Hotel Accounting guide

Accounts Receivable and City Ledger for Hotels

Track hotel accounts receivable invoice by invoice: allocate receipts, record TDS and short payments, age debts and send reminders automatically.

You see exactly which bills each company owes and how old they are. Earlier, a company had one master folio: guest bills moved onto it, a cheque was a payment against it, and fourteen invoices plus one receipt showed up as a single "on account" line.

How it works

Each bill you transfer to a company or travel agent becomes an open invoice on that party's ledger, due on a date set by its credit terms.

Ageing runs per invoice: current, 30, 60 and 90 days.
You see it for each branch and summed for the group.
A group statement shows a subtotal for every branch.

Receipts are applied to named invoices

Say the remittance reads "₹3,80,000 for invoices HTL-41, HTL-43 and HTL-47, after ₹7,600 TDS under 194C". You record every part of it:

Which invoices are paid and by how much
The TDS withheld, held as a receivable from the Income Tax department
Any short payment, with a reason such as dispute, discount or rounding

Money received without invoices against it stays at group level as an advance until you apply it.

Collections

Turn on scheduled reminders per company, and note each promise to pay along with who made it. Writing off a bad debt needs a reason, a name and a journal. Your provision for doubtful debts runs on a rule, so there is no year-end guesswork.

Other Hotel Accounting guides

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