received/prepared by the Chief
Cashier or any other designated associate.
At the end of shift, all cashiers must count and send the cash float & revenue to the designated
person/place such as to the Chief Cashier or the Safe Deposit Box.
The count result of cash float & revenue is reported in the cash count report corresponding to
each point of sales. The name of person on that shift also needs to be reported. The cash on
hand must be balanced with the cash of the point of sales and house fund.
In case of missing cash or shortage, the Chief Accountant is to investigate and report directly to
the Financial Controller and General Manager; the respective shift can thus not be closed until
all revenue/cost centres are balanced.

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 Finance Department
Standard Operating Procedure
Update: 15.08.08 / CO-FI-SOP-004

Credit Card Commission

Objective

This is to ensure that the amount of credit card commission, posted to General Ledger, is correct and
VAT for credit card commission are claimed as VAT purchase.

Responsibility

Assistant Revenue & Credit Manager or designated personnel

Procedure

The designated person will summarize the amount of credit card commission and VAT purchase
from the Tax Invoice received from the credit cards company or bank by month end.
Upon receiving of the Tax Invoice from the credit cards company or bank, it needs to be
reconciled with all supporting bank statements to ensure that the Hotel/Resort receives all Tax
Invoices for every credit card payment transactions.
The total amount of credit card commission and VAT purchase is posted to the General Ledger
under the credit card commission and VAT purchase account code at the end of month.
All Tax invoices are sent to an outside accounting company for accounting and tax record.

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 Finance Department

Standard Operating Procedure

Update: 15.08.08 / CO-FI-SOP-005

Petty Cash

Objective

This SOP is to ensure that the person responsible for petty cash is aware of the related responsibilities
and required procedures.

Responsibility

Petty cash holder/Custodian

Procedures

Petty cash fund is kept in a locked, secure place.

Access to the petty cash fund is restricted to petty cash holder and a back-up person.
Petty cash is disbursed only by the petty cash holder (or a back-up person in the custodian's
absence).
To disburse petty cash, original receipts are required. For reconciling, the receipts in the petty
cash fund box are to be maintained.
The person to be reimbursed should indicate on the original receipt all items purchased (if not
obviously stated on the receipt), the business purpose, and department to be charged.
The original receipts are approved and signed by an appropriate, authorized individual, such as
the Supervisor of the person to be reimbursed.
The petty cash fund is not used for personal expenses, personal loans, or the cashing of personal
checks.
The petty cash holder is responsible for regularly reconciling the petty cash fund (the sum of
cash, plus original receipts, plus any other outstanding reimbursements is equal the full, original
amount of the fund.)
Periodically, unannounced spot check counts of the petty cash fund are performed by
someone other than the petty cash holder, such as a Supervisor/Chief Accountant.
In the event of an unexplained petty cash shortage, petty cash holder or a back-up person is
responsible for the shortage. This also needs an investigation by his/her Supervisor and the Chief
Accountant or Financial Director.

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 Finance Department
Standard Operating Procedure
Update: 15.08.08 / CO-FI-SOP-006

Purchasing

Objective

This SOP is to ensure, having strong internal controls applying to procurement and cash disbursements
relating to purchasing activities and to ensure that all purchasing of goods and services of any nature
is processed through the Purchasing Department in accordance with established guidelines.

This SOP is to ensure that requests for goods and services is made by the appropriate person and is
properly approved by the management according to the Company guidelines.

This SOP is to ensure that payments are made only for goods and services which are properly
authorized and received.

Consistency in control of
Quality
Freshness
Price (season)

Advantage
Save storage space
Prevent spoilage

Food items
Fresh vegetables
Fruits
Herbs, Spices, Condiments
Meat, poultry
Fish, Seafood
All import products (expensive items)

Scope and Responsibility

The Purchasing Policy and Procedure apply to all the departments and represents the minimum
requirements towards the achievement of the Hotel/Resort objectives. All employees are responsible
for compliance with the applicable policy and procedures.

Procedure

1. Purchase Requisitioning

Departments are responsible for initiating the purchase of goods or services required. The
person who authorities the requisition should ensure that the items to be purchased are
necessary for the departments operation and are within budget.

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 Finance Department
Standard Operating Procedure
Update: 15.08.08 / CO-FI-SOP-006

Purchasing

The requests of goods and services is made by the requesting departments that have to
consider the following information:

1. Adequate quantities (to meet PAR level)

2. Reasonable prices
3. Timely receipt
4. Desired quality
5. Transportation costs involved
6. Applicable VAT
7. Purchases within budget
8. Approved by authorized person according to Company limit

There are three ways for an operating department or storekeeper to initiate a purchase of
goods or services:

1. Raise a Purchase Requisition

2. Raise a Daily Market List (Pre-printed form)
3. Apply for petty cash

A purchase requisition is prepared for all non-food items. Purchase of food items are handled by daily
market list. A purchase order is made according to the requisition.

The person in the department who has responsibility for raising requisitions prepares a pre-
numbered purchase requisition stating the following details:

1. Department name
2. Date
3. Required delivery date
4. Place of delivery
5. Description of goods or service and quantity required
6. Price (if known)/ Applicable discount negotiated
7. Reason for purchase
8. Special instruction (of any)

The authorized person (Usually the department head) should review the items requested to
ensure that they are necessary for the departments operation and that are within the approved
budget before signing the Purchase Requisition as evidence of approval.

The Purchase Requisition is distributed as follows:

Original Finance Department, to be attached to the Purchase Order for matching with the
payment supporting document
2nd copy Purchasing Department, filing in numerical order, for reference on purchasing
3rdcopy Requisition/Department, for filing and follow-up of purchase

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 Finance Department
Standard Operating Procedure
Update: 15.08.08 / CO-FI-SOP-006

Purchasing

2. Purchasing

Requisition for purchases must be reviewed to ensure that the amount of requisition is within the
Company approval limit.
Purchase order is used at all times, showing quantities, prices, payment and shipping terms.
Competitive bids or quotes are obtained prior to placing orders and documentations is to be
maintained to show that competitive bids were obtained.
Its the DHR policy to negotiate for discounts, for product quantities/amount exceeding a
certain figure agreed as per Hotel/Resort policy.
Its the DHR policy to obtain a minimum of three (3) quotations prior to submission for a Purchase
Order. In selecting a supplier, purchasing has a short list of three potential suppliers. After
obtaining quotations from the potential supplies the purchasing personnel must prepare a price
comparison.
The purchase personnel must review the offers and select the supplies based on the criteria set-
out. During the review of quotations they should consult with the Purchasing Manager to ensure
that the best offer is selected. The purchasing personnel, after selection of the supplier, may ask
the selected supplier for discount or better terms of payment, if possible.

The selection criteria which should be applied in vendor selection are as follows:

1. The VALUE FOR MONEY of the materials or goods from the suppliers
2. The QUALITY of the offer compared with those at a lower price
3. The PERFORMANCE of the supplier in terms of punctuality of delivery, after-sales-service,
and cooperation with the company

After selection of the supplier, the purchasing personnel should place the order with the supplier.
The Purchasing Manager is responsible for issuing purchase orders, They are to be issued in a
numerical sequence stating the following details:

1. Date of Purchase Order

2. Vendors name and address
3. Description of items to be purchased
4. Quantity
5. Unit price
6. Amount, VAT, Discounts
7. Purchase Requisition reference
8. Terms of payment
9. Date of delivery
10. Delivery address

The approval of purchase orders is made on running number of purchase order form, reviewed
for correctness and approved by the authorized person who has such authority to act on behalf
of the Company guidelines (usually to Financial Controller and General Manager/or the
designated person).

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 Finance Department
Standard Operating Procedure
Update: 15.08.08 / CO-FI-SOP-006

Purchasing

3. Monitoring of Delivery

The Purchasing Department is responsible for monitoring delivery to ensure that the supplier
delivers the goods according to the schedule stimulated in the purchasing order.
The Purchasing personnel should perform a review of all the outstanding orders, including
partially filled orders on a daily basis or more frequently as operational needs to expedite the
delivery.

The purchase personnel keeps departments informed of delivery dates. This is to enable them to take
any corrective actions if delivery cannot be made.

Market List Sample:

Supplier. Order date:.

Tel:. Delivery date:.
Fax:

Item Price Unit Received Item Price Unit Received

Unit Order Unit Order

Vegetables Pork
Asparagus Fillet
Broccoli Neck
Carrots Belly

Condiments Chicken
Bean Cured Hip
Pickled Ginger Breast
Wings

Fruits
Water Melon
Seafood
Pineapple Prawns
Papaya Squid
Snapper

Herbs
Basil hot
Basil sweet

Signature __________________

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 Finance Department
Standard Operating Procedure
Update: 15.08.08 / CO-FI-SOP-007

VAT Sales

Objective

This SOP is to establish the procedure for issuing official tax invoice and tax invoice (abbreviation) and
to do VAT sales report to conform to the Revenue Departments regulation.

Responsibility

Income Auditor/Account Receivable Officer/Assistant Revenue &Credit Manager

Procedures for Issuing Tax Invoice

Official Tax Invoice

Official Tax invoice is issued to Travel Agency/Tour Operator or Guests who request for Official
tax Invoice.

To conform with the Revenue Departments regulations, the details needed to be in the Official
Tax Invoice are as follows:

1. The wording Tax Invoice

2. Tax Identification Number of seller/service provider
3. Name and address of seller/service provider
4. Name and address of buyer/service receiver
5. Running Number of Tax Invoice
6. Date of issuing Tax Invoice
7. Type of goods or service i.e. accommodation, food& beverage
8. VAT value

At least 1 original and 1 copy of the Official Tax invoice is needed.

Official Tax invoice is issued when the payment is received and the payment amount is already
paid-in to the bank account. The date on the official Tax Invoice is the date the Hotel/Resort
receives the payment.

The correction or re-writing in an Official Tax Invoice is prohibited.

Type of payment (by cash, credit card, or cheque) needs to be specified.

Cashier/Bill Collector is to prepare the Tax Invoice and must sign his/her name on it.

Official Tax Invoice (Original) is sent to the Travel Agency/Tour Operator by post on the next day
after the Hotel/Resort receives the payment. The copy is kept in Monthly VAT sales file.

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 Finance Department
Standard Operating Procedure
Update: 15.08.08 / CO-FI-SOP-007

VAT Sales

Tax Invoice (Abbreviation)

Tax Invoice (Abbreviation) will be issued in case of cash or credit card payment by guests who
do not request for Official tax Invoice. This is considered a selling to retail guests.

To conform with Revenue Departments regulations, the details needed to be in Official Tax
Invoice are as follows:

1. The word Tax Invoice (Abbreviation)

2. Tax Identification Number of seller/service provider
3. Running Number of Tax Invoice
4. Date of issuing Tax Invoice
5. Type of goods or service i.e. Accommodation, Food& Beverage
6. Total amount , which indicates that this price is VAT included

Tax Invoice (Abbreviation) will be issued after we summarize VAT sales from tax Invoice
(Abbreviation). The copy will be kept in Monthly VAT sales file.

Tax Invoice (Abbreviation) is not needed to be sent to anybody. But, it needed to be issued
according to Revenue Departments regulations in order to be an evidence of goods selling or
service providing.

Procedures for Preparing VAT Sales report

VAT Sales Report

To conform with the Revenue Departments regulations, the details needed to be in Official Tax
Invoice are as follows:

1. The word VAT sales report

2. Month and year
3. Tax Identification Number
4. Company name
5. Business name
6. Specific whether it is head office or branch
7. No. of Tax Invoice
8. Buyers name
9. Amount before VAT
10. VAT value
11. Total Amount

It is separated into 2 sections:

1. VAT sales from Tax Invoice (Abbreviation)

2. VAT sales from Official Tax Invoice

Each of them will be running number separately.

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 Finance Department
Standard Operating Procedure
Update: 15.08.08 / CO-FI-SOP-007

VAT Sales

VAT sales file is comprise of:

1. VAT sales report

2. Copy of Official Tax Invoice
3. Copy of Tax Invoice (Abbreviation)

VAT sales amount will be reported together with VAT purchase amount to Revenue Department
within the 15th of next month by using the PP.30 form.

VAT sales from Official Tax Invoice

VAT sales from Official Tax Invoice are summarized from Official Tax invoice which is issued to
Travel Agency/Tour Operator or Guests who request for Official tax Invoice.

The procedures to summarized this are described as follows (depending on Accounting

Software used), i.e.:

1. Go to Carmen Inventory Program

2. Select Account Receivable Module
3. Go to Report
4. Select Account Receivable
5. Select Transaction Summary
6. Select Preview Report
7. Select Date from & to, Order by account code, View by detail, ok
8. Summarize only bank payment transaction (Payment by Travel Agent/Tour Operator)
9. Cross check with Official Tax Invoice (Copy) issued

VAT sales from Tax Invoice (Abbreviation)

VAT sales from Tax Invoice (Abbreviation) are summarized from the amount of cash and credit
card payment by retail guests at each outlet and front office.

The procedures to summarized this are described as follows(depending on Accounting Software

used), i.e.:

1. Go to Amadeus System
2. Select Accounting (from Tool bar)
3. Select Journal, then Posting Journal
4. Select date from &to, then GO
5. Summarize only transaction payments which are cash and credit card, then export to
excel file.

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 Finance Department
Standard Operating Procedure
Update: 15.08.08 /CO-FI-SOP-008

Handling of Travel Agent Set Menu Payments

Objective:

This is to ensure the correct handling of all travel agent-related payments in regards to set menu
payments.

Procedures:

1. Meal contracts are issued to domestic agents.

2. Clients receives voucher by direct payment through agent.

3. Client hands voucher to outlet manager/ associate.

4. Cashier cross-checks the voucher of its validity (by using an internal confirmed travel agent list).

5. Client receives set menu.

6. Cashier issues a manually-written statement without using prices for the set menus by using the
correct name of set menu and number of person(s)
- Payment will state only beverage payments with applicable service charge and tax
- Cashier logs all vouchers received by guests for recording purpose

7. Guest makes direct or credit card payment to outlet for the beverages.

8. Cashier posts respective set(s) and correct number of person(s) into POS including discount.

9. Accounting Department issues a tax invoice to respective agent with listed net price after
discount with confirmed person(s) dined at the restaurant and attached original voucher(s) of
respective agent.

10. Original invoice is faxed or personally sent to all agents on a weekly basis by noticing the agents
beforehand to prepare the payment.

11. 7 days credit is given as contracted to complete the payment by bank transfer or cash
payment.

12. If agent does not pay within 7 days, credit is extended to 14 days, if agent is over limit at this
point no bookings are accepted.

13. If agent does not pay after 14 days, bookings of respective agent are rejected until agent
makes payment of the entire outstanding amount.

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 Finance Department
Standard Operating Procedure
Update: 15.08.08 /CO-FI-SOP-008

Handling of Travel Agent Set Menu Payments

Process Diagram:

Start of process

Contract issued to domestic agent

Clients receive voucher through agent

No
Cashier cross-checks validity of voucher Invalid voucher is rejected:
Apologize to guest and ask to dine a la carte offering
an FOC aperitif

Client receives set menu at outlet

Yes No

Issue manually written statement w/o set Cashier records voucher Follow STD
menu price, incl. beverage consumption, service
service CH & taxes sequence

Client makes direct or cc payment Cashier posts set in POS End of process

Accounting Department issues tax invoice: Inform agent to prepare

- Incl. net price after discount payment
- Attached original vouchers
- Number of person
- Type of Set menu
- Date/ Time/ Outlet/ Signature/ Stamp

Sent fax Make personal visit

Date after received invoice, 7 days credit to Agent does not pay Extend credit to 14 days
complete payment to complete payment

Agent pays by cash or bank transfer

Agent does not pay

End of process Depending on outstanding amount (Limit: THB 20,000)

Stop accepting bookings until agent pays

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 Finance Department

Standard Operating Procedure

Update: 15.08.08 / CO-FI-SOP-009

Officers Check

Objective

This SOP is to outline the procedure and policies of Officers check and to ensure that all departments
concerned adhere to it strictly.
It is further a benefit for Assistant and Head of Departments and to check the quality of the Food &
Beverage service.

Responsibility

Beneficiaries, F&B service associates, Cashier, Income Auditor

Policies

Officers check privileges are assigned (with a specific amount) to certain members of the
management of the Hotel/Resort.
The Officers check of the restaurant is issued with sales prices, but the Officers check is
accounted as per cost price.
The Officers check privilege is an integral part of the management member package/benefit
and for their use at their sole discretion.
The management can use the benefit during both working hours and non-working hours and
should prevent to use this benefit during peak times.
During duty hours responsible management can not order alcoholic beverages, however after
working hours as long as it is not excessive, they can.
The management can order take-away.
The management can invite a friend or family member as long as the amount does not exceed
the monthly F&B allowance.
In case of over credit; Finance Department charges the beneficiary sales prices.

Procedures

F&B Server/Captain/Manager has to issue a Captain Order, to be attached with the Officers
Check each time.
The management who uses the Officers check must sign it within the same day. If there is no
signature, the amount it will be charged to the City Ledger.
Cashiers at each outlet have to send all Officers checks to the Income Auditor/Cost Controller
after shift closing. At the night time, all OC are sent to its respective place.
Officers Check Report must be forwarded to the General Manager daily for acknowledgement.
Income Auditor has to issue a monthly summary of all Officers checks for each person and
forward to the General Manager accordingly.
For Management member(s) who uses this benefit over limit; the Income Auditor is to inform the
management respectively, the associate has to pay and balance his/her allowance the
following month.

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 Finance Department
Standard Operating Procedure
Update: 15.08.08 CO-FI-SOP-010

Store Requisition Form

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