Internal Control: Organisations
Internal Control: Organisations
Internal Control: Organisations
6 Authorise Personnel
7. Records
8. Manual Procedure
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INTERNAL CONTROL
9 Control
10. Budget
11. Reports
stores, guest's valuables, etc. The security services, as far as possible, must
be hired from professionals.
10. Budget: The Budgets like short term, long term, speific budgets, etc. must
be made for sale, cost,
production,
etc. The budgets must be achievable but
not achievabl so easiTY. The goals, of the hotel must be clearly mentioned
and the gõals must be made not
only for sale, cost, etc. but must also be
made for controlling
pilferages.
11. Reports: For each job reports must be made and circulated among the
executives of the hotel for information and control.
12. Independent Checks: The personnel responsible for performing the
should not be asked.forthe.internal-checks but-internatchecks MUStjobs
performed by different personnel either from the be
permanent
employed in the hotel or some times may be hired from out personnel
side.
The internal control is all the more
important in hospitality industry. In normal business
houses; the sale is carried out for alimited
all the sale is made froma sale counter
period of eight to ten hours a day and almost
managed by the owner himself or by his confident.
But in Hotel Industry, the cash as
well as credit sale is made from various outlets and
that too 24 hours a day
and 365 days a year. At hotels we sell different kind of food and
beverage products both produced at various kitchens of the hotel and
outside. We also sell various types services like procured from
of health club, swimming pool,
parlour, secretariat services, telephone services, and travel services and so beauty
on. These
sales are made to both in house
guests and outsiders. Kerninn in view the ehove facts
it becomes very
important that we have an affective control over these outlets sales. It
is not alwaye possible to have a
manayomont oye watoiug Casilicis aiú ouci siaii
members engaged in selling various services,
presenting check (bill), setling bills and
returning back the balance and receipts.
To ensure that staff does not get
procedures are developed for the tempted pilferage the cash sales, certain control
to
: L restaurant/ bar/other
. iie
departments sales.
The instruments used for
the Food and Beverage Service Control are as
follows
1. Kitchen,Order Ticket (K.O.T)
2. Restaurant Check.
3. Restaurant Sales Summary Sheet.
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INTERNAL CONTROL
Captain's Signature
(255)
HOTEL ACcoUNT, FINANCIAL AND F&B MANAGEMENT
2. RESTAURANT CHECK
Hestaurant Check is either prepared by cashier or waiter but is usually priced and
totaled by cashier. To pick-up the food, the check is shown by pick up waiter and the
check items are ticked by barker before giving the food. On demand, all the four copies
of the checkare presented to the guest,either he pays in cash or he signs and puts his
name androom riumber
o r he settled his billthrough credit card or debit card. If he pays
incash than the originalcopy ofthe check is returned to him with the Stamp of paid and
cashiers sionature as a receipt, but in case he signs ás a resident.orasa.credit.card
holder than originalcopy is sendtofront office andthefirst carbon copy is given to the
guestforhisTeterence. The second crbon.copy is sendto.accounts department and
thethirdcarbon copy is for control department.
SPECIMEN OF A CHECK
Vat
Luxury Tax
Total
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INTERNAL CONTROL
* *
Amount.
(Rs. Cashier's Signature & Stamp
In case a restaurant check is lost by the waiter than he is liable to pay Hs009.3sa
with the
finealong with theprice of the check (The check's price can be ascertained
help of K.0.T.) In case a check is lost by the cashier thenliable to pay the fine
he is
insteadof waiter. When a check.is issued to the waiter, he is reguiredto sign in, tne
takes
Hestaurant's sales summary sheet and when he returns the check ca_hier he
to
e t ai*nei
the stub duly signed by the cashier as a proof that he has returned the check to the
cashier. The stub has the details fike Check No. Table No., Waiter No., No. of Pax,
for
K.O.T. No. along with the price of thecheck. The waiter is requiredto keep.the stub
of the check
threedays; the period may differ from hotel to hotel. The lower portion
(below the remark please do not sign if you pay cash) is perforated and can easily be
*A****
(257)
HOTEL ACcoUNT, FINANCIAL AND F&B MANAGEMENT
Time.
Dr Cr.
C. 1. No. Tine W. SALE Cash DisL Rem Sig
No. No of No.
Pax Food BevLig Tob Vat Service Total
Charge
Note:C. No. = Check Number, T. No. =Table Number, Bev. = Beverage, Liq. = Liqueur,
Tob. Tobacco, Dis. =Discount, L. Ledger, Rem, Remarks, Sig.
= = =
Signature
(Cashier's)
In case guest setles his bill in cash than the amount received is shown in the cash
column and discountallowed is shown in the discount column. In case the guest settles
his bill by signing (either as a hotel resident or as a credit card/ debit card holder) than
the total amount is shown in the ledger column and in the remarks column the Room
Number, Name of the Guest, Credit Card Number / Debit Card Number and other
detail's are entered. Cashier signs in the Signature column.
Chef's Signature . .
GUEST ACCOUNTING includes both Guest Weekly Bill and Visitor's Tabular Ledger.
ABC HOTEL
NEW DELHI
TNO SERIAL N0. 23465
FAXNO
E MAIL
(259)
HOOMNUMBER. itlili1tilllI!!lIl!'!f!lt!t'f
ItI!f!it1#l!ilil!lIlI!!IiIiiIItiiitllttIittl111lttti!!tttiI!titttI!i!tt1!!tttti!!itt!Itttti t!Pi!tutgi
Nationality
Donignation
E.Mail .,,J, NO, osonppst
Office Addres If!!!t1tttlt!'
Nurmber of Pax
Typoof Roorm. wwe ittittttiitiitttt'*''*'' '*'
Rato Apartrnont..... Board 'IUl'#'' I'' ' # ' l ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' .
Tolophone metor reading: Closing.. ... (-) Opening ... (=) Consump
tjon. t't'*'*****tP''''°'''
Date of Expiry ''##!t''** '''''''* ' ' ' * ' ' * ' ' ' ' * ' ' '
Booked by
DATE
DAY
Rs. P Rs. P Ro. P Rs. P Rs. P Rs. PRs. P
APARTMENT
BOARD
BED TEA
BREAK FAST
LUNCH
DINNER
TEA/COFFEE
SNACKS
FOODSUNDRIES
SOFT DRINKS"
WINE/BEER
HARD DRINKS
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INTERNAL CONTROL
SALES TAX/VAT
LUXURY TAX
SUR-CHARGE
TELEPHONE
LAUNDRY
TOBACCO
FLOWERIEST
NEWS STAND
V.P.O.
MISCELLANEOUS
TRANSFER
DAILY TOTAL
BALANCEB/F DR
CR
GRAND TOTAL DR
CR
DEPOSIT/CASH
ALLOWANCES/DISCOUNT
LEDGER
TRANSFER
BALANCE C/F DR
CR
TOTAL DR
CR
Checked and found correct.
Note: Bils are payable on presentation. Personal cheques are not accepted.
Please ask for a cash receipt along with a copy of the bill. No tipping please.
NOTE G.R. No. =Guest Registration Number, VAT Value Added Tax, V.P.O.
=
=
Visitors Paid Out, Dr Debit, Cr Credit, B/F
Brought Forward, C/F Carried
= = =
=
Forward.
(261)
BMANAGEMENT
HOTEL ACcOUNT, FINANCIAL AND F&
ROOM NO. 101 102 103104 105 201 202 203 Total
NAME
NATIONALITY
TYPE OF ROOM
NUMBER OF PAX
G.R. NO.
DATE OF ARRIVAL
TIMEOF ARRIVAL
DATE OF DEPARTURE
TIME OF DEPARTURE
PLAN
RATE: APARTMENT
BOARD Rs R Rs. PRs. R.Rs. Rs. RRs. R. R.PRs. P. Rs.
APARTMENT
BOARD
BED TEA
BREAK FAST
LUNCH
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INTERNAL CONTROL
DINNER
TEA/COFFEE
SNACKS
FOOD SUNDRIES
SOFT DRINKS
WINE/BEER
HARD DRINKS
SALES TAX/VAT
LUXURY TAX
SUR-CHARGE
TELEPHONE
LAUNDRY
TOBACCO
FLOWERIEST
NEWS STAND
V.PO.
MISCELLANEOUS
TRANSFER
DAILY TOTAL
BALANCE B/F DR
CR
GRAND TOTAL DR
CR
DEPOSIT/CASH
ALLOWANCES/
DISCOUNT.
LEDGER
TRANSFER
BALANCE C/F DR
CR
TOTAL DR
CR
NOTE: G.R. No. = Guest Registration Number, VAT =Value Added Tax, VPO.
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MANAGEMENT
FINANCIAL AND F &
8
HOTEL ACCOUNT,
Carried
Brought Forward, C/F
=
Forward.
DASH CONTROL
discussed in 'Restaurant
Sales Control'-that cash sales are
s it has been already the and night. A hotel may make couple
a of
various outlets throughout day
made at A cashier may be tempted to
run away with the
dkhs of Rupees cash sale in a day. do not
affective control of cash the hotel's management usually
ash. To have an and they take
sure about his credentials
cashier unless and üntil they àre very
20point a
cashiers are rotated very regularly from on outlet
inimum of two references. Usually watch on them. All cash collected by cashier
Dthe other and head cashier keeps a the
sales summary sheet.
deposited to the front office cashier along with
cashier
he imprest amount given to cashier is checked quite regularly by head
ccountant/ control department. The cashiers are not allowed to keep imprest money
of next shift.
ith them but is also deposited/ kept at hotel or handed over to the cashier must De
All the check books are numbered and in case of any cuttings the checks
Ounter signed by the manager. The front office cashier is required to prepare a cash
ASH RECEIPTS
ash receipts must be controlled from the point of sale till t is banked. The following
steps are followed for its control
1. Checks must be prepared for each cash receipt and a proper receipt must be
handed over to the guest.
2. The Checks must be numbered and tearing,
cutting or canceling of check
must be sigred by an authorised
manager.
3. All Checks must be entered in the Sales
Summary Sheet.
4 The total cash received must be deposited in the bank immediately after the
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INTERNAL CONTROL
casn
recommended
instantly
is over or when there is cash more then the
t each cashier him ser or
cash chest. The cash should be deposited by
in the Front Office Cashier
be deposited by the Front Ofice Cashier. But the
Srouid cash from them. Ihee
a receipt to each cashier on receiving the
stissue in the Cash Book
S received by Front Office Cashier must be shown
.Each cashier should be given a float/ imprest for paying balance to guesiso
is authorised to
TOr
en-cashing foreign currencies (Only Front Office Cashier the cashiers
accept foreign currency from guests). The float so handed over to
must be checked both at the end of the shift and during the shift (surprise
check). The cashier should not be allowed to keep the float with them atter
the shift is over and the float should be deposited with the Front Office Cashier
or should be handed over to the next shift's cashier (in case of room service or
coffee shop)
6. The allowances / discounts / complementary should be only extended and
signed by the authorised personnel.
7. The un used checks must be kept under lock and key and the serial numbered
checks are issued to the cashiers
against their signatures.
CASH PAYMENTS/DISBURSEMENTS
5. Financial Accuracy: The totals, calculations, pricing of each bill must be checked
for its accuracy. The over charging and under charging are very bad for the
hotel. The bank account must be reconciled on weekly basis. The checks and
K.O.T:S must be numbered. At the end of every month ledgers must be balanced
and trial balance prepared.
With the modern accounting techniques developed, the arithmetic accuracy is ensured
by machines.
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INTERNAL CONTROL
trained. it isguy
internal control, the staf must be regularly
0 ensure the affectivecontinuous employee must be trained
tor a minimum
Questions:
What
a hotel?
What are its objectives in
What doyou mean by Internal Control?
are the different types of control?
95. What is Cash Control? Why Cash Control is more difficult in hotel industry as
compared to others?
Q6. What are the major types ofFrauds? How can you make control more affective in
hotel industry?
Q7. Design a comprehensive internal control system for front office receipts.
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