293931 53213 Hotel Industries an Overview

7/30/2019 293931 53213 Hotel Industries an Overview

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Complied By CA Brijesh Vithalani 1

Hotel Industry

An Overview


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Technical Aspects of Hotels

Rooms

Food & Beverages

Foreign Exchange ComplianceMarketing Department

Technological Change

Decision regarding adoption of recentTechnologies and Facilities and

Infrastructure of the Hotel


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Technical Aspects..

ROOMS

Front Office

Bell Desk

House Keeping General Administration


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Technical Aspects..

ROOMS

Front Office

Responsible for making advance booking & reservation

They prepare booking list for next day, Room rent to be

charged after discount, Airport pick-up statusFill up registration card at front office

House keeping department prepare a guest count report

and send to front office and reconcile e.g. Extra bed

requisitionSending of list of check outs to all department

Allowances (discount)


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Technical Aspects..

ROOMS

Bell Desk

Bell Captain

Bell Boy

Small Baggage


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Technical Aspects..

ROOMS

House Keeping

Supervise cleaning of guest rooms etc.

Inventory in the house keeping linen in four

set

(1)Room

(2)Laundry

(3)House keeping Store

(4)Main Store


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Technical Aspects..

ROOMS General Administration

Pricing of Rooms

Revenue can be maximise by optimising Average Room Rent

and Average Occupancy

Where,

Average Room Rent = Total Room Rent

No. of Night Sold

Average Occupancy = Total No. of Night SoldTotal No. of Night Available


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Technical Aspects..

ROOMS

General Administration

Night Audit

Night auditor confined merely to ascertain that all charges

appearing in departmental sales summary have been

correctly charged to customer folio

Cash Float

Each cashier hold minimum cash balance, Largest cash held

by general accountant in account department and next by

front officePaid Outs

Payment on behalf of guest


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Technical Aspects

FOOD & BEVERAGES

Kitchen

Banqueting

Restaurant

Bars

Room Service

Stewarding

Stores


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Technical Aspects

FOOD & BEVERAGES

Kitchen

Components of Food Preparation

Control Over Raw Materials Cost

Food Preparation and Serving of Food


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Technical Aspects

FOOD & BEVERAGES

Kitchen

Components of Food Preparation

Perishables

Provisions


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Technical Aspects

FOOD & BEVERAGES KitchenControl Over Raw Materials Cost

Purchase of Raw materials Annual Fixed Price Contracts

Rate fixed by purchase committee comprising therepresentative of the purchase department accountsdepartment and administration department

Ordering for Perishables and ProvisionsGenerally ordered on afternoon of previous day

Basis of OrderingRequisition from the head chef.

Receipts, Storage and Issue of a Raw MaterialsRejection if any are usually made immediately

Daily Receipts Register is to be maintained


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Technical Aspects

FOOD & BEVERAGES

Kitchen

Food Preparation and Serving of Food

Standard RecipesHelps in balancing Taste and Cost

Portion Control

Standard quantity to be served per dish

Menu Costing

Like price fixing

Wastage Report

Food could not serve next day

Wastage should be reported - It is an indicator of an efficiency


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Technical Aspects

FOOD & BEVERAGES

Banqueting

The major source of revenue is considered to

be sale of Food and Beverages

Plate Count is crucial aspect


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Technical Aspects

FOOD & BEVERAGES

Restaurant

Pricing of Off-Menu Items

Cancellation of bills is require to approve by

Restaurant Manager and duly defaced on bill

book


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Technical Aspects

FOOD & BEVERAGES

Bars

While Wine and Beers are sold in bottles,

spirits are also sold in pegs

Excise Record

Mixing of Drinks for Cocktails

Physical Verification at the Bar


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Technical Aspects

FOOD & BEVERAGES

Room Service

Obtaining guest signature on the bill


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Technical Aspects

FOOD & BEVERAGES

Stewarding

Responsible for maintaining stocks of cutlery

and crockery

Physical Verification

T h i l A t


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Technical Aspects .

FOREIGN EXCHANGE

COMPLIANCE

Issue encashment certificate to travelers regarding

travelers cheque and foreign currency

Submit a report to RBI


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Technical Aspects .

MARKETING DEPARTMENT

Take strategic decision regarding

Brand Image

Devising off season Packages

Holiday Food Festival

Sponsoring social event etc.


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Accounting and Control Aspects

Books Normally Maintained

Peculiar to Hotel Industry


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Complied By CA Brijesh Vithalani22

Books Normally Maintained

General Ledger

Cash Book, Bank Book, Purchase andExpenses Register

Journal

Debtors Ledger, Creditors Ledger

Stock Ledger Payroll Summaries

Fixed Assets Register


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Peculiar to Hotel Industry

Sales summaries of variousoperating department

Restaurant

Health Club

Allowance Register


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Recognition of Revenue

Room Revenue Accrual Basis

Classification of Fixed Assets e.g. Bath roomfittings are plant and machinery

Cutlery and Crockery Cutlery and Crockery

changed to revenue account when issued forstewarding department Allowances Allowances arise due to an error in

billing or due to guest complaint should not beincluded

Bills on Holds Either in case of Late charges or

Skipping . Provisions for doubtful debts at the endof year Bar Inventory Daily Basis, Destroying empty

bottles immediately


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Internal Control System

System is designed in such a way that Noperson in the organisation is able to controlactivity from beginning to end

The work of one employee is madecomplementary to that of another in a way

that work of one gets verified automatically There are four main parts of Internal Control

System

(1)Sales

(2)Purchase

(3)Cash

(4)Debtors


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Internal Control.SALES

Granting Discount Approved By Management

Complimentary Room Should be given in exceptional

circumstances

Permitting occupancy of a roombeyond the normal hours Should have clear-cut guideline of waiver

Granting Allowances Approved Appropriately


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Internal Control.SALES

Guest Billing Charges are billed at counter of outlet providing

services

Restaurant and Bar Rotation of duty of stewards and cashier Copy of the Kitchen Order Ticket (KOT) match

with F&B ledger

Banqueting

Collection of advance Rates and granting discount

Plate Counting


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Internal Control.PURCHASE

Annual Rate Contracts

Formal documentation

Award contract to lowest quotation

List of approved supplier to bemaintained

Numbering of Purchase Order

Formalised Indenting (requisition)System

Authority for indenting (requisition)

Proper control over serial number ofindents


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Internal Control.PURCHASE

Monitoring Stock

Re-order level, Order Quantity,Maximum and minimum stock

Stock records should be maintain onregular basis

Receipt of materials

Proper inspection at the time of receipt Proper control on number of preparation

of Goods Received Note and serialnumber


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Internal Control.CASH

Its further divided into three parts

(1)Receipts

(2)Payments

(3)Cash and Bank balance


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Receipts At the end of the shift cashier should be

required to submit report of cash

receipts Cash counted by both the cashier at the

time of shift change

Person responsible for maintaining books

should not allowed to handle cash Duty of cashier should rotated regularly

Chief accountant should receivesummary report for cash receipt made

during the day


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Payments

Vouchers are preprinted and serialnumber control should be maintain over

these vouchers

Payments made against only authorisedvoucher

Level for authorising various paymentsshould be clearly defined


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Cash and Bank balance

Department wise collection of each daymust be fully deposited in the bank

account

Cash for the expense must be issuedseparately

Reconcile with balance as per book

Cash of all department should producedat same place at same time

Bank balance reconciliation must be

made


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Internal Control.DEBTORS

Credit limits should be reviewed atregular time intervals


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TAX APPLICABILITY


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TAX APPLICABILITY

Luxury Tax Levied on the basis of Room Rent

Value Added Tax Levied on the basis of Sale of any Food Item

Service Tax Levied on the Service other than Room rent

Provident Fund, ESI, Professional Tax Tax related to Employee

Tax Deducted at Source

Deductible on various kind of Payment like Contract, Salary, Rent,Commission, Interest, Professional Service etc.

Fringe Benefit Tax Payable on the basis of value of Fringe Benefit

Documents

293931 53213 Hotel Industries an Overview