Beruflich Dokumente
Kultur Dokumente
SOURCES OF REVENUE:
Room sale
Food & Beverage sale at Bar, Restaurants, Banquets & InRoom Dining Minor Operating Department revenues Laundry
Business Centres
Internet & Telephone Spa, Health Clubs & Beauty Parlours
Miscellaneous through Scrap sales, Retention money recovery, Rental income, Staff Cafeteria sales, Incentive Income etc.
Cheque
Purchase Manager
In-Charge Units de-centralized Procurements and co-ordinating with HDHQ for centralized purchases
INCOME FUNCTION: 1. Sale Reconciliation and Accounting 2. Discounts (Allowances) 3. Service Charges & Tips 4. Sheraton Fees Payments 5. Loyalty Programmes
6. Taxation
7. Day & Night Audits 8. MIS Reports & Others
Taxes charged in the folios viz. Service Tax, VAT, Luxury Tax etc.
Tips and Service Charges Collections figures through Cash / Credit Cards
iii. On the basis of this, an excel sheet is updated daily for generating the total sale as on any given day. iv. At month-end, the consolidated sale figure of the month is sent to Finance Team (part of Payables Team) so as to create the monthly Sales Journal in FINTRAN.
v.
CR. VAT
CR. Luxury Tax CR. Service Tax CR. Excise Duty
DISCOUNTS (ALLOWANCES)
(A) Front Office Allowances:
These allowances are passed by Front Office at the time of Guest Stay or Check-out. These are primarily on account of charges being waived off from a Guest Folio on account of Discounts, Service Recovery etc. These Allowances are posted into CLS by the Front Office as and when they are passed. After the Night Audit, the auditor hands over the Front Office Allowance vouchers and the Daily Charge Summary to Income Department Thereafter, Income Department Reconciles the Voucher with the Summary and plots the individual types of allowance in an excel
At month-end, the aggregate of the month is sent to Finance Team for posting the entry into FINTRAN
Banquet Tips
Outlet Tips
Entry Passed for accounting of Banquet Service Charges are as follows (i) At the time of Charging the Service Charge in the Banquet Check
DR. City Ledger CR. Service Charges
This entry is transferred to FINTRAN at month-end. At the time of encashing the Cash Folio, following entry is passed in FINTRAN
DR. Tips CR. Cash / Contingent Fund
Hence, at Month-end, the Tips Account shows a NIL amount due, considering total encashment of the Cash Folio Vouchers.
Procedural Requirements inter-alia include Starwood Audits, Report on Estimated Gross Room Sales and Agreed Room Sales at the beginning of each calendar quarter and its corresponding fees payable, CA certified report showing Gross Room Sales and Agreed Room Sales at the end of each fiscal year etc.
Type of Fees License Fees Sales & Marketing Fund Contribution Base Reservation Fees SPG Fees (for Loyalty Programmes ) Reservation Fees Fees for Room
Service Tax
Note: The above Taxes related to the Sheraton Fees are transferred by way of Debit Notes from HDHQ
LOYALTY PROGRAMMES
Hotels have various Guest Loyalty Programmes which are managed by HDHQ or Starwood. Some of them are as follows:
1. 2. 3. WelcomAward Member accumulates points on the basis of
stay at the Participating properties
4. 5.
Note: Forthcoming Slides on Loyalty Programmes exclude Culinary Plus. The Discounts under Culinary Plus Scheme are borne by the Unit.
WelcomeLink, WelcomAward, Jet Miles and Kingfisher Miles Revenue updation (Points Earning):
Whenever a Reservation is received from a WelcomLink/ WelcomAward/ Jet Miles/ Kingfisher Miles member, the membership number is captured in CLS. On a daily basis, the WelcomLink/ WelcomAward/ Jet Miles/ Kingfisher Miles Materialisation Report is updated in CLS such that it gets seamlessly transmitted to the centrally operated Content Management System (CMS) so as to centrally credit points to the respective members by HDHQ In case of any discrepancy, for e.g., where a member has directly advised HDHQ that no points have been credited to his / her account for a materialised stay, then a Discrepancy report is generated in CMS containing the details of this stay. This report is then extracted and the revenue details are uploaded into CMS after confirming the stay through the internal records. For a WelcomLink member, the Room Revenue (before Taxes) are uploaded, and for others, Room, F&B and incidental revenues are uploaded so as to credit the points to the member centrally by HDHQ.
(ii) When HDHQ subsequently sends the debit note for the same
DR. City Ledger Account
CR. HDHQ Trading Account
In case the Invoice Amount is more than the amount uploaded, for e.g., when a member has directly advised Starwood that no points have been credited to his / her account for a materialised stay, then the same is mentioned in the months Invoice. This is reconciled with Internal records to verify the correctness of extra claims. (i) Hotels pass the following entry every month-end for providing the above
DR. Sales Account CR. Provision for Expenses - SPG (5% of Eligible Revenue)
(ii) When HDHQ subsequently sends the debit note after the payments
DR. Provision for SPG CR. HDHQ Trading Account
Redemption of Points:
The points earned by members can be redeemed in the following ways Gift vouchers (WelcomAward / WelcomLink) Complimentary Vouchers (WelcomAward / WelcomLink) Settlement of Room charges (SPG Members) Treatment of the above are as follows
Type of Redemption Treatment Gift Vouchers Recovered from HDHQ Complimentary Vouchers Allowanced Off / Borne by the Unit Settlement of Room Charges Recovered from Starwood
2.
3.
Units process the Award Redemptions through SPG Link on a frequent basis
On logging into the SPG Link, it displays the various SPG Guests who have redeemed the Awards in a selected date range. The list is verified through Check-out folios of each of the SPG guests and the verified entries are redeemed by ticking the corresponding check-boxes. For the amount equivalent to the award redeemed by the member, Starwood reimburses the value on category of room basis netting off the invoice sent for the 5% SPG Fees for crediting membership fees. HDHQ pays the net amount to Starwood and sends a Net Debit Note to the units
Procedural Requirements:
Every Quarter, Unit gets the net payables to Starwood (net of 5% SPG Fees and Award Redemption) certified by a Chartered Accountant. The certificate is on the basis of verification of internal records of the hotel and the invoice received from Starwood. This certificate is sent to HDHQ to make the payments After payment as per the certification, HDHQ sends a Debit note for the Net Amount paid.
TAXATION
Various Taxation Statutes applicable to the hotels is as follows 1. Service Tax
* Not Covered in the forthcoming slides as specific to Delhi. At ITC-Maurya, Entertainment Tax is being levied on tickets sold for entry into Dublin.
Service Tax
Service Tax is levied and paid on accrual basis on the following services
1. 2. 3. 4. 5. 6. 7. 8. 9. Rent-A-Cab Services For Hotels Cars used by the Guests Mandap Keeper Indoor Banquet Services Short Term Accomodation Rooms Renting of Immovable Properties Shop Rents Internet Food & Beverage A.C. Restaurants Dry Cleaning Beauty Parlour and Health Club & Fitness For Beauty Parlour, Spa and Gym Banking & Other Financial Institution Service On Incentive by Thomas Cook
10. Business Auxilliary Service At Maurya for Tower Club usage 11. Sponsorship Service 12. Goods Transport Agency For freight paid 13. Advertising Space or Time For Show Window Rental 14. Membership for Clubs Earlier charged on Culinary Plus Memberships
Less: Add:
Less:
Add: = Less: =
Luxury Tax
Provisions of Luxury Tax Act & Rules are state specific At ITC Maurya, Luxury Tax is paid on Accrual basis on the Rack Rates of the room occupied Computation of the Taxable Turnover is as follows:
Total Room Turnover of the Hotel (On the basis of Rack Rate in case of ITC Maurya) Exempt Turnover Less: (viz., Rooms occupied by Diplomats etc.) = Net Turnover Liable to Tax
VAT
Provisions of VAT Act & Rules are state specific VAT (as applicable in ITC Maurya) is payable on the following sale Food & Beverage Sale at Outlets, Banquets, In-room
Staff Cafeteria & Bakery Sale
Scrap Sale, Sale to employees of discarded hotel items etc.
Less: Add:
= Less: =
Excise Duty
Excise Duty is payable on the Bakery Items and handled by F&B Controls.
Excisable Bakery Items are sold/offered to Guests at following areas
Confectionery Shop Restaurants either menu-based or in buffet Staff Bakery Banquets & other complimentaries (viz., Chocolates as a part of rooming etc.)
As excise is levied on production, Duty is paid on the basis of transfers out of Bakery (net of transfers back) to each of the above areas. The menu sale price is considered for excise duty irrespective of the price at which the sale takes place, the rates of duty being the following
Chocolates 10%
Other Bakery items like Cakes, pastries, muffins, waffles, doughnut etc. 5%
Home-made ice-creams & kulfi 1%
Thereafter, a Days Excise Invoice is prepared as per Excise Rule 11 At month-end, Duty is paid / advance duty adjusted and ER-I submitted
DAY AUDIT
Checking Bills-On-Hold report and review the status and reasons Preparing the High Balance Report ( for in-house guests with due settlement above Rs.25000) and send further for circulation to Morning Meeting members for taking a decision on requesting part settlement from guests Comparison of Rates charges vis--vis the Rack rates. Where the rate charged in lower than Rack rate by 50% or more, a report of such cases with reasons of discounts is circulated to Front Office Manager and subsequently to GM for ratification Checking whether PAN is available for all the guests who have settled in cash for an amount more than Rs.25000 Reviewing the rate masters in CLS in regular intervals on the basis of CVGR agreements Checking whether approved complimentary forms are available for the complimentary rooms given Reviewing the Front Office Allowances passed
CREDIT FUNCTION: 1. Bill Verifications and Dispatch 2. Follow-ups & Collections 3. Credit Card Transaction Reconciliation and Payments 4. Credit Card Charges 5. Travel Agent Commissions
Others 2%
On the basis of this allowance, credit is passed into the City Ledger of the individual Banks so as to reduce the receivable.
After receiving the money from Bank for the net amount, only the Service Tax remains in the City Ledger Account which is adjusted cumulatively at month end.
At month-end, the aggregate allowance is used to charge as expense of Credit Card Charges Month-end Entry for Charging off Expensing is as follows
DR. Expenses Credit Card Charges CR. City Ledger Bank
No-show Recoveries
As per
Room Advance as per various Rate Plans / Part Settlement by in-house guests Beauty Parlour For Service Packages availed by Guests
These advances may be received in Cash/Credit Card Swipe/Cheque. (In case the Guest provides the credit card details, advance is recovered through EDC Machine at credit department.) Separate Receivables Account (referred to as D.B.Account) in CLS is maintained for each such type of advances. After the money is received from the party, Receipt is done in FINTRAN by Finance Team, on the basis of which a Credit Sheet is sent to Credit Team for passing on the credit to respective D.B.Accounts. For e.g., if a guest has paid an advance for Banquet Function booking, Credit will be given to D.B. Account Banquet Advances.
Thereafter, at the time of settlement of the final receivable from the guest, the credit from the common D.B. Account is transferred to the Guests D.B. Account.
Accounting Entries of Advance: (i) When the advance amount is received, entry passed in FINTRAN is as follows:
DR. Cash / Bank A/c CR. City Ledger Account (For the above, Credit is passed in CLS to City Ledger of the respective Advances)
(ii) When the sale has taken place and settlement of the check is done, no entry is passed in FINTRAN. However, Credit from City Ledger of Advances is transferred to the City Ledger of the guest.
MIS & Others 1. MIS on Indirect Foreign Exchange 2. Monthly reconciliation of Accounts and Accounts Receivable with Trial Balance. 3. Maintaining of Shop Agreements & processing License Fee
4. Internal Sale
THANK YOU