Hotel Accounting guide

Vendor Payables With Three-Way Bill Matching

Keep one vendor master with PAN, GST, MSME and TDS details, and match each vendor bill to the GRN and purchase order before it becomes payable.

You pay the right supplier the right amount, once. Suppliers used to live inside the kitchen store as outlet records. That told you who supplied the tomatoes, but not who you owe. A hotel without a restaurant had no suppliers at all, and one linen vendor serving three hotels appeared three times.

One vendor for the whole group

Each supplier is set up once, with everything finance needs before paying:

PAN and type of GST registration
MSME status, since the law says MSMEs are paid first
The applicable TDS section
Whether reverse charge applies and whether input credit is blocked

Matching PAN or GSTIN flags duplicates.

Bank details need two people

One login proposes a change to a vendor's bank account and a different login approves it. This is the key defence against the classic payables fraud, and it is enforced by the database itself, not by a policy note.

Bills are matched first

A bill becomes payable only after it is compared with the goods received note and the purchase order, within tolerances you set. Any difference needs a written reason. On approval, TDS is recorded and a single purchase journal is posted; cancelling the bill reverses it.

How tax is handled

Where the vendor is registered, and how, sets the GST. Reverse-charge tax is self-assessed and blocked credit is expensed, each in its own column for the return.

Other Hotel Accounting guides

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