{"id":930,"date":"2024-01-31T21:58:26","date_gmt":"2024-01-31T21:58:26","guid":{"rendered":"https:\/\/e360hospitality.com\/?p=930"},"modified":"2024-02-28T16:42:41","modified_gmt":"2024-02-28T16:42:41","slug":"what-is-city-ledger-in-hotel","status":"publish","type":"post","link":"https:\/\/e360hospitality.com\/hotel-glossary\/what-is-city-ledger-in-hotel\/","title":{"rendered":"What Is City Ledger In\u00a0Hotel?"},"content":{"rendered":"\n

City Ledger is a list of company\/travel agent accounts that owe hotels money since their employees or representatives stayed at the hotel on a credit basis.<\/p>\n\n\n\n

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<\/span>What Is the Primary Function of the City Ledger?<\/span><\/h2>\n\n\n\n
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City ledger is a traditional term used only in the hotel industry for Accounts Receivables, and we know that Accounts Receivable or AR is credit sales.<\/p>\n\n\n\n

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In the early days, hotels only provided credit facilities to companies within the city limits wherever the hotels were located. They maintained the receivable records in the ledger, which they called the \u2018city ledger\u2019.<\/p>\n\n\n\n

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The hotels use the city ledger to record credit sales, track the aging of pending payments, and send reminders and statements to the companies that owe the hotels for collection purposes.<\/p>\n\n\n\n

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<\/span>City Ledger Example: How Does City Ledger (Direct Billing) Work With Hotels?<\/span><\/h2>\n\n\n\n
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  1. A company (travel agent or governmental organization) requests for direct billing (City ledger) privilege from the hotel.<\/li>\n\n\n\n
  2. The hotel\u2019s sales department works with the company to obtain relevant documents and checks the eligibility in line with the hotel\u2019s credit policy. Note: Depending on the checks and eligibility of a company, the hotel determines the credit limit.<\/li>\n\n\n\n
  3. Once approved after fulfilling the standard procedures, the hotel is ready to accept the guests sent by the company for direct billing. <\/li>\n\n\n\n
  4. Individual guests, despite being booked by credit-approved companies, should be authorized by the hotel front office manager or supervisor before his\/her charges can be settled to the company\u2019s city ledger account (also called, AR accounts).<\/li>\n\n\n\n
  5. City ledger authorized guests when checking out, the hotel cashier will settle the charges to the city ledger payment method instead of cash or credit card. These charges will automatically be transferred to guests\u2019 company accounts in the city ledger.<\/li>\n<\/ol>\n\n\n\n
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    Whether you are a beginner or already an expert hotelier, we recommend this book.<\/p>\n\n\n\n

    Note: If you buy we might get a commission.<\/p>\n<\/div>\n\n\n\n

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