SOP - Finance

Finance Department

Standa rd Op erating erating Proc Proc edure Upda Upd a te: 15.08 15.08.08 .08 C O -FI-S -FI-SO O P-Index P-Inde x

Hotels Hote ls & Re Re so rts Financ ina nc e Dep De p a rtment SO SO P Inde Inde x Cod e

To p i c To

Finance inanc e Depar Depa rtment 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

C O -FI-FI-S SO P-0 P-00 01 C O -FI-FI-S SO P-0 P-00 02 C O -FI-S -FI-SO P-0 P-003 03 C O -FI-S -FI-SO O P-004 P-004 C O -FI-S -FI-SO P-005 P-005 C O -FI-S -FI-SO P-006 P-006 C O -FI-S -FI-SO O P-007 P-007 C O -FI-S -FI-SO O P-0 P-008 08 C O -FI-FI-S SO P-0 P-00 09 C O -FI-S -FI-SO O P-010 P-010

Rec eiving eiving of G oods oo ds Ad vanc ed Payment C a sh Float loa t Handli Hand ling ng C red it C a rd C ommiss ommission Petty Pe tty C a sh Purc Purc has ha sing Proc Proc ed ures ures VA T Sa les Hand ling ling of Tra vel A gent ge nt Set M enu Payments Pa yments O ffic ffic er’s C hec k Store Requis Req uisiti ition on Form

©This ©This material material is co pyright pyright p rotec ted and is prop prop erty of Daniel G . Fuchs and Stepha n Fae ssler.

1

Finance Department

Standa rd Op erating Proc edure Upda te: 15.08.08 / C O-FI-SOP-001

Rec eiving of Goods Objective This SOP is to ensure that the quantity and q uality of the materials or goods rec eived a re in accordance with the required specification stated on the Purchase Order.

Responsibility Rec eiving clerk / Storekeep er

General Instruction • • •

•

•

All supp liers are to be instructed to deliver all goods to the rec eiving a rea . Supplier must deliver all goods within an agreed time frame stated by the Hotel/Resort. Before accepting any goods, the Receiving Clerk, and/or Store Keeper has to ensure that the purcha ses are supp orted by a pp roved purchase orders. No o rde rs, no d eliveries. Suppliers must be instructed to submit delivery notes (with completed and correct pricing details) together with goods. Supplier should be instructed that no invoice is paid unless they have copies signed by authorized personnel. In case the Hotel/Resort does not receive nec essary cop ies of the supplier’s invoice or delivery orders, the rec eiving c lerk must arrange the nec essary number of p hoto-stat c opies. The rec eiving clerk should rec eive information regarding pric e of items purchased in order to facilitate Food and Beverage inventory control and Food/Beverage cost recording so that inventory record can be up-to-date and daily Food and Beverage report can be produced on a timely basis.

Procedure •

•

•

The rec eiving clerk must inspect the goo ds rec eived by counting ea ch item a nd/ or c arefully weigh and cross-check against the specification contained in the respective purchase order, by invoice/ delivery order accompa nying the d elivery. Depending upo n goods being rece ived, the Department Head may be requested to inspect the quality of goods and reject items not meeting the purchase/qua lity spec ifica tions. For perishable food items; on examination where signs of deterioration is noticed , produc ts are to be rejected, by visual examination or in some cases by da te stamps used by vend ors. After chec king o f good s by the rec eiving c lerk, all invoices or delivery notes must be signed and rubber-stamped to show that the good s have been c hecked a nd a c cepted.

©This material is co pyright p rotec ted and is prop erty of Daniel G . Fuchs and Stepha n Faessler.

1

Finance Department


Advanc ed Payment Objective This SOP is to establish the procedure for inco me auditing to ensure that all revenue oc curred in every outlet is posted c ompletely, corresponding to the p rop er ca tegory of revenue.

Responsibility Income Auditor / Assistant Revenue &Credit Ma nag er

Procedures • • •

•

•

• • •

All advances requested need to be ap proved b y authorized personnel. All advances require rec eipts. Travel ad vance require travel expense report, a ccompa nied by rec eipts. The Travel Expense Report is intended to reflect a full accounting of the trip taken so that future trips can be properly budgeted. If a travel advance is received, travel Expense Form is due no later than 5 business days, following the return from the trip. In case of advances for purchasing supplies, the counting of 5 business days begins with the date following the reported reason for the advance. No a dvances are issued to any person who has outstanding a dvances. Rec eipts for credit ca rd bills must be attac hed to the c redit card statement. If “per diem” rates are used in co nnec tion with travel, no receipts are required.


1

Finance Department


C ash Float Handling Objective This SOP is to ensure, departments rec eiving cash float are aware of the related responsibilities and required proc edures.

Responsibility All ca shiers and a nyone who hand les cash floa t.

General Instruction • •

•

A c ash floa t is only issued to/ by the revenue c entre unit. The cash float must be kept in a sec ure, loc ked plac e under the control of cashiers or the persons who handle cash floats. The float can not be used for any other purpose, such as personal loa ns, purchases, salaries and wages etc.

Procedure •

•

•

•

Before every shift, all cashiers have to c ount the c ash float received/ prepa red by the C hief C ashier or any other designated assoc iate. At the end of shift, all cashiers must count and send the cash float & revenue to the designated person/ plac e such as to the C hief C ashier or the Safe Deposit Box. The c ount result of c ash floa t & revenue is reported in the c ash c ount report c orresponding to each point of sales. The name of person on that shift also needs to be reported. The cash on hand must be b alanced with the cash of the po int of sales and house fund. In case of missing c ash or shortag e, the C hief A ccountant is to investiga te a nd rep ort direc tly to the Financial Controller and General Manager; the respective shift can thus not be closed until all revenue/cost centres are b alanc ed.


1

Finance Department


C red it Card C ommission Objective This is to ensure that the amount of credit card co mmission, posted to General Ledger, is correc t and VAT for credit c ard commission are c laimed a s VAT purcha se.

Responsibility Assistant Revenue & C red it Ma nag er or designated personnel

Procedure •

•

•

•

The designated person will summarize the amount of credit ca rd c ommission and VA T purchase from the Tax Invoice rec eived from the c redit cards’ c ompany or bank by month end. Upon receiving of the Tax Invoice from the credit cards’ company or bank, it needs to be rec onc iled with all suppo rting b ank statements to ensure that the Hotel/ Resort rec eives all Tax Invoices for every credit ca rd pa yment transactions. The total amount of c redit ca rd c ommission and VA T purchase is posted to the General Ledger under the c redit ca rd commission a nd VA T purchase a ccount code at the end of month. All Tax invoices are sent to an outside accounting company for accounting and tax record.


1

Finance Department


Petty C ash Objective This SOP is to ensure that the person responsible for petty c ash is awa re of the related responsibilities and required procedures.

Responsibility Petty cash holder/C ustodian

Procedures • • •

•

•

•

•

•

•

•

Petty cash fund is kept in a locked, sec ure plac e. Access to the petty ca sh fund is restricted to petty ca sh holder and a b ack-up person. Petty cash is disbursed only by the petty cash holder (or a back-up person in the custodian's absence). To disburse petty c ash, original rec eipts are required. For rec onc iling, the rec eipts in the petty cash fund box are to be maintained. The p erson to be reimbursed should indica te on the original rec eipt all items purchased (if not ob viously stated on the receipt), the b usiness purpose, and de pa rtment to be c harged . The original rec eipts are approved and signed by an ap propriate, authorized individual, such as the Supervisor of the person to be reimbursed . The petty cash fund is not used for personal expenses, personal loa ns, or the c ashing of personal checks. The petty cash holder is responsible for regularly rec onc iling the petty cash fund (the sum of cash, plus original receipts, plus any other outstanding reimbursements is equal the full, original amount of the fund.) Periodically, unannounced spot check counts of the petty cash fund are performed by someo ne other than the petty cash holder, such as a Supervisor/C hief Ac countant. In the event of an unexplained petty cash shortage, petty cash holder or a back-up person is responsible for the shortage. This also needs an investiga tion by his/her Supervisor and the C hief Accountant or Financial Director.


1

Finance Department

Standa rd Op erating Proc edure Upda te: 15.08.08 / CO-FI-SOP-006

Purchasing Objective This SOP is to ensure, having strong internal controls ap plying to procurement and c ash disbursements relating to p urchasing activities and to ensure that all purcha sing of g oods and services of any nature is proc essed through the Purcha sing Department in accordance with established guidelines. This SOP is to ensure that requests for goo ds and services is made by the appropriate person and is properly approved by the mana gement ac c ording to the C ompa ny guidelines. This SOP is to ensure that payments are mad e only for goods and services which are properly authorized and received. C o n si st e n c y i n c o n t r o l o f • • •

Quality Freshness Price (season)

Advantage • •

Save storage space Prevent spo ilag e

Foo d item s • • • • • •

Fresh vege tab les Fruits Herbs, Spic es, Cond iments Meat, poultry Fish, Sea food All import products (expensive items)

Scope and Responsibility The Purchasing Polic y and Proc edure ap ply to all the dep artments a nd represents the minimum requirements towards the achievement of the Hotel/Resort objectives. All employees are responsible for complianc e with the applicab le policy and proce dures.

Procedure 1. Purchase Requisitioning •

Dep artments are responsible for initiating the purchase of goo ds or services req uired . The person who authorities the requisition should ensure that the items to be purchased are nec essary for the depa rtment’s operation and are within budget.

©This material is copyright protec ted and is property of Da niel G. Fuc hs and Stephan Faessler.

1

Finance Department


Purchasing •

The requests of goods and services is made by the requesting dep artments that have to consider the following information: 1. 2. 3. 4. 5. 6. 7. 8.

•

Ad equate q uantities (to meet PAR level) Rea sonable prices Timely rec eipt Desired quality Transportation costs involved Applicable VAT Purchases within budget Ap proved b y authorized person a ccording to C ompany limit

There are three ways for a n operating depa rtment or storekeeper to initiate a purchase of go od s or services: 1. 2. 3.

Raise a Purcha se Requisition Raise a Daily Market List (Pre-printed form) Ap ply for petty cash

A purcha se requisition is prepa red for all non-food items. Purchase of food items are handled by daily market list. A purcha se order is mad e a ccording to the requisition. •

The person in the depa rtment who has responsibility for raising requisitions prepares a prenumbered purchase requisition stating the following details: 1. 2. 3. 4. 5. 6. 7. 8.

•

•

Department name Date Required delivery da te Place of delivery Description o f good s or service and qua ntity required Price (if known)/ Ap plicab le discount negotiated Rea son for purchase Special instruction (of any)

The authorized person (Usually the depa rtment head) should review the items requested to ensure that they are necessary for the de pa rtment’s operation and that are within the app roved bud get before signing the Purchase Requisition as evidenc e of approval. The Purchase Requisition is distributed as follows: Original 2nd copy 3rd copy

Finance Department, to be attached to the Purc hase Orde r for matching with the payment supporting document Purchasing Department, filing in numerical order, for reference on purcha sing Requisition/ Department, for filing and follow-up of purcha se


2

Finance Department


Purchasing 2. Purchasing •

• •

•

•

•

•

Requisition for purchases must be reviewed to ensure that the amount of requisition is within the Company approval limit. Purcha se o rder is used at all times, showing quantities, price s, pa yment and shipping terms. C ompetitive bids or quotes are obtained prior to plac ing orders and d oc umentations is to be maintained to show that competitive bids were obtained . It’s the DHR policy to negotiate for discounts, for product quantities/amount exceeding a certain figure a greed as per Hotel/ Resort policy. It’s the DHR policy to obtain a minimum of three (3) quotations prior to submission for a Purchase Order. In selecting a supplier, purchasing has a short list of three potential suppliers. After obtaining quotations from the potential supp lies the purcha sing pe rsonnel must prepa re a pric e comparison. The purchase personnel must review the offers and select the supplies ba sed on the criteria setout. During the review of quotations they should consult with the Purchasing Manager to ensure that the best offer is selected. The purchasing personnel, after selection of the supplier, may ask the selected supplier for discount or better terms of payment, if possible. The selection criteria which should be a pplied in vendor selection are as follows: 1. 2. 3.

•

The VALUE FOR MONEY of the ma terials or goods from the suppliers The QUALITY of the offer compared with those at a lower price The PERFORMANCE of the supplier in terms of punctuality of delivery, after-sales-service, and cooperation with the c ompa ny

After selection of the supplier, the purchasing personnel should place the order with the supplier. The Purchasing Ma nager is responsible for issuing purchase orders, They a re to be issued in a numerical sequence stating the following details: 1. Date of Purchase Order 2. Vendor’s name and address 3. Description o f items to be purcha sed 4. Quantity 5. Unit price 6. Amount, VAT, Discounts 7. Purchase Requisition reference 8. Terms of payment 9. Date of d elivery 10. Delivery address

•

The app roval of purchase orders is made on running number of purc hase order form, reviewed for correctness and approved by the authorized person who has such authority to act on behalf of the Company guidelines (usually to Financial Controller and General Manager/or the de signated person).


3

Finance Department


Purchasing 3. Monitoring of Delivery •

•

The Purchasing Depa rtment is responsible for monitoring delivery to ensure that the supplier de livers the good s according to the schedule stimulated in the p urchasing o rder. The Purchasing personnel should perform a review of all the outstanding orders, including partially filled orders on a daily basis or more frequently as operational needs to expedite the delivery.

The purchase personnel keep s depa rtments informed of delivery dates. This is to enab le them to take any corrective actions if delivery cannot be made. Market List Sample:

Supp lier……. Tel:…………. Fax:………… Item

Order da te:……. Delivery da te:….

Price Unit

Unit Order

Received

Item

Vegetables

Pork

Asparagus Broccoli C arrots

Fillet Neck Belly

Condiments

Chicken

Bea n C ured Pickled Ginger

Hip Brea st Wings

Price Unit

Unit Order

Received

Fruits

Water Melon Seafood

Pineapple Papaya

Prawns Squid Snapper

Herbs

Basil hot Basil sweet

Signature __________________


4

Finance Department


VAT Sales Objective This SOP is to establish the proce dure for issuing official tax invoice and tax invoice (ab breviation) and to do VAT sales report to conform to the Revenue Department’s regulation.

Responsibility Inco me A uditor/Account Rec eivab le O fficer/Assistant Revenue &Credit Ma nager

Procedures for Issuing Tax Invoic e Official Tax Invoice •

•

Official Tax invoice is issued to Travel Agency/Tour Operator or Guests who request for Official tax Invoice. To c onform with the Revenue Depa rtment’s regulations, the de tails needed to be in the O fficial Tax Invoice are as follows: 1. 2. 3. 4. 5. 6. 7. 8.

•

•

The wording “Tax Invoice” Tax Identification Number of seller/service provider Name a nd add ress of seller/service provider Name and a dd ress of buyer/service receiver Running Number of Tax Invoice Date of issuing Tax Invoice Type of goods or service i.e. ac commoda tion, food& beverag e VAT value

At least 1 original and 1 copy of the Official Tax invoice is needed. Official Tax invoice is issued when the pa yment is rec eived and the payment amount is alrea dy paid-in to the bank account. The date on the official Tax Invoice is the date the Hotel/Resort rec eives the payment.

•

The correc tion or re-writing in an Official Tax Invoice is prohibited.

•

Type of pa yment (by cash, credit card, or cheque) needs to be specified.

•

•

C ashier/Bill Collec tor is to prep are the Tax Invoice and must sign his/her name on it. Official Tax Invoice (Original) is sent to the Travel Agency/Tour Operator by post on the next day after the Hotel/ Resort rec eives the p ayment. The cop y is kept in ‘M onthly VAT sales’ file.


1

Finance Department


VAT Sales Tax Invoice (Abbreviation) •

•

Tax Invoice (Ab breviation) will be issued in c ase of cash or credit ca rd pa yment by guests who do not request for Official tax Invoice . This is considered a selling to retail guests. To conform with Revenue Department’s regulations, the details need ed to be in Official Tax Invoice are as follows: 1. 2. 3. 4. 5. 6.

•

•

The word “Tax Invoice (Abb reviation)” Tax Identification Number of seller/service provider Running Number of Tax Invoice Date of issuing Tax Invoice Type of goods or service i.e. Ac commoda tion, Food & Beverag e Total amount , which indica tes that this price is VAT included

Tax Invoice (Abb reviation) will be issued after we summarize VAT sales from tax Invoice (Abbreviation). The copy will be kept in Monthly VAT sales file. Tax Invoice (Abb reviation) is not needed to be sent to anybod y. But, it needed to be issued according to Revenue Department’s regulations in order to be an evidence of goods selling or service providing.

Proc edures for Preparing VATSales report VATSales Report •

To c onform with the Revenue Depa rtment’s regulations, the details needed to be in Official Tax Invoice are as follows: 1. The word “VAT sales report” 2. Month and year 3. Tax Identification Number 4. C ompany name 5. Business name 6. Specific whether it is head o ffice or branc h 7. No. of Tax Invoice 8. Buyer’s name 9. Amount before VAT 10. VAT value 11. Total Amount

•

It is sep arated into 2 sec tions: 1. 2.

VAT sales from Tax Invoice (Ab breviation) VAT sales from O fficial Tax Invoice

Each of them will be running number separately.


2

Finance Department


VAT Sales •

VA T sales file is comprise of: 1. 2. 3.

•

VAT sales report C opy of Official Tax Invoice C opy of Tax Invoice (Ab breviation)

VAT sales amount will be reported together with VAT purcha se amount to Revenue Dep artment within the 15th of next month b y using the PP.30 form.

VAT sales from Official Tax Invoice •

•

VAT sales from Official Tax Invoice are summarized from Official Tax invoice which is issued to Travel Agenc y/Tour Op erator or Guests who request for Official tax Invoice. The proce dures to summarized this are described as follows (depending on Ac c ounting Softwa re used ), i.e.: 1. 2. 3. 4. 5. 6. 7. 8. 9.

Go to C armen Inventory Program Select Account Receivable Module Go to Report Select Account Receivable Select Transaction Summary Select Preview Report Select Date from & to, Order by ac count code, View b y detail, ok Summarize only ba nk payment transaction (Pa yment by Travel Agent/ Tour Op erator) C ross chec k with Official Tax Invoice (Copy) issued

VAT sales from Tax Invoice (Abbreviation) •

•

VAT sales from Tax Invoice (Ab breviation) a re summarized from the a mount of cash and c red it card p ayment by retail guests at each outlet and front office. The procedures to summarized this are described as follows(depending on Ac counting Software used ), i.e.: 1. 2. 3. 4. 5.

Go to Ama deus System Selec t Ac counting (from Tool bar) Selec t J ournal, then Posting J ournal Select date from &to, then GO Summarize o nly transaction p ayments which a re cash and credit card, then export to excel file.


3

Finance Department


Handling of Travel Agent Set Menu Payments Objective: This is to ensure the correc t handling of all travel agent-related pa yments in rega rds to set menu payments.

Procedures: 1. 2.

Meal contrac ts are issued to domestic agents. C lients rec eives vouc her by direc t payment through agent.

3.

C lient hands vouc her to outlet manager/ assoc iate.

4.

C ashier cross-chec ks the voucher of its validity (by using an internal c onfirmed travel agent list).

5.

C lient receives set menu.

6.

C ashier issues a manually-written statement without using p rices for the set menus by using the correc t name o f set menu and number of person(s) - Payment will state only beverage pa yments with app licable service cha rge and tax - C ashier logs all vouc hers rec eived by guests for rec ording purpo se

7.

G uest makes direc t or credit card pa yment to outlet for the beverages.

8.

C ashier po sts respective set(s) and c orrec t number of person(s) into POS including discount.

9.

Ac c ounting Department issues a tax invoice to respe ctive a gent with listed net price after discount with c onfirmed person(s) dined at the restaurant and attac hed original vouc her(s) of respective agent.

10.

Original invoice is faxed or personally sent to all agents on a weekly basis by noticing the agents beforehand to prepare the payment.

11.

7 days credit is given as contrac ted to complete the pa yment by ba nk transfer or cash payment.

12.

If agent does not p ay within 7 days, cred it is extende d to 14 days, if agent is over limit at this point no bookings are ac cepted.

13.

If agent does not pa y after 14 days, bookings of respective agent are rejec ted until agent makes payment of the entire outstanding amount.


1

Finance Department


Handling of Travel Agent Set Menu Payments Process Diagram: Start of proc ess

Contract issued to domestic agent

Clients receive voucher through agent No C ashier c ross-c hec ks validity of vouc her

Invalid voucher is rejec ted: Apologize to guest and ask to dine a la carte offering an FOC a eritif

C lient rece ives set menu a t outlet Yes Issue manually written statement w/o set menu price, incl. beverage consumption, service C H & taxes

C ashier records vouc her

Follow STD service se ue nc e

C lient makes direc t or c c pa yment

C ashier po sts set in POS

End of p rocess

Ac c ounting Depa rtment issues tax invoice: - Incl. net pric e a fter disc ount - Attached original vouchers - Number of p erson - Type of Set menu - Date/ Time/ Outlet/ Signature/ Stamp

Inform agent to prepare a me nt

Sent fax

No

Ma ke pe rsona l visit

Date after received invoice, 7 days credit to c o m le te a me nt

Age nt do es not pay

Extend credit to 14 days to com lete a ment

Ag ent pa ys by c ash or bank transfer Age nt do es not pay

End o f proc ess

Dep end ing on outstand ing a mount (Limit: THB 20,000) Stop accepting bookings until agent pays


2

Finance Department


Officer’s C hec k

Objective This SOP is to outline the proce dure and polic ies of Officer’s chec k and to ensure that all depa rtments conc erned a dhere to it strictly. It is further a benefit for Assistant and Head of Depa rtments and to c hec k the q uality of the Food & Beverage servic e.

Responsibility Bene ficiaries, F&B service a ssoc iates, Cashier, Inco me A uditor

Policies •

•

•

•

•

• •

•

Officer’s check privileges are assigned (with a specific amount) to certain members of the mana gement of the Hotel/Resort. The Officer’s chec k of the restaurant is issued with sales prices, but the Officer’s check is ac counted as per cost price. The O fficer’s chec k privilege is an integral part of the management member pa ckag e/ benefit and for their use at their sole discretion. The management c an use the benefit d uring both working hours and non-working hours and should prevent to use this benefit during pea k times. During duty hours responsible management can not order alcoholic beverages, however after working hours as long as it is not excessive, they can. The mana gement can order take-away. The management can invite a friend or family member as long a s the amount does not exceed the monthly F&B allowance. In ca se o f over credit; Finance Depa rtment cha rges the beneficiary sales prices.

Procedures •

•

•

• •

•

F&B Server/C aptain/Ma nag er has to issue a C aptain Order, to be attac hed with the Officer’s C heck each time. The management who uses the Officer’s chec k must sign it within the same da y. If there is no signature, the a mount it will be charged to the C ity Led ger. C ashiers at ea ch outlet have to send all Officers’ c hec ks to the Income A uditor/C ost Controller after shift closing. At the night time, all OC are sent to its respective plac e. Officer’s C hec k Report must be forwarded to the G eneral Manager daily for acknowledgement. Income Auditor has to issue a monthly summary of all Officers’ checks for each person and forward to the G eneral Ma nager ac cordingly. For Management member(s) who uses this benefit over limit; the Income Auditor is to inform the management respectively, the associate has to pay and balance his/her allowance the following month.

©This material is cop yright protec ted and is property of Da niel G. Fuchs and Stepha n Faessler

1

Finance Department

Standa rd Op erating Proc edure Upda te: 15.08.08 C O-FI-SOP-010

Store Requisition Form


1

SOP - Finance

Recommend Documents