POLICYANDPROCEDUREMANUAL

SOPNO:ACCTGAR01002/16
DEPARTMENT: ACCOUNTINGSUBSECTION:ACCOUNTSRECEIVABLE
SUBJECT:
INTERCOMPANYBILLINGISSUEDATE:FEBRUARY8,2016

POLICY:AllIntercompanyBillingmustbeproperlyaccountedforandcorrectlyallocated.

PROCEDURE:
Fromtimetotime,oneAtriumHospitalitylocationmaybeobligatedfortheuseofgoodsorlabororiginally
purchasedorexpensedbyanotherlocation.TheDirectorofAccountingateachpropertywillberesponsible
foraccuratelyaccountingforanyIntercompanyBillings.

AllIntercompanyBillingshouldbebookedthroughtheoriginatingpropertysCityLedger/AccountsReceivable
andprocessedthroughAccountsPayableatthereceivingproperty.

ThebillingpropertyshouldopenanewCityLedgeraccountwiththenameoftheHotelorLocationtobe
billed,notingthatitisanIntercompanyaccount(e.g.TucsonMarriottIntercompany).

Chargesshouldbepostedinaccordancewiththegoodsconsumedorservicesrendered.TheMiscellaneous
postingcodeshouldbeusedinmostcases,unlessthepropertyPMShasspecificpostingcodescorresponding
totheappropriatecharges.Detailsshouldbeincludedinthepostingwheneverpossible,asthePMSallows.

GOODSTRANSFER
Goodsshouldbechargedatcost,andbesupportedwiththeinvoiceshowingthepurchaseoftheitems.For
example,twolocationsinthesamecitymayhavetheneedtoborrowguestsuppliesinanemergency
situation.Inthisexample,LocationAborrowedacaseofbathtissuefromLocationB.Iftheintentionisto
reciprocatebyreturningtheitemstoLocationB(withinaspecificandreasonabletimeframe),whenthenext
shipmentisreceivedbyLocationA,thennoIntercompanyBillingisrequired.Otherwise,wemustproperly
debitLocationA,andcreditLocationB.

LocationBwillpostachargeinthePMSforthecostofthebathtissue,includinganysalesoruse
tax,andnotatingtheitemintheDescriptionline(e.g.1caseofCottonelleBathTissue).The
foliowillbeclosedouttotheCityLedgeraccountforLocationA.
o Example:ifthecostofthecasewas$80.00andsalestaxwaspaidorusetaxwasaccrued
at$6.60,thepropertywouldbecharged$86.60.Donotlistthetaxseparately.Weare
onlyreimbursingthecost,notsellingtheitem.
ThecreditmustbeproperlyrecordedontheDailyRevenueReportthefollowingdayto
4071860000GuestSupplies.
ThebillisgiventoLocationA,withacopyoftheoriginalvendorinvoiceasbackup.
LocationAwillprocesstheinvoicethroughAccountsPayable,codedto4071860000Guest
Supplies.NoUseTaxshouldbeaccrued,astaxwasalreadyimposedonthepurchase.Weare
notbuyingtheitem,onlyreimbursingthecost.
LocationBwillreceiveachecktopayofftheCityLedgeraccountviamailfromtheCorporate
Accountingoffice.

ExpenseReports
Thesameprocedureshouldbefollowedifanyemployeeincursanexpense,reimbursedvia
expensereportfromtheirhomelocationthatshouldbeallocatedtoanotherAtriumHospitality
location.

BORROWEDLABOR
Thesameprocedureshouldbefollowedwhenlaborisborrowed,properlycodingcreditsandexpensestothe
payrollaccountassociatedwiththehomejob,workedjob,andapplicabletaxesandbenefitslines.Inthis
example,asalariedFrontOfficeManagerworkedoneweekatLocationA,butisonpayrollatLocationB,
wheretheotherweekwasworked.

LocationBwillpreparetheinvoiceforoneweekoftheFrontOfficeManagersgrosssalaryand
recordsthecreditto4060240000FrontOfficeMgmtontheDailyRevenueReportthefollowing
day.
Additionalchargeswillbepostedtotaling20%oftheFrontOfficeManagerssalarytocovertaxes
andbenefitspaidbyLocationB,andcreditedaccordinglyontheDailyRevenueReport.Usethe
followingmatrixasanaverageguidelinetobreakoutthe20%fortaxesandbenefits,replacing
thefirsttwonumberswiththedepartmentnumberoftheemployeeyouareallocating.Usethe
LaborBillOutworksheetforcompletingthis.

FederalUnemployment
4069150000
1%
Medicare
4069150005
1.45%
SocialSecurity
4069150015
6.2%
StateUnemployment
4069150025
4%
WorkersComp
4069300005
1%

LocationAwillprocesstheinvoicethroughAccountsPayable,codingthechargestothe
appropriatelaborandtaxaccountcodesbasedonthejob.

InthecaseofalongtermorTaskForcepositionorwhentheborrowedlaborencompassesanentirepay
period,theactualpayrollnumbersshouldbeusedwheneverpossible,inreplaceoftheestimatedtaxamounts
above.

Ifforanyreason,twoormorepropertiesaresharinganhourlyemployee,careshouldbetakento
ensurethatnoovertimeisincurred.CheckwiththeAtriumHospitalityCorporateHRandPayroll
departmentstoseeifovertimewouldbeapplicable.Overtimeregulationswillvarybasedon
ownershipstructureofthelocationsandhowtheassociateissetupinthepayrollsystem.

INTERCOMPANYJOURNALENTRIES
IfanyIntercompanyBillingshouldneedtoberecordedviaJournalEntrythroughIntercompanyBalanceSheet
accountsratherthanbyAccountsReceivableandAccountsPayabletransactionsasoutlinedabove,the
BalanceSheetaccountsshouldbesettledpriortotheendofeachmonthviaBookTransferinitiatedbythe
CorporateController,sothattheaggregateresultisanetzeroatmonthend.

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CORPORATEMEETINGS
LocationshostinganyAtriumHospitalitycorporatemeetingwillbehandledperCorporateOfficeSOP001,
InterCompanyMeetingsatAHHotels.

CORPORATEOFFICESTAFF
WhenaCorporateOfficestaffmemberoranyotherindividualunderCorporateOfficedirectionvisitsahotel
onhotelrelatedbusinessforthatproperty,allnormal,businessrelatedchargesforthestayaretobe
complimentary.Anyitemsnottypicallyreimbursableviaexpensereportaretheresponsibilityoftheindividual
unlessspecificallyinstructedotherwisebytheVicePresidentofOperations,VicePresidentofFinance,or
President.

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