City ledger
Encyclopedia
In hotel
accounting, the city ledger is the collection of accounts belonging to non-registered guests. This is distinct from the transient ledger (or front-office ledger, or guest ledger), which is the collection of accounts receivable for guests who are currently registered.
The vast majority of accounts in the city ledger are accounts receivable
(one notable exception is the advance deposit account discussed below, which is an account payable
).
Included in the city ledger are accounts belonging to various companies that utilize the hotel for meeting space and for lodging travelling executives. Instead of billing separately for each individual service that the hotel provides, the charges are accumulated in the company's city ledger account. The hotel then periodically sends the bill to the company.
The second major component of the city ledger are credit card
accounts. When a guest uses a credit card, this transaction creates an account receivable for the hotel to be collected from the credit card company. This account receivable is recorded in the credit card company's city ledger account.
As mentioned above, advance deposits are an example of an account payable found in the city ledger. When a guest pays a deposit prior to registration, the hotel incurs an account payable to the guest for services to be rendered in the future. Advance deposits from all guests are collected in a common advance deposit account. This amount is then transferred back to the guest's front-office account (folio) upon check-in.
Hotel
A hotel is an establishment that provides paid lodging on a short-term basis. The provision of basic accommodation, in times past, consisting only of a room with a bed, a cupboard, a small table and a washstand has largely been replaced by rooms with modern facilities, including en-suite bathrooms...
accounting, the city ledger is the collection of accounts belonging to non-registered guests. This is distinct from the transient ledger (or front-office ledger, or guest ledger), which is the collection of accounts receivable for guests who are currently registered.
The vast majority of accounts in the city ledger are accounts receivable
Accounts receivable
Accounts receivable also known as Debtors, is money owed to a business by its clients and shown on its Balance Sheet as an asset...
(one notable exception is the advance deposit account discussed below, which is an account payable
Accounts payable
Accounts payable is a file or account sub-ledger that records amounts that a person or company owes to suppliers, but has not paid yet , sometimes referred as trade payables. When an invoice is received, it is added to the file, and then removed when it is paid...
).
Included in the city ledger are accounts belonging to various companies that utilize the hotel for meeting space and for lodging travelling executives. Instead of billing separately for each individual service that the hotel provides, the charges are accumulated in the company's city ledger account. The hotel then periodically sends the bill to the company.
The second major component of the city ledger are credit card
Credit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...
accounts. When a guest uses a credit card, this transaction creates an account receivable for the hotel to be collected from the credit card company. This account receivable is recorded in the credit card company's city ledger account.
As mentioned above, advance deposits are an example of an account payable found in the city ledger. When a guest pays a deposit prior to registration, the hotel incurs an account payable to the guest for services to be rendered in the future. Advance deposits from all guests are collected in a common advance deposit account. This amount is then transferred back to the guest's front-office account (folio) upon check-in.