Guest Accounting Module 

Guest Accounting Module in Property Management System (PMS)

1. Introduction

The Guest Accounting Module is a critical component of a Property Management System (PMS) in the hospitality industry. It handles all financial transactions between the guest and the hotel from the time of reservation until the guest’s departure. This module ensures accurate billing, tracks guest expenses, and facilitates smooth financial operations.

2. Objectives of the Guest Accounting Module

• Efficient management of guest financial transactions

• Ensuring accuracy in billing and payments

• Simplifying the check-in and check-out processes

• Generating financial reports and maintaining audit trails

3. Key Functions of the Guest Accounting Module

a) Reservation and Pre-Arrival

• Pre-authorizations and Deposits: Secure payments before arrival.

• Setting Billing Instructions: Define how payments will be managed (e.g., direct billing, pre-paid, or credit).

• Establishing Payment Methods: Capture guest preferences for payment (credit card, cash, digital payments).

b) Check-In Procedures

• Creating Guest Folios: Establish folios to track charges during the guest’s stay. Types include:

  • Individual Folio: Personal expenses for single guests.

  • Master Folio: Consolidated charges for groups or events.

  • Group Folio: Managing shared expenses among a group.

• Applying Room Rates and Packages: Automatically post agreed room rates and any package inclusions.

• Capturing Advance Payments: Apply deposits or advances to the guest account.

c) During Stay Management

• Posting Charges: Automatically or manually post room charges, F&B bills, amenities, and other services.

• Managing Credits and Debits: Track expenses, payments, and any credits or refunds.

• Handling Adjustments and Transfers: Adjust for errors, apply discounts, or transfer charges between folios.

• Split Billing and Sharer Accounts: Allow guests to divide payments among different accounts or individuals.

d) Check-Out Procedures

• Finalizing Guest Folios: Review all charges and prepare the final bill.

• Processing Payments: Accept payments through cash, cards, or digital means.

• Handling Express Check-Out: Facilitate quick check-outs by emailing bills or setting up automated payments.

• Managing Billing Disputes: Address any discrepancies in the billing.

• Generating Invoices and Receipts: Provide a formal financial record to the guest.

e) Back Office Functions

• Night Auditing: Verify the accuracy of financial transactions and close the day's operations.

• Handling City Ledger Accounts: Manage accounts that are billed to external companies or third parties.

• Accounts Receivable Management: Track outstanding balances and follow up on payments.

• Generating Financial Reports: Create reports on daily revenue, outstanding balances, and financial performance.

f) Integration with Other Systems

• POS Integration: Automatically transfer charges from restaurants, spas, or retail outlets to guest folios.

• Accounting Software Connectivity: Sync financial data with external accounting systems.

• OTA and Booking Engine Synchronization: Ensure room rates, availability, and billing details are consistent across platforms.

4. Benefits of the Guest Accounting Module

• Enhances accuracy and transparency in billing

• Improves guest satisfaction through smooth financial transactions

• Simplifies accounting and financial reporting

• Reduces manual errors and operational inefficiencies