{"id":605,"date":"2023-11-10T14:00:43","date_gmt":"2023-11-10T14:00:43","guid":{"rendered":"https:\/\/e360hospitality.com\/?p=605"},"modified":"2024-05-01T23:16:47","modified_gmt":"2024-05-01T23:16:47","slug":"hotel-billing","status":"publish","type":"post","link":"https:\/\/e360hospitality.com\/hotel-glossary\/hotel-billing\/","title":{"rendered":"Hotel Billing: What Is Hotel Billing Process?"},"content":{"rendered":"\n<p style=\"font-size:17px\" class=\"\"><strong>What is a hotel&nbsp;bill?<\/strong> Every time a guest reserves a hotel room, the front desk opens a bill associated with the reservation for billing and invoicing. The hotel cashiers and other systems post the charges and payments of the guest to the bill.<\/p>\n\n\n\n<p class=\"\">The billing with its itemized postings acts as a statement of charges throughout the guest\u2019s stay. When you print this billing, it becomes an invoice, which in hotels\u2019 terms, is a <a href=\"https:\/\/e360hospitality.com\/hotel-glossary\/hotel-folio-what-is-a-perfect-hotel-folio\/\" target=\"_blank\" rel=\"noreferrer noopener\">guest folio<\/a>. And, after the guest checks out, the financial data stays with the guest\u2019s profile in the hotel management software for historical and statistical purposes.<\/p>\n\n\n\n<p class=\"\">If you&#8217;re looking for hotel billing software, check out <a href=\"https:\/\/www.capterra.com\/resources\/4-low-cost-and-free-hotel-billing-software-options-compared\/\" target=\"_blank\" rel=\"noopener\" title=\"\">here<\/a> for a comparison.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"\">Let&#8217;s, have a look at what a typical guest&nbsp;billing&nbsp;window in&nbsp;a hotel looks like:<\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img decoding=\"async\" width=\"812\" height=\"602\" src=\"https:\/\/i0.wp.com\/e360hospitality.com\/wp-content\/uploads\/2023\/11\/hotel-billing-1x.jpeg?resize=812%2C602&#038;ssl=1\" alt=\"Hotel billing\" class=\"wp-image-635\" style=\"width:600px\" srcset=\"https:\/\/i0.wp.com\/e360hospitality.com\/wp-content\/uploads\/2023\/11\/hotel-billing-1x.jpeg?w=812&amp;ssl=1 812w, https:\/\/i0.wp.com\/e360hospitality.com\/wp-content\/uploads\/2023\/11\/hotel-billing-1x.jpeg?resize=500%2C371&amp;ssl=1 500w, https:\/\/i0.wp.com\/e360hospitality.com\/wp-content\/uploads\/2023\/11\/hotel-billing-1x.jpeg?resize=300%2C222&amp;ssl=1 300w, https:\/\/i0.wp.com\/e360hospitality.com\/wp-content\/uploads\/2023\/11\/hotel-billing-1x.jpeg?resize=768%2C569&amp;ssl=1 768w, https:\/\/i0.wp.com\/e360hospitality.com\/wp-content\/uploads\/2023\/11\/hotel-billing-1x.jpeg?resize=101%2C75&amp;ssl=1 101w, https:\/\/i0.wp.com\/e360hospitality.com\/wp-content\/uploads\/2023\/11\/hotel-billing-1x.jpeg?resize=480%2C356&amp;ssl=1 480w, https:\/\/i0.wp.com\/e360hospitality.com\/wp-content\/uploads\/2023\/11\/hotel-billing-1x.jpeg?resize=800%2C593&amp;ssl=1 800w\" sizes=\"(max-width:767px) 480px, (max-width:812px) 100vw, 812px\" data-recalc-dims=\"1\" \/><\/figure><\/div>\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Are_The_Benefits_of_Hotel_Billing_System\"><\/span>What Are The Benefits of Hotel Billing&nbsp;System?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<ul class=\"\">\n<li class=\"\">The hotels don&#8217;t use an invoicing software even though it is a business like any other.&nbsp;But hotels use a comprehensive property management system which has its invoicing module for posting hotel charges.<\/li>\n<\/ul>\n\n\n\n<ul class=\"\">\n<li class=\"\">Hotels sell their products and services to the customers (guests) to make revenues to run the business and make a profit.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"\">\n<li class=\"\">A guest bill is opened from the time the guest checks in and closed when the guest checks out settling the bill. During this time, the hotel posts various charges on the bill and collects payment at the checkout.<\/li>\n<\/ul>\n\n\n\n<ul class=\"\">\n<li class=\"\">Billing is a must for printing invoices, which is a legal requirement, keeping track of guest consumption and payments. And, it is the first entry point of a journal (posting) into the hotel\u2019s complex financial management.<\/li>\n<\/ul>\n\n\n\n<p class=\"\">Later in the post, we will simplify where a posting on a guest bill ends up on the financial reporting of a hotel.&nbsp;<\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_The_Content_of_Hotel_Bill\"><\/span>What Is The Content of Hotel&nbsp;Bill?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"\">A guest folio, which is the print copy of the billing (\u2018billing window\u2019 to be precise) in a hotel should contain the following:<\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img decoding=\"async\" width=\"812\" height=\"603\" src=\"https:\/\/i0.wp.com\/e360hospitality.com\/wp-content\/uploads\/2023\/11\/hotel-billing-2x.jpeg?resize=812%2C603&#038;ssl=1\" alt=\"\" class=\"wp-image-636\" style=\"width:600px\" srcset=\"https:\/\/i0.wp.com\/e360hospitality.com\/wp-content\/uploads\/2023\/11\/hotel-billing-2x.jpeg?w=812&amp;ssl=1 812w, https:\/\/i0.wp.com\/e360hospitality.com\/wp-content\/uploads\/2023\/11\/hotel-billing-2x.jpeg?resize=500%2C371&amp;ssl=1 500w, https:\/\/i0.wp.com\/e360hospitality.com\/wp-content\/uploads\/2023\/11\/hotel-billing-2x.jpeg?resize=300%2C223&amp;ssl=1 300w, https:\/\/i0.wp.com\/e360hospitality.com\/wp-content\/uploads\/2023\/11\/hotel-billing-2x.jpeg?resize=768%2C570&amp;ssl=1 768w, https:\/\/i0.wp.com\/e360hospitality.com\/wp-content\/uploads\/2023\/11\/hotel-billing-2x.jpeg?resize=101%2C75&amp;ssl=1 101w, https:\/\/i0.wp.com\/e360hospitality.com\/wp-content\/uploads\/2023\/11\/hotel-billing-2x.jpeg?resize=480%2C356&amp;ssl=1 480w, https:\/\/i0.wp.com\/e360hospitality.com\/wp-content\/uploads\/2023\/11\/hotel-billing-2x.jpeg?resize=800%2C594&amp;ssl=1 800w\" sizes=\"(max-width:767px) 480px, (max-width:812px) 100vw, 812px\" data-recalc-dims=\"1\" \/><\/figure><\/div>\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<ol class=\"\">\n<li class=\"\">The hotel info with the address and contact info.<\/li>\n\n\n\n<li class=\"\">Addressee name: It can be the guest&#8217;s name. Depending on whom the folio is addressed, it can also be a company name or a travel agent name.&nbsp;In the above image, you can see two windows, one for the guest and the other for his company.<\/li>\n\n\n\n<li class=\"\">Confirmation number (or booking number). Bookings that hotels receive through central reservation systems (if it is part of a group or hotel chain), OTAs (online travel agents), and other booking sites have an additional reference number that can also be part of the guest folio.<\/li>\n\n\n\n<li class=\"\">It should have a stay date range. Typically, this is the date range from the check-in date until the checkout date. However, if you print the folio in the middle of the guest\u2019s stay, it can mean it is an informational folio, which the guest might have asked to print for whatever reason. Therefore \u2018Folio Type\u2019 indication would help understand better.<\/li>\n\n\n\n<li class=\"\">Other crucial details include room number, print date, and cashier who printed the folio.<\/li>\n\n\n\n<li class=\"\">Then comes the transaction details with the date posted, the description of the charge, and the amount posted, which can be positive if it is debit or negative in case it is a payment or adjustment transaction. More on this under section: <em>What is an itemized hotel bill?&nbsp;<\/em><\/li>\n\n\n\n<li class=\"\">Preferably, the guest&#8217;s and the cashier&#8217;s signature on the final \/ settlement folio.<\/li>\n<\/ol>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_An_Itemized_Hotel_Bill\"><\/span>What Is An Itemized Hotel&nbsp;Bill?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"\">An itemized bill simply means that the bill contains the details of every charge separately.&nbsp;<\/p>\n\n\n\n<p class=\"\">For instance, you paid $57.50 for your lunch check at the Atrium restaurant. An itemized bill should show the breakdown of your lunch check like Atrium Food: $30, Atrium Beverage $12, Tobacco $8, F&amp;B Tax $6.3, and Tobacco Tax $1.2.<\/p>\n\n\n\n<p class=\"\">Hotels use charge codes to post each charge into the guest billing called \u2018transaction codes\u2019. These codes uniquely identify the charge type such as Atrium Food, Atrium Beverage, Tobacco, and so on.<\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Does_The_Hotel_Billing_System_Work\"><\/span>How Does The Hotel Billing System&nbsp;Work?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"\">Every PMS system has a section to handle guest billing, which works like a hotel billing software. Even though system-to-system might differ in features and user experience, they all work according to accounting principles, debits, and credits.<\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_List_of_Items_In_Hotel_Bill\"><\/span>The List of Items In Hotel&nbsp;Bill<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"\">As discussed earlier section: <em>What is an itemized hotel bill?<\/em> you know what those items are. We will see briefly what defines these transaction codes.<\/p>\n\n\n\n<p class=\"\">At the top level, these charge codes can be Debit or Credit. No, not accounting here&nbsp;\ud83d\ude42 A Debit is a charge a hotel posts when a guest consumes a hotel service or product. Credit is posted when the guest makes a payment.<\/p>\n\n\n\n<p class=\"\">Sample Debit \/ Credit charges (Remember, a hotel can use hundreds of charges depending on the level of details they want to track and report their revenue, for instance, they can keep it simple like Coffee Shop Food, Coffee Shop Beverage or they can drill down to Coffee Shop Food &#8211; Breakfast, etc., you got the point):<\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-4 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:100%\">\n<div class=\"wp-block-columns has-white-background-color has-background is-layout-flex wp-container-core-columns-is-layout-3 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:100%\">\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-2 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:100%\">\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-1 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-vertically-aligned-center has-white-background-color has-background is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:100%\">\n<figure class=\"is-style-stripes wp-block-table\"><table class=\"has-white-background-color has-background has-fixed-layout\"><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Debit postings<\/strong><\/td><td class=\"has-text-align-left\" data-align=\"left\"><strong>Credit postings<\/strong><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Accommodation<\/td><td class=\"has-text-align-left\" data-align=\"left\">Cash<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Extra Bed<\/td><td class=\"has-text-align-left\" data-align=\"left\">Maater Card<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">No Show Charges<\/td><td class=\"has-text-align-left\" data-align=\"left\">Visa Card<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Cancelation Charges<\/td><td class=\"has-text-align-left\" data-align=\"left\">Master Card<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Accommodation Rebate<\/td><td class=\"has-text-align-left\" data-align=\"left\">Amex<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Coffee Shop Food<\/td><td class=\"has-text-align-left\" data-align=\"left\">Cash Deposit<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Coffee Shop Beverage<\/td><td class=\"has-text-align-left\" data-align=\"left\">Master Card &#8211; Deposit<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Coffee Shop Package<\/td><td class=\"has-text-align-left\" data-align=\"left\">Visa Card &#8211; Deposit<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Laundry<\/td><td class=\"has-text-align-left\" data-align=\"left\">Bank Transfer<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Telephone<\/td><td class=\"has-text-align-left\" data-align=\"left\">JCB<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Recreation<\/td><td class=\"has-text-align-left\" data-align=\"left\">AliPay<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Tax<\/td><td class=\"has-text-align-left\" data-align=\"left\">Wire Transfer<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Service Charge<\/td><td class=\"has-text-align-left\" data-align=\"left\">Check<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Restaurant Tips<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/docs.oracle.com\/cd\/E98457_01\/opera_5_6_core_help\/direct_billing.htm\" target=\"_blank\" rel=\"noopener nofollow\" title=\"\">City Ledger<\/a> (Direct Bill)<\/td><\/tr><\/tbody><\/table><\/figure>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Are_The_Types_of_Hotel_Revenue\"><\/span>What Are The Types of Hotel&nbsp;Revenue?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"\">If the transaction code is of \u2018debit\u2019 type, it should contribute to one of the below revenue types (revenue buckets) for the hotel to evaluate how each of the major sources performs and for other reporting and revenue management purposes:<\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Lodging<\/strong>: Rooms revenue, a major source of revenue for hotels.<\/td><td class=\"has-text-align-left\" data-align=\"left\"><strong>Taxes<\/strong>: Government levy, this is not a revenue to hotels, but they need to track this for taxation. <\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Food &amp; Beverage<\/strong>: The second most revenue source.<\/td><td class=\"has-text-align-left\" data-align=\"left\"><strong>Non-revenue<\/strong>: This is also not revenue for hotels but these are not government levies. For instance, Service Charges or posting of taxi fares. In both cases, the payment is collected by the hotel to pay back to someone else.<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Miscellaneous (Others)<\/strong>: This includes charges from laundry, telephones, minibars, spas, health clubs, business-center, or anything that is not the first two described.<\/td><td class=\"has-text-align-left\" data-align=\"left\"><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-columns has-vivid-cyan-blue-background-color has-background is-layout-flex wp-container-core-columns-is-layout-5 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:2px\"><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:96%\">\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-white-color has-text-color has-link-color wp-elements-f9a38dc7d92fa462055c770724831230\">Revenue type is not a concern of any guest, they help hotel operations only. <\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:2px\"><\/div>\n<\/div>\n\n\n\n<div style=\"height:55px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The billing with its itemized postings acts as a statement of charges throughout the guest\u2019s stay. When you print this billing, it becomes an invoice, which in hotels\u2019 terms, is a guest folio.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"ub_ctt_via":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[34],"tags":[47,46,48],"aioseo_notices":[],"featured_image_src":null,"author_info":{"display_name":"Staff Writer","author_link":"https:\/\/e360hospitality.com\/author\/staff-writer\/"},"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","wps_subtitle":"","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/e360hospitality.com\/wp-json\/wp\/v2\/posts\/605"}],"collection":[{"href":"https:\/\/e360hospitality.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/e360hospitality.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/e360hospitality.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/e360hospitality.com\/wp-json\/wp\/v2\/comments?post=605"}],"version-history":[{"count":4,"href":"https:\/\/e360hospitality.com\/wp-json\/wp\/v2\/posts\/605\/revisions"}],"predecessor-version":[{"id":1593,"href":"https:\/\/e360hospitality.com\/wp-json\/wp\/v2\/posts\/605\/revisions\/1593"}],"wp:attachment":[{"href":"https:\/\/e360hospitality.com\/wp-json\/wp\/v2\/media?parent=605"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/e360hospitality.com\/wp-json\/wp\/v2\/categories?post=605"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/e360hospitality.com\/wp-json\/wp\/v2\/tags?post=605"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}