What is Front Office Accounting

Front office accounting keeps track of financial
data in folios for both guests and house accounts
or city ledger. Folios provide support documentation
and vouchers detail front office account
postings. Computer systems minimize need for
vouchers as most have interface capabilities from
revenue centers.
The front office ledger is part of accounts
receivable and includes a set of accounts for registered
guests (the guest ledger) and a set of
accounts for non-guests and unsettled guest
accounts (the city ledger). Accounting collects
city ledger and front office settles guest ledger.
Guests present acceptable credit card or direct
billing authorization at reservation or registration
to establish charge privileges and line of credit.
The night auditor identifies accounts near credit
limits (high risk, high balance) and the credit manager
intervenes and settles outstanding accounts
of past guests.
The resolution of a folio posting error is done
before close of business (night audit) and is supported
by a correction voucher. Account
allowances may be for compensation for poor
service, rebates, and coupons and are documented
by allowance vouchers requiring management
signature.
Front office accounting also maintains transfers
between folios, cash advances, front office
cash sheets, and cash banks.