Professional Documents
Culture Documents
SOPNO:ACCTGAR00212/15
DEPARTMENT: ACCOUNTINGSUBSECTION:ACCOUNTSRECEIVABLE
SUBJECT:
CREDITPROCEDURES/DIRECTBILLISSUEDATE:DECEMBER9,2015
ANDCREDITCARDAUTHORIZATION
POLICY:Hotelsmustensurethatadequatecredittocovercontractualobligationsissecuredand
documented.
PROCEDURE:
1. AtriumHospitalityacceptsthefollowingmethodsofsettlementofSalesandCateringContracts:
a. AproperlycompletedandapprovedDirectBillapplication(attachedseeprocedurebelow)
b. Prepayment(AdvancedDeposit)
c. CreditCardAuthorization(attachedseeprocedurebelow)
2. TheSales/CateringManagermustdevelopanestimateofprojectedRooms,F&B,andOthercharges
forthegroupandforwardtheestimatetoAccountinginordertoensurethatAccountingsecures
sufficientcredit.Adepositofnolessthan20%shouldberequestedwiththesignedcontract.
3. ForGroupsorCompaniesrequestingDirectBilling,theSales/CateringManagershouldsecurethe
completedCreditApplicationfromtheClient.NOTE:SocialCateringFunctionsarenotallowedto
applyforDirectBilling.IndividualsmaynotapplyforDirectBilling:Iftheircompanyhasestablisheda
negotiatedratewiththeSalesDepartmentforlodging,thecompanymayapplyforbillingprivileges.
CreditApplicationsshouldbereceivednolaterthan30dayspriortoaneventorguestsstaytoallow
sufficienttimeforprocessing.Inthecaseofapopupevent,creditmayberequested,butcannotbe
guaranteed.Acreditcardoradvanceddepositmustbesecured.Creditisneverguaranteedwhenan
applicationissubmitted,andshouldnotberelieduponasaformofpayment.
4. Whenitisnecessarytodenycreditprivileges,fullpaymentmustbereceivedbythehotelforany
Sales/Cateringevent.Ifthepaymentisnotreceivedintimetoclearthebankpriortotheeventor
clientarrival,acertifiedorcashiercheckisrequired.Inthecaseofindividualtravelersforacompany,
theindividualmustsupplyavalidcreditcardfortheirstay.
5. Intheeventthatanadvanceddepositwasnotsufficientforallcharges,thecreditcardonfileshould
beusedtosettlethebalancenolaterthan3daysaftertheconclusionoftheprogram,orontheday
ofcheckout.
DIRECTBILL/CREDITAPPLICATIONS
AllcompanieswithDirectBillprivilegesmusthaveanAtriumHospitalitycreditapplicationand
creditcheckonfile.
CompletedCreditApplicationsshouldbesenttoJohnWeissatTheCreditExchangeviaemailto:
John@CreditExchange.us.com
4802050596
ThecompletedcreditcheckwillbereturnedtotheDirectorofAccounting.
OnlytheDirectorofAccountingorGeneralManagerareallowedtoapproveDirectBill
Applications.Propertylevelapprovalswillbeallowedupto$50,000inCredit.Anythingover
$50,000needstobeapprovedinwritingbytheVicePresidentofOperations,andtheVice
PresidentofFinance.
Pleasenotethatthepropertyismakingthedecisiononcreditbasedontheinformation
receivedbytheCreditExchange.Youwillbegivencertaininformationtobediscussedso
thatathoughtfuldecisioncanbemade.Notethatcertainnegativeinformationdoesnot
necessarilymeanacreditdenial.Youwillneedtoreviewallinformationonacasebycase
basis.
Itemsofdiscussion:
Q:Howdidotherhotelsreplytothereferencechecks?
Subquestion:Didthisclientpayinatimelymanner?
Q:Doesthiscompanyhaveanyliensorjudgementsfiledagainstthem?
Subquestion:Isthisalarge,wellknowncompanyorasmallercompanynot
heardofbefore?
Ajudgementfiledonalargecountrywideestablishedcompanyis
notnecessarilyindicationofnegativecredit.Rememberthat
judgementsarenotonlyfiledagainstthemregardingtheirpayment
statusofbills,butcouldbeemployerrelated,oranyothersection
oftheirparticularindustry.Similarly,asmalllocalcompanywith
manyliensorjudgementsisprobablynotagoodrisktotake.
Q:DotheyhaveanyUCCFilings?
AUCCFilingmeansthatthiscompanyhadsufficientcredittolease
orpurchaselargecommercialitemsviaareputablebank.Generally
thisisagoodsignofalegitimatecompanyorentitywithgood
credit.
Q:Howoldisthiscompany?
Subquestion:Isthisanewcompanywithnopriorcreditestablished?
Newcompaniesdonotnecessarilyindicatehighriskdependingon
thereferencesthatwereprovided.Didtheyprovidereferences
fromvendorsratherthanhotels?Whattypeofvendorsandwhatis
theirpaymentstatus?Rememberthatourindustryisnota
necessity,butaluxuryinmostcases.Iftheyprovidedreferences
thatareessentialtotheirdailybusiness,(e.g.ElectricCompany,
PayrollCompany)thisdoesnotnecessarilyindicatehowtheywould
payanonessentialcompanyinvoiceforahotelfunctionorhotel
stay.
Thequestiontoaskis,Basedonalloftheinformationwehavebeengiven,dowe
trustthiscompany?
CreditApplicationsmustberenewedatleastonetimeperyear.Anewapplicationmustbefilled
outbythecompanyandindicatedasUpdated.TheapplicationwillbesenttoJohnWeissatthe
CreditExchangeforanupdateoflegalinformation.
CREDITCARDAUTHORIZATIONFORMS
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CreditCardAuthorizationformsmustbecompletedandsignedbythecardholder.
CreditCardAuthorizationformsmaybeusedforSales/CateringeventsorforIndividualtravelers.
TheAtriumCreditCardAuthorizationformwillbetheonlyformaccepted,exceptincaseswhere
aspecificformisrequiredbyaparticularBrand.
DuetoPCIDSScompliancerules(PaymentCardIndustryDataSecurityStandard)thefullcredit
cardnumbershouldneverbelistedontheformorwrittendowninitsentirety.Onlythelast4
digitsofthecardnumbermaybepresentatanytime.Inordertoreceivethefullcreditcard
number,aphonecallwillbeplacedtothecardholderwhilethehotelemployeeisloggedinto
theirPMSsystem,readytoreceiveandtypeinthecardnumberandexpirationdate.Thecredit
cardnumbermayalsobetypedintothesysteminadvanceofreceiptoftheAuthorizationForm,
howevertheprocesswillnotbeconsideredvaliduntiltheformisreceived.Thehotelemployee
shouldnotateinthereservationoreventthattheformisreceived,anddetailwhatspecific
chargesareauthorized(e.g.room/taxonly,banquetcharges).
Thecreditcardshouldbeauthorizedatleastthree(3)dayspriortoarrival.Thisavoidsany
surprisesordeclinesatcheckin.
TheCreditCardAuthorizationformshouldberetainedonfile,inalocked,securecabinetby
monthandbyarrivaldate,foroneyear.Thisisintheeventthatbackupisrequired,shouldthe
cardholderdisputethechargesatanypointintimeinthefuture.Generally12monthsis
sufficient.
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Inthecaseofcompanyrecurringpayments,youmaystillonlyretainthelast4digitsof
thecreditcardnumberonfileandmayneedtocallthecontacttoobtainthecreditcard
number.Makenoteofthecreditcardexpirationdate,asthecreditcardshouldbe
updatednolessthanonceper6monthstomaintainvalidity,orifthecardexpires.
Ifanyunsolicitedinformationisreceived,itmustbedestroyedandrenderedunreadable
immediately.Thisincludescopiesofcreditcards,copiesofdriverslicenseoranyotherIDorCVV
number.
Ifatanytimethecardholdersuppliestheentirecreditcardnumberviawriting,thefirst12digits
ofthecardnumbermustbecrossedout,blackedout,andrenderedcompletelyillegibleand
unreadable.