FRONT OFFICE SERVICES

NC II
MODULE: Provide Cashiering
Services & Conduct Night audit
Reservatio
Introductory Message

This Self-Learning Module (SLM) is prepared so that you, our

dear learners, can continue your studies and learn while at
home. Activities, questions, directions, exercises, and
discussions are carefully stated for you to understand each
lesson.

Each SLM is composed of different parts. Each part shall guide

you step-by-step as you discover and understand the lesson
prepared for you.

Pre-tests are provided to measure your prior knowledge on

lessons in each SLM. This will tell you if you need to proceed on
completing this module or if you need to ask your facilitator or
your teacher’s assistance for better understanding of the lesson.
At the end of each module, you need to answer the post-test to
self-check your learning. Answer keys are provided for each
activity and test. We trust that you will be honest in using these.

In addition to the material in the main text, Notes to the Teacher

are also provided to our facilitators and parents for strategies and
reminders on how they can best help you on your home-based
learning.

Please use this module with care. Do not put unnecessary marks
on any part of this SLM. Use a separate sheet of paper in
answering the exercises and tests. And read the instructions
carefully before performing each task.

If you have any questions in using this SLM or any difficulty in

answering the tasks in this module, do not hesitate to consult
your teacher or facilitator.

Thank you.
 What I Need to Know
This module was designed and written with you in mind. It is here to help
you master the nature of Processing Financial Transactions. The scope of
this module permits it to be used in many different learning situations. The
language used recognizes the diverse vocabulary level of students. The
lessons are arranged to follow the standard sequence of the course. But the
order in which you read them can be changed to correspond with the
textbook you are now using.

After going through this module, you are expected to:

1. Discuss the types of hotel financial transactions.

2. Familiarize the processes involve in a financial transaction.

3. Appreciate the processes of accounting cycle.

 What I Know
Direction: Write the letter of the correct answer on your answer sheet. Write it on your
activity notebook.

1. This is issued to a salesperson and serves as a record of specific sales.

a. Commission Voucher c. Charge Voucher
b. Petty Cash d. Allowance
2. This is used to support a charge purchase transaction that takes place
somewhere other than the front office.

a. Commission Voucher c. Charge Voucher

b. Petty Cash d. Allowance
3. It is usually a small form used to document a disbursement (payment).
a. Commission Voucher c. Charge Voucher
b. Petty Cash d. Allowance
4. Used to support an account allowance
a. Commission Voucher c. Charge Voucher
b. Petty Cash d. Allowance
5. Used to support cash flow out of the hotel, either directly to or on behalf of
the guest

a. Cash advance Voucher c. Charge Voucher

b. Petty Cash d. Allowance
6. It is used to record cash or bank receipt. It represents receipt of cash in
hand.

a. Cash advance Voucher c. Charge Voucher

b. Cash receipt d. Allowance
7. The transactions in which property is transferred from seller to buyer for
money or credit as in car sales or from service provider to clients or guest as
in hotels, spas, and resorts

a. Sales c. Receipts
b. Purchases d. Payments

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 NegOr_Q3_FOS9_Module3_v2
8. The transactions that are required by a business in order to obtain the goods
or services needed to accomplish the goals of the organization

a. Sales c. Receipts
b. Purchases d. Payments
9. A written acknowledgement of having received or taken into ones possession
a specified amount of goods or money.

a. Sales c. Receipts
b. Purchases d. Payments
10. The transactions that refer to a business receiving money for a good or
service

a. Sales c. Receipts
b. Purchases d. Payments
11. The account or account name can either be the type of account as in the
example above or it can refer to the account holder's name which could be
the name of the hotel’s guest.

a. account number c. account

b. debit d. credit
12. A unique code composed of numbers, letters, or other characters, and is
assigned to the account to make it easier to be entered and accessed to in a
database.

a. account number c. account

b. balance d. credit
13. An entry recording an amount owed, listed on the left-hand side or column of
an account

a. account number c. account

b. debit d. credit
14. An entry recording a sum received, listed on the right-hand side or column of
an account

a. account number c. account

b. balance d. credit

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 15. The difference between the sum of debit entries and the sum of credit entries
entered into an account during a financial period

a. account number c. account

b. balance d. credit

Lesson
Process Financial
3 Transactions
The financial transactions of a business with its customers and clients is tracked,
recorded, and managed by the accounting section of the business or organization.
The accounting department is responsible for the financial health and tracks the
performance of the business directly.

In hotel businesses, accounting means managing expenses and revenue. It

provides clear information to the guests thus avoiding any unpleasant surprises to
the guests.

Notes to the Teacher

This contains helpful tips or strategies that will
help you in guiding the learners. The following
are information that would lead to the activities
and assessment. Some activities may need your
own discretion upon checking, or you may use
rubric if provided. Please review the activities
and answer keys and amend if necessary.

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4
What’s In

CROSSWORD

Direction: As a review of the previous lesson, cross out the types of hotel computerized
reservation system terms found in the word puzzle below.

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 What’s New

Directions: List down as many as you can the different vouchers that you know. Write
your answers in your notebook.

Example:

1. Cash Advance/ Deposit Receipt

What is It

Financial Transactions

Financial transactions between the guests and the hotel start at the time of
reservation or registration and ends at the checkout; the payment of reservation fee,
check-in down payment, payment for the use of facilities and services, and food and
amenities, all these constitutes a hotel’s financial transactions with its guests.

Financial transactions processing is more than merely the capturing of financial

data or performing accounting transactions, these are key procedures for a hotel to
be cost- and time-efficient and able to deliver high-quality services. These
procedures are carried out for processing and recording different types of
transactions.

Types of Financial Transactions

The four main types of financial transactions that occur in a business are sales,
purchases, receipts, and payments.

Types of Financial Transactions

Financial Transaction Definition
1. Sales the transactions in which property is
transferred from seller to buyer for
money or credit as in car sales or from
service provider to clients or guest as
in hotels, spas, and resorts. Sales

transactions are recorded in the

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 accounting journal for the seller or
service provider as a debit to cash or
accounts receivable and a credit to the
sales account.
Example: Marga stayed for a weeklong
vacation at Hyatt Hotel and paid the
bill at the front desk prior to checking
out.
2. Purchases are the transactions that a business
must conduct in order to receive the
commodities or services required to
achieve the organization's objectives.
Cash purchases result in a debit to the
inventory account and a credit to the
cash account. The debit entry would
still be to the inventory account, and
the credit entry would be to the
accounts payable account if the
transaction was made with a credit
account.
For example, the ten air conditioning
units ordered two weeks ago as an
upgrade to some of Hotel Blanca's
room units arrived. It was paid in cash
at the time of delivery.
3. Receipts refers to a written acknowledgement of
receiving or taking possession of a
certain amount of goods or money.
Carl's receipt for the payment of the
meal he ordered for room service was
given to him by the cafeteria
employees.
4. Payments transactions that refers to a business
receiving money for a goods or services.
They are recorded in the accounting
journal of the business issuing the
payment as a credit to cash and a debit
to accounts payable. Example: Anton
called for a room reservation at
Highlands Hotel and Resort. He gave
the front desk clerk his debit card
number to pay for the reservation fee.

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The Accounting Cycle

The accounting section of a business manages the financial transactions of the

business with its customers and clients. The accounting department is the one that
directly oversees the performance of any business. In a hotel business, accounting
is managing expenses and revenue. It provides clear information to the guests
thereby avoiding any unpleasant surprises to the guests.

The front office accounting staff identifies, records, measures, classifies, verifies,
summarizes, interprets, organizes, and communicates financial information for a
hotel business in a systematic manner.

The objectives of accounting system are, among others, to:

1. accurately handle transactions between the guests and the hotel

2. track the transactions throughout the guest’s occupancy
3. monitor the guest’s credit limit
4. organize and report the transactional information
5. avoid possibility of any fraud

The accounting cycle is a collective process of identifying, analysing, and

recording the financial events of a business establishment. It is an 8-step
process that starts when a transaction occurs and ends with its inclusion in the
final statements.

The accounting cycle follows the following steps:

The Steps of the Accounting Cycle

Step Process
1. Identifying The first step in the accounting cycle of a hotel is the
transactions identification of those transactions that comprise a
bookkeeping event. This could be a sale, refund,
payment to a vendor, and others.
2. Recording of The recording of transactions in the journal is the
transactions second step in the cycle. The entries on the journal are
based on the data on the receipt of an invoice,
recognition of a sale, or completion of other economic
events.
3. Posting A transaction should be posted to an account in the
general ledger after it has been recorded as a journal
entry. The general ledger shows how all accounting
activities are broken down by account.
4. Unadjusted Trial After posting journal entries to the individual general
Balance ledger accounts, an unadjusted trial balance is
prepared. The trial balance ensures that total debits
equals to the total credits in the financial records.
5. Analyzing The fifth phase in the cycle involves analyzing
Worksheet worksheets and finding and modifying entries. To

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 Entries guarantee that debits and credits are equal, a
worksheet is produced. Adjustments will have to be
made if there are any differences.
6. Adjusting Adjusting entries are created as a result of worksheet
Worksheet corrections and the results of the passage of time. For
Entries example, an adjusting entry may accrue interest
revenue that has accrued over time.
7. Creating Financial Adjusting entries are created as a result of worksheet
Statements corrections and the results of the passage of time. For
example, an adjusting entry may accrue interest
revenue that has accrued over time.
8. Closing the Books At the end of the quarter, an establishment uses
closing entries to finish temporary accounts, revenues,
and expenses. Transferring net income into retained
earnings is one of the closing entries. Finally, a
business produces a post-closing trial balance to check
that the debits and credits are correct, and the cycle
begins again.

To better understand the steps discussed above, let us take a look at an example
of a ledger generally used during the financial cycle.

(Life n.d.)

The example shows the account is for the electricity expense of an

establishment. It shows data on what or whom the account is, the account number,
date of entry, details, reference number, debit, credit, and balance. See definitions
below.

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Account—The account or account name can either be the type of account as in the
example above or it can refer to the account holder's name which could be the
name of the hotel’s guest.

Account number—A unique code composed of numbers, letters, or other characters,

and is assigned to the account to make it easier to be entered and accessed to in a
database.

Date of entry—The date when the transaction occurred or the data was entered into
the accounting system

Details—the information about the entry

Reference number—A unique identifier assigned to any financial transaction including

those made using a credit or debit card

Debit—An item on the left-hand side or column of an account that records an

amount owed. On a company's balance sheet, it is an accounting entry that leads in
either an increase in assets or a decrease in liabilities. It is an expense, or a sum of
money paid from an account, that causes an asset to grow or a liability to shrink.

Credit—an entry recording a sum received, listed on the right-hand side or column
of an account. It decreases the value of an asset or increases the value of a liability.
The columns should be added across and down and the total debits should equal
the total credits

Balance—During a financial term, the difference between the total of debit and
credit entries entered into an account. The account shows a debit balance when
total debits exceed total credits.

The general ledger is the main ledger used in a business financial accounting
and contains all the accounts a business uses in its double entry bookkeeping
system. Its main purpose is to provide a permanent record of all financial
transactions and balances classified by account.

Data entered in the general ledger come from the different folios, a folio is a
statement of all transaction that has taken place in a single account, and vouchers,
the detailed documentary evidences for a transaction, used during hotel financial
transactions such as:

Types of folios

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Guest folio—is assigned to charge for individual guests

Master folio—is assigned charge for group/organization

Non-guest folio—is assigned for non-resident guest

Employee folio—is assigned for hotel employee to charge against coffee shop privileges

A folio is a record of all the transactions that have occurred in a single

account. The front desk personnel keeps track of all transactions between the guest
and the hotel on the folio. The folio starts with a zero balance and gradually builds
or drops as transactions occur. On payment settlement, the folio balance must
return to zero at the moment of check-out.

Vouchers and Types

A transaction's vouchers are detailed documentary evidences. It moves the

transaction from the back office to the front. Vouchers are used to alert the front
desk of a guest's purchase or use of any hotel service.

Some of the typical vouchers used in hotels are:

Cash Receipt Voucher—is used to record cash or bank receipt. It represents receipt of
cash in hand.

Commission Voucher—A commission voucher is a record of individual sales that is

given to a salesperson. Also known as supplier receipts, they are utilized when a
hotel or auto rental provider sends you a check.

Charge Voucher—is utilized to assist a charge buy transaction that does not take
place at the front desk.

Petty Cash Voucher—is usually a simple form used to document a petty cash fund
disbursement (payment). Petty cash vouchers, often known as petty cash receipts,
are readily available at office supply stores. It should have space for the following
information: the date and amount of the disbursement.

Allowance Voucher—is used to support an account allowance

Cash Advance Voucher— is used to support cash flow out of the hotel, either directly
to or on behalf of the guest

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 What’s More

Activity I

Direction: Match column A with column B. Write the letter of the correct answer only.

A B
a. a. assigned for non-resident
1. Guest folio
guest
2. Employee folio b. b. assigned for hotel employee
to charge against coffee shop
privileges
3. Non-guest folio c. assigned to charge for
individual guests
4. Master folio d. assigned charge for
group/organization
5. Folio e. manages the financial
transactions of the business
with its customers and
clients
6. Accounting section f. statement of the transactions
that has taken place in a single
account

Activity II. Using your electricity or water bill for the past 2 months, make a sample
account entry to a general ledger (15 points).

NegOr_Q3_FOS9_Module3_v2
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 What I Have Learned
Directions: Write at least a two-paragraph essay about your learning on this
lesson/module using the following guide phrases.

I have learned that

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

I have realized that

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

I will apply

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
Essay Rubrics
Areas of
Assessment 10 points 7 points 4 points 1 point
Presents ideas Presents ideas
in an original in a consistent Ideas are too Ideas are vague
Ideas manner manner general or unclear

Organization Strong and Organized Some No

organized beg/mid/end organization; organization;
beg/mid/end attempt at a lack
beg/mid/end beg/mid/end

Understanding Writing shows Writing shows a Writing shows Writing shows

strong clear adequate little
understanding understanding understanding understanding

Mechanics Few (if any) Few errors Several errors Numerous

errors errors

TOTAL POINTS: /40

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 What I Can Do

Directions: Arrange the steps according to the process one needed to follow in the
accounting cycle. Write it on your activity notebook.

______1. Creating Financial Statements

______2. Identifying transactions

______3. Analyzing Worksheet Entries

______4. Adjusting Worksheet Entries

______5. Closing the Books

______6. Recording of transactions

______7. Posting

______8. Unadjusted Trial Balance

Assessment

Directions: Multiple Choice. Choose the letter of the correct answer. Write this activity
on your answer sheet.

1. This is issued to a salesperson and serves as a record of specific sales.

a. Commission Voucher c. Charge Voucher
b. Petty Cash d. Allowance

2. This is used to support a charge purchase transaction that takes place

somewhere other than the front office.
a. Commission Voucher c. Charge Voucher
b. Petty Cash d. Allowance

3. It is usually a small form used to document a disbursement (payment).

a. Commission Voucher c. Charge Voucher
b. Petty Cash d. Allowance
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4. Used to support an account allowance
a. Commission Voucher c. Charge Voucher
b. Petty Cash d. Allowance

5. Used to support cash flow out of the hotel, either directly to or on behalf of the
guest.
a. Cash advance Voucher c. Charge Voucher
b. Petty Cash d. Allowance

6. It is used to record cash or bank receipt. It represents receipt of cash in hand.

a. Cash advance Voucher c. Charge Voucher
b.Cash receipt d. Allowance

7. The transactions in which property is transferred from seller to buyer for money
or credit as in car sales or from service provider to clients or guest as in hotels,
spas, and resorts
a.Sales c. Receipts
b.Purchases d. Payments

8. The transactions that are required by a business in order to obtain the goods or
services needed to accomplish the goals of the organization
a. Sales c. Receipts
b. Purchases d. Payments

9. A written acknowledgement of having received or taken into ones possession a

specified amount of goods or money.
a. Sales c. Receipts
b. Purchases d. Payments

10. The transactions that refer to a business receiving money for a good or service
a. Sales c. Receipts
b. Purchases d. Payments

11. The account or account name can either be the type of account as in the example
above or it can refer to the account holder's name which could be the name of the
hotel’s guest.
a. account number c. account
b. debit d. credit

15
12. A unique code composed of numbers, letters, or other characters, and is assigned
to the account to make it easier to be entered and accessed to in a database.
a. account number c. account
b. balance d. credit

13. An entry recording an amount owed, listed on the left-hand side or column of an
account
a. account number c. account
b. debit d. credit

14. An entry recording a sum received, listed on the right-hand side or column of an
account
a. account number c. account
b. balance d. credit

15. The difference between the sum of debit entries and the sum of credit entries
entered into an account during a financial period.
a. account number c. account
b. balance d. credit

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 Answer Key

Voucher
. Cash Receipt 5 . b 15. d 10 . a 5
Voucher . d 14 . c 9 . d 4
. Cash Advance 4 . b 13 . b 8 . c 3
Voucher . a 12 . a 7 . b 2
.c 11 .c 6 .a 1
. Allowance 3
What I Know
Voucher
. Commission 2

. Charge Voucher 1
What’s New

.e 6 .a 3
.f 5 .b 2
.d 4 .c 1
What’s More

What’s In

. c. 12. a 6
. a. 11 . c. 5
.d 10. d. 4 3 . 56 . 2
.c 9. c. 15. b. 2 . 15 . 88 . 4
.b 8. b 14. d 2 1 . 74 . 67 . 3
.a 7. a 13 . b. 1
What I Can Do
Assessment

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References

Website

Photos | CANVA. (n.d.). Retrieved January 20, 2022, from https://www.canva.com/photos/

Book

Roldan, A. S. (2014). Introduction to Hotel & Front Office Operations. Skills Development
and Management Services, Inc.

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