Can any Accountants help me with my curiosity please?

Question

So my concern is about the sales ledger operations in a Hotel industry, as the Hotels sales are on room accomodation,(so selling rooms), Why do they need a credit control for their customers? I mean for their hotel guests...or issue credit notes to them? I dont understand the sales account in this hotel industry, as the customers or hotel guests pay for the accomodation when they check-out the hotel. And what type of invoices do they issue cant get it???
I am a student and curious to know about working for a hotel, as I know how to maintain a sales ledger in a wholesale or retail trade business. But in hotels the nature of accounting is different..
If someone can help it would be Great.

Thank you a lot.

Answer 1

Not all custom is occasional. You will have corporate accounts who will use you regularly, and they will either ask their staff to pay by company credit card (if they have one) or on account (Sales Ledger).

Most companies prefer Invoices and Statements because it's how the rest of their order / approval / payment systems work. They also get longer periods of free credit that way.

Personally I prefer proper invoices to credit card receipts that are quite easy to lose.

Answer 2

City Ledger is the traditional name for the Credit Accounts.

Traditionally, big City firms used to have Credit Faccillities in the hotel, where their staff stayed, and the company was invoiced for it.

Nowadays, Its not so much big City. Travel Agents, Non-city companies, and lots of others hold Credit Faccillities in the hotel, but despite this, the name has still stuck.

Contrary to your statement, only about 65-80% of bills are paid on departure.

Its a fancy way of saying that the invoice will be sent back to the company and the bill is on the Sales Ledger account for that company.

Sales Ledger records are mostly computerised now to maintain the hundreds or thousands of credit accounts out there.

Unless you are doing a specific course in Accounts, and aim to be in hotels, you will be shooed out of the accounts office. If you are to be involved, you will be trained well in how to do it.

Answer 3

Hi, this is required for all the industries if, you have clients with running account. For example you may have corporate client, which uses your hotel regularly, you cant ask them the payment as and when they use your hotel.They may prefer to pay at the end of month or some other time period which is convinient to them, so you need debit notes and credit notes for accounting

Answer 4

sorry