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POLICYANDPROCEDUREMANUAL

SOPNO:ACCTGREV00105/16
DEPARTMENT: ACCOUNTINGSUBSECTION:REVENUE
SUBJECT:
COMPS,ALLOWANCESANDADJUSTMENTSISSUEDATE:MAY25,2016

POLICY:AllComplimentaryRooms,Allowances,Adjustments,andF&BHouseChargesmustbeproperly
supported,tracked,reviewedandapproved.

PROCEDURE:

1. ComplimentaryroomscanbegivenbytheHotelattheGeneralManagersdiscretion.CompRooms
shouldbeusedforzeroratedroomsthatwillresultinfuturebusiness,guestappeasement,donations
andothermarketingpurpose.Notclassifiedascomplimentaryroomsareroomsprovidedduetoa
tradeoutarrangement,roomsprovidedinconnectionwithapromotion,orroomsprovidedaspartof
agroupcontract.Theseroomsshouldberecordedasoneoftherevenuecategories(transient,
group,orcontract).
Alogofcomplimentaryroomsshouldincludetheguestname,reasonforcomp,and
authorizingassociate.

2. AnAllowanceisareductioninrevenuethatmaybenecessaryifthehoteldidnotdeliverthe
contractedservicewithintheagreedupontermsortheguestexperiencedissuesandthehotelis
issuingcredittotheguest.Allowancesarerecordedtotheallowancelineintheapplicable
department.Allowancesshouldbecompletedonadailybasisandshouldnotbeallowedtocompile
intoaweeklyormonthlyamount.
Allallowancesmustbeproperlysupportedbytheguestfolioandexplanationofthe
allowance,includingamount,date,andsignatureoftheassociateperformingthe
allowance.

3. Adjustmentsarerecordedasareversalofapplicablerevenueandmaybenecessaryifthehoteldid
nothavetherighttorecordtherevenueorapostingerrorresultedintheincorrectamountbeing
charged.Adjustmentsaresubtractedfromtherevenuelineintheapplicabledepartment.
Adjustmentsshouldbecompletedonadailybasisandshouldnotbeallowedtocompileintoaweekly
ormonthlyamount.
Alladjustmentsmustbeproperlysupportedbytheguestfolioandexplanationofthe
adjustment,includingamount,date,andsignatureoftheassociateperformingthe
adjustment.

4. F&BHousechargesareF&BchargesconsumedfortheHotelsbenefit.Allchargesbelowshouldbe
rungatretail.TheseshouldberecordedinthePointofSale(POS)andclosedtotheappropriatecode,
transferringtothePMS.Thefollowingcodesmayincludebutarenotlimitedto:
a. A&GDiningChargesbyAdminDept.andManagersonDuty.
b. S&MDiningChargesbySalesorCateringmanagerswhenentertainingprospectiveclients.
c. SalesAmenitiesInRoomAmenitiesinitiatedandapprovedbySalesorCateringManagers
d. RoomsGuestInconvenienceAnyrequestsbytheFrontdeskforfoodandbeveragedueto
anyguestissue/accommodation
e. RoomsAmenitiesInRoomAmenitiesinitiatedandapprovedbyRoomsManagement
f. F&BPromoanyF&BitemsforF&Bmarketingandgoodwill

g. BreakfastCouponsAnycouponsgiventogroupsbookedbySalesorLNRshouldbecoded
asaSalesexpense.AnycouponsofferedwithotherrateswillbeaRoomsexpense.
h. DrinkCouponsAnycouponsgiventogroupsbookedbySalesorLNRshouldbecodedasa
Salesexpense.AnycouponsofferedwithotherrateswillbeaRoomsexpense.

F&BHousechargesshouldbehandledasfollows:

Chargesshouldberungatretailprices.

Chargesshouldbeclosedout/routedtotheappropriateHouseAccountinthePMS.

Chargesshouldbeadjustedfromtherevenuewhichtheyoriginatedonadailybasis,andshould
notbecodedtotheAllowanceline.Forexample,anyfoodconsumedforlunchshouldbe
adjustedfromlunch,taxadjustedfromtax.Anyapprovedgratuitiesshouldbeadjustedto
miscellaneousandexpensedinfulltotheappropriateexpensecodeassociatedwiththeoriginal
charge(e.g.Sales,A&G,etc.).

Chargesforfoodandbeverageshouldbetrackedonaspreadsheetonadailyandmonthlybasis
atretail,bycategory.

Attheendofthemonth,totalsshouldbegathered,andcreditedtofoodcost/chargedtothe
appropriateexpenseaccountatcost.

o FoodcostshouldbecreditedbackatthecurrentYTDfoodcost%
o BeveragecostshouldbecreditedbackatthecurrentYTDbeveragecost%

TotalsshouldbetransferredtotheFoodandBeverageInventoryCostsheets,whichwill
automaticallychargetheappropriateaccountcode,andapplyusetaxwherenecessary.

5. UndernocircumstancesshouldanyadjustmentorallowancebeputintoaHouse/PMAccount,oran
A/R(CityLedger)andallowedtoage.Alladjustmentsandallowancesshouldbecompletedinthe
businessdaythechargeoccurred,priortoNightAuditrollingthedayinthePMS.Thismayinclude
Internet,LongDistance/LocalPhone,Parking,Room,Tax,oranyotheradjustmentorallowance
performedthroughouttheday.Eachadjustmentandallowanceshouldbesupportedbyafolioand
explanationastowhytheadjustmentoccurred.

6. ThelogofallComplimentaryRooms,allFrontDeskAdjustmentsandAllowances(includingallfolios
withsignaturesorvouchers),andallF&BAdjustmentsandAllowances(includingallticketswith
explanations)shouldbeattachedtotheirappropriatecoversheetsandroutedtothePropertys
ExecutiveCommitteeonadailybasis.

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