Hospitality Knowledge Center
Explore our verified library of Hospitality transactions. Every entry is reviewed for IFRS compliance and real-world accuracy by our technical accounting team.
How to Record a Hotel No-Show Fee When a Guest's Credit Card Is Charged for a Held Room
Recognizing revenue when a guest fails to arrive and the hotel charges the first night's rate against their guaranteed credit card.
How to Record a Guest Advance Deposit Received for a Future Hotel Booking
Recording cash received from a guest for a future stay as a liability until check-in occurs.
How to Post Daily Room Revenue During the Hotel Night Audit
Recognizing each night's room revenue and posting it to the guest folio during the automated night audit process.
How to Post Guest Incidental Charges to Room Folios During the Night Audit
Recording laundry, telephone, spa, and other ancillary charges to the guest folio during the nightly audit.
How to Clear a Guest Folio Balance at Check-Out When Paying by Credit Card
Moving the outstanding guest folio balance from the Guest Ledger to Credit Cards Receivable at check-out.
How to Transfer a Guest Folio Balance to the City Ledger for Corporate Direct Billing
Moving a corporate guest's charges from the in-house Guest Ledger to the City Ledger for invoicing to the company.
How to Recognize No-Show Revenue When a Pre-Paid Guest Fails to Arrive
Converting a guest's advance deposit to earned revenue when they fail to arrive and the cancellation policy permits retention.
How to Establish and Record a Front Desk Cash Float for the Hotel Reception
Setting up a permanent cash drawer for the front desk to handle guest change and small cash transactions.
How to Record a Cash Shortage Found During the Hotel Night Audit Reconciliation
Expensing the difference when physical cash is less than the POS report shows should have been collected.
How to Record a Foreign Currency Exchange Transaction Performed for a Hotel Guest
Recording the receipt of foreign currency and disbursement of local currency with the exchange commission as revenue.
How to Charge and Record an Early Departure Penalty Fee When a Guest Leaves Before Their Booked Check-Out Date
Recognizing contractual early departure revenue when a guest vacates before their reserved departure date.
How to Record an OTA Merchant Model Booking at Gross Revenue with Commission as a Separate Expense
Recording the full room rate as revenue and the OTA commission as a distribution expense when the OTA collects from the guest.
How to Accrue OTA Agency Model Commission Expense at Month-End Before Receiving the Invoice
Estimating and accruing the month's OTA commission owed to Booking.com or similar agency-model OTAs.
How to Record a Per-Reservation GDS Transaction Fee from Sabre, Amadeus, or Travelport
Expensing the fixed per-reservation fee charged by Global Distribution Systems for bookings made through travel agencies.
How to Record Wholesale Room Revenue Billed to a Tour Operator at a Net Contract Rate
Recognizing room revenue at the pre-agreed net wholesale rate when billing a tour operator for allotment rooms.
How to Record the Bank Credit Card Merchant Fee Deducted from a Guest Card Settlement
Recognizing the bank's processing commission when credit card batch settlements are received net of the merchant fee.
How to Record a Direct Commission Payment to a Local Travel Agent for a Group Booking
Clearing the accrued commission liability by paying a local travel agency that delivered a group reservation.
How to Record an OTA Visibility Booster or Accelerator Marketing Fee
Recording an additional commission paid to an OTA to increase the hotel's search ranking and visibility on the platform.
How to Record a Guest Walk Expense When a Hotel Relocates an Overbooked Guest to a Competitor Property
Expensing the cost of accommodation at a competitor hotel when a guest cannot be accommodated due to overbooking.
How to Reverse an Accrued OTA Commission When a Booking.com Guest Does Not Arrive and Is Not Charged
Reducing the OTA commission accrual when a no-show guest results in no charge and therefore no commission is owed.
How to Record a Monthly Channel Manager Software Subscription Fee
Expensing the monthly fee for software that synchronizes room rates and availability across all booking channels.
How to Post a Restaurant Meal Charged to a Guest's Room Folio
Recording an F&B sale where the guest charges their meal to their room instead of paying cash at the restaurant.
How to Distribute Collected Service Charges to Hotel Staff Through Payroll
Recording the payment of accumulated service charges to employees, clearing the Service Charge Payable liability.
How to Record an Internal Transfer of Staff Meal Costs from F&B to the Employing Department
Moving the food cost of employee meals from F&B COGS to the HR or departmental benefit expense.
How to Post Daily Mini-Bar Revenue to Guest Room Folios
Charging guests for mini-bar consumption by posting the items consumed to their room folio.
How to Record F&B Food Wastage and Spoilage from a Buffet or Over-Production
Adjusting F&B inventory downward for food prepared for a buffet that was not consumed and cannot be reused.
How to Re-Route Complimentary Breakfast Revenue from Rooms to the F&B Department
Splitting the allocated breakfast value out of the room rate and crediting it to F&B Revenue so the restaurant gets credit for included breakfast service.
How to Record the Purchase of Beverage Inventory Including Wine and Spirits for the Hotel Bar
Recording bulk beverage purchases as inventory assets until issued to the bar, at which point they become cost of sales.
How to Write Off Broken Crockery and Glassware from the Restaurant Operating Supplies Inventory
Expensing the cost of broken or chipped plates, glasses, and cutlery through regular operating supplies write-offs.
How to Recognize Banquet Revenue When a Wedding or Conference Deposit is Earned on Event Day
Converting a previously collected banquet advance deposit into F&B Revenue on the day the event is successfully delivered.
How to Accrue Monthly Kitchen Gas and LPG Costs Before the Utility Bill Arrives
Estimating and accruing kitchen gas consumption as an F&B operating expense under the accrual basis.
How to Record Meeting Room and Conference Hall Rental Revenue Under the MICE Department
Recognizing the pure space rental fee for a conference room or ballroom hire as MICE revenue.
How to Record AV Equipment Hire Revenue and Cost When the Hotel Sources Equipment from a Third-Party Vendor
Recording gross revenue and gross cost when the hotel acts as principal in arranging third-party AV equipment for a client event.
How to Recognize Event Cancellation Fee Income When a Client Forfeits Their Banquet Deposit
Releasing the forfeited banquet or wedding deposit from liability to income when a client cancels under the cancellation policy.
How to Charge and Record Group Attrition Fees When a Corporate Group Fails to Fill the Minimum Room Block
Invoicing a corporate group for shortfall fees when they fail to pick up the minimum contracted room nights.
How to Record a Vendor Referral Commission Received from a Wedding or Event Supplier
Recording a referral fee or commission received from a florist, photographer, or other supplier for recommending them to hotel event clients.
How to Split a Conference Delegate Day Rate Package Between Meeting Room and F&B Revenue
Allocating a bundled per-delegate conference package price between the space rental and food and beverage components.
How to Consolidate Individual Guest Room Charges into a Group Master Account for Corporate Billing
Moving all individual guest folios for a group into a single Master Account (City Ledger) for consolidated corporate invoicing.
How to Record Exhibition or Trade Show Booth Space Rental Income
Recognizing revenue from vendors who rent lobby or foyer space for commercial displays at hotel events.
How to Cross-Charge an Internal Department for Using a Hotel Conference Room for a Staff Meeting
Recording an internal cross-charge when the Marketing or other hotel department uses event space for their own meetings.
How to Accrue the Cost of Casual or Agency Staff Hired Specifically for a Banquet Event
Recognizing the wages cost for temporary staff engaged specifically for a one-night gala or conference banquet.
How to Accrue the Monthly Base Management Fee Payable to the Hotel Management Company
Recording the monthly management fee (typically 2–4% of Total Revenue) owed to the management company for operating the hotel.
How to Accrue an Incentive Management Fee When the Hotel Achieves GOP Performance Targets
Recording the performance-based management fee payable when the hotel's Gross Operating Profit meets or exceeds the contracted target.
How to Record the Monthly Franchise Royalty Fee Paid to the Hotel Brand
Expensing the monthly royalty fee paid to the franchisor for the right to use the brand name and systems.
How to Record the Loyalty Programme Assessment Fee When Hotel Guests Earn Brand Points
Expensing the fee paid to the brand's loyalty fund each time an enrolled guest earns points during their stay.
How to Record Loyalty Point Redemption Revenue When the Brand Reimburses the Hotel for a Free Stay
Recognizing room revenue reimbursement from the brand's loyalty fund when a member stays using earned points.
How to Amortize Hotel Linen and Towel (Terry) Costs as Operating Asset Consumption
Recording the monthly wear-and-tear expense on bedsheets, pillowcases, and towels as an amortization of the linen operating asset.
How to Fund the FF&E Reserve Account for Future Hotel Furniture, Fixtures, and Equipment Replacement
Setting aside a monthly cash contribution to a restricted FF&E Reserve account designated for future capital expenditure.
How to Record the Cost of a Complimentary Room Provided to a Media Influencer or PR Guest
Transferring the marginal cost of a complimentary room stay from the Rooms department to Marketing as a PR expense.
How to Record the Monthly Outsourced Laundry Service Cost for Hotel Linen and Guest Laundry
Expensing the monthly invoice from an external laundry company for washing hotel linen and guest items.
How to Record the Monthly Global Marketing Fund Assessment Paid to a Hotel Brand
Expensing the monthly contribution to the brand's central marketing fund, which funds national advertising and the central booking website.
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