STANDARD OPERATING PROCEDURE

Memorandum----STANDARD OPERATING PROCEDURE Hotel Accounting System-3Subject --DISCOUNTS and ALLOWANCES OFFERED TO CUSTOMERS --

DATE –12-6-2007

DISTRIBUTION ---General Manager, Financial controller, Front Office Manager,IT –Manager, Reservation s Manager Director General Accounts, Chief Accountant Account’s department and all department heads

OBJECTIVESThe hotel business is service oriented it satisfies the customer to make his stay a memorable and pleasurable one , it meets the necessities of the guest to the type of food of his palate and encourages the guest to maximize the guest satisfaction with out any Hindrances to the comforts and benefits he derives ,As a policy to enunciate promotions in the business structure , hotels come out with a policy on discounts and allowancesAnd here we have analyzed and whetted a policy on discounts and allowances allowed to guests

Policy statement--- In order to promote the sales of the company by identifying the market segments which are seasonal a flexible pricing policy with a discount /allowances structure is framed for the penetrating the sales of the company , market research analysts would use this tool in its sales promotion strategy

Definitions

Guest –is a person who is permitted to stay at the hotel for a period of time to enjoy the hotel guest facilitations without hindrance to other guests both with a room and a restaurant facility

Discount and allowances –Are a reduction in the basic price , they modify the listed prices of any product or service for sales , for the hotel the rooms and allied services like laundry telephone ,have listed prices but due to sales and marketing strategy a the prices are reduced to achieve the targeted sales ,to enable the travel agent to have a marketing resource during low seasons prices are discounted , the cost of guest facilitations are allowancedCash discounts are offered for immediate settlement of bills in lieu of credit terms

Discounts relevant to our hotel –discounts appear as promotions for instance loyalty cards

We have the 02 piece laundry allowance per day for executive guest rooms are allowanced to guest as a package promotionThe staff discounts in restaurants are all motivational discount policy

Discounts allowances proceduresHow are the discounts defrayed –The internal communication system records the schemes of the discount with well laid out procedure Any discount granted, issued or paid should have an authority for the discount Discount for which purpose paid and the reasons for payments is analyzed , it also specifies the quantity of discount paid /allowanced off .There is a separate policy and procedure laid down for each revenue discounted or allowanced The above discounts usually concerns the guest mainly by way of promotions and to staff as incentives Accounting discounts are those which are passed to due errors or nulling any error in making the bills due to the negligence of the employees , as today computer are in use a wrong entry in the sales can be nulled , by passing a discount entry

AUTHORISATIONS OF DISCOUNTS

The discounts are authorized by an authority normally at the departmental head level, normally a discount or allowance is allowed at a senior supervisory level who is available at any given point of time

The discount structure has an approval from the top management level-For windor plaza hotel the chairman of the company approves ratifies and delegates for delegation The schemes of the discounts allowances are written down by the General Manager agreed upon by his team and approved /ratified by the chairman of the companyAccountabilty of discounts

Any discount allowed or allowance passed should have proper documentation to substantiate the discounts /allowances accounting treatment

The Accounts department would have a control on the discounts and allowances allowed every day, the night auditor would summarize the discount made, the reasons attributed And in case loyalty cards proof of the card holder, like his card number recorded, the amount of discount allowed the copy or the embossment of the loyalty card . etc he would frame a report manually and submit a copy to the department head , financial controller and the general manager , after the documents signed it would be put on file , if the computer package enables a discount report it would be pulled out of the computer and put in use. Such discounts are verified and filed as document for inspection ,any time.

In case of discounts arising out of Guests Disagreeing with the Usage of any facility or any food menu inconsistent with his taste , or use of a facility , such discounts are written off the revenue , but justification should be made by the level of authority for allowing the Discount or Allowance , the amounts discounted or allowanced should be in proportions to the total amount of the bill.

Specific issues in the computation of laundry discounts at present on promotions to sale of room in the executive floor , these discounts can be accounted as guest complimentary in the bills , because usual audit norms are revenue earned should not be revenue reduced with discounts.

Discount authorizations ---whenever a staff discount is offered the bill should have the signature of the staff to whom the discount is offered, the cashier should ensure that on all staff discount bills the concerned staff should sign the bills signed , In case of any difficulty in getting their signatures the restaurant Manager, supervisor should be informed of the same and with his assistance or instruction settle the bill.

For individual discount schemes like a Discount on promotion or allowances, the concerned department, if it is sales and marketing, Food and Beverage, front office or from any selling utilities a Standard operating procedure is made and distributed to all department and all the concerned staff in the departmental meeting, as to show the guidance to staff how the scheme operates, because they are END USER operators of the scheme

The discount authorizations can be delegated by the department head for immediate sanctions even to supervisor levels but should be ratified by the Departmental headsAnd ultimately by the General Manager and the Financial controller. All the discounts and policy and procedures will abide by the tax laws and other laws of Vietnam , and should be binding to Audit norms and financial control

APPROVED BY ISSUED BY

General Manager Financial Controller

Mr. Gerhard Felgenhauer S.Jayakumar

Vice General Director

Tram Thich Ton