Chapter 9 Accounting Applications Managing Technology in the

Chapter 9 Accounting Applications Managing Technology in the Hospitality Industry Fourth Edition (469 T or 469) © 2003, Educational Institute

Competencies for Accounting Applications 1. Identify features and functions of an accounts receivable module for an automated accounting system and explain how managers use accounts receivable reports generated by the accounting system. 2. Identify features and functions of an accounts payable module for an automated accounting system and explain how managers use accounts payable reports generated by the accounting system. © 2003, Educational Institute (continued)

Competencies for Accounting Applications (continued) 3. Identify characteristics of hospitality operations that affect the design of a back office payroll module for an automated accounting system. 4. Identify characteristics of hospitality operations that affect the design of inventory and purchasing modules for an automated accounting system. © 2003, Educational Institute

Accounts Receivable Module Functions · Maintains account balances. · Processes billings. · Monitors collection activities. · Generates aging of accounts receivable reports. · Produces an audit report. · May contain credit history data. © 2003, Educational Institute

Customer Master File Data · Account code · Contact person · Name of guest or account · Type of account · Address · Credit limit · Telephone number · Last payment date · E-mail address · Last payment amount · Web site address · Credit history © 2003, Educational Institute

Accounts Payable Module Functions · Posts purveyor invoices. · Monitors vendor payment discount periods. · Determines amounts due. · Produces checks for payment. · Facilitate reconciliation of cleared checks. · Generates reports. © 2003, Educational Institute

Vendor Master File Data · Vendor name · Discount terms · Contact name · Discount account number · Address · Telephone number · E-mail address · Web site address · Vendor payment priority © 2003, Educational Institute · Invoice description · Payment date · Year-to-date purchases

Payroll Module Functions · Maintains employee master file. · Calculates gross and net pay. · Prints paychecks. · Produces payroll tax registers and reports. · Prepares labor cost reports. © 2003, Educational Institute

Employee Master File Data · Company employee number · Name of employee · Address of employee · E-mail address of employee · Social security number · Job classification(s) · Wage rate code(s) · Withholdings · Deductions © 2003, Educational Institute

Inventory Master File · Item name · Product group code · Item description (brief) · Vendor identification number · Inventory code number · Storeroom location code · Item purchase unit · Purchase unit price · Item issue unit © 2003, Educational Institute · Order lead time · Minimum-maximum stock levels · Date of last purchase

Inventory Status Physical inventory: physical count of items in inventory Perpetual inventory system: running balance of issued/stored items Inventory variance: differences between a physical count of an item and the balance maintained by the perpetual inventory system © 2003, Educational Institute

Inventory Valuation First in, first out (FIFO): items are valued on the basis of the most recently purchased items. Last in, first out (LIFO): items are valued on the basis of cost of items placed in storage the earliest. Actual cost: actual cost of items stored. Weighted average: “weights” value of items on the basis of the quantity of items in storage at each price. © 2003, Educational Institute

Minimum/Maximum Purchase Order System Minimum inventory levels: safety level—minimum quantity below which inventory items should not fall Maximum inventory levels: highest quantity above which inventory items should not rise Usage rates: number of purchase units used per order period Lead-time quantity: anticipated number of purchase units taken from inventory between the time an order is placed and the time it is delivered Order point: number of purchase units in stock when an order is placed © 2003, Educational Institute

E-Procurement Sell-side model: placing an order directly with a supplier over the Internet—“many to one” environment Buy-side model: using Web-based services to purchase from approved vendors—“one buyer, many sellers” environment E-marketplace model: virtual shopping mall—“many buyers, many sellers” environment Contract compliance: conformity to volume purchasing contracts negotiated by hotel chains, franchise organizations, associations, consortia, or representation firms © 2003, Educational Institute

Enterprise Reporting Enables corporate managers to monitor transactions and affect unit-level operations: Sorts data from units grouped by: · Regions · Price points · Other variables Implements pricing and/or accounting changes for: · Regions · Price points · Other variables © 2003, Educational Institute