Pearson New International Edition International pcl tp indd 1

GUEST CHARGES, PAYMENT, AND CHECK-OUT
Back-Office Accounting
The back-office accounting system includes all of a hotel’s accounts, including those
in the guest ledger and city ledger. Recall that guest folios and city ledger accounts
are records of charges and payments. Collectively, these two types of accounts com-
prise the hotel’s accounts receivable: the sum of what registered and unregistered
guests owe the hotel. Accounts receivable are assets; as soon as a guest incurs a charge
to be posted to a folio or city ledger account, the hotel’s accounts receivable increase.
By contrast, payments made by cash or payment card decrease accounts receivable. A
guest’s folio is updated whenever a charge is incurred or a payment is made. At the
time of guest check-out or account settlement (for city ledger accounts), the total
amount of accounts receivable to be collected must be brought to zero in a process
called account settlement.