RELATED STUDIES AND SYSTEMS

2.1 FOREIGN STUDIES

2.2 LOCAL STUDIES

2.3 SYNTHESIS AND RELEVANCE TO THE STUDY

(MATRIX-COMPARATIVE ANALYSIS)

Accounts Payable and Receivable Page 1

CHAPTER II

2.0 INTRODUCTION
The hotel industry is unique and has accounting issues specific only to the
industry. The hotel industry was one of the first industries to develop definitive
standards to provide specific guidance to accountants and operators.

Analyzing financial information based on benchmarks set by the industry is

essential to the hotel success. Accounting has to work seamlessly with hotel
management and operations to interpret the financial information and react
accordingly. Timely reporting is a key to making quick decisions in this economy

Hotel accounting is not simply about managing revenue and expenses.

Independent hotels and hotel franchises have unique financial needs that demand
competent staff and an accounting system that will allow management to plan for the
future and improve services for both guests and staff alike. There are many things to
consider when assessing the quality of accounting of a hotel property, including staff
training, accounting software and forecasting.

2.1 Foreign Studies

Hampton hotel

Account Receivables, Payables, Direct bills, City ledger and Hilton invoice.
Interviewing, hiring, scheduling, coaching, disciplining of FD and Comp Serv.
employees.
Reviewing and processing PO forms from departments, check books, and A/P
invoices.
Resolving complex issues, keeping record of transactions, being ready for audit any
time.
Review FD's transactions, ensuring right charges have been made to right accts.
Handling paid-outs, receipts, petty cash payments, and bank transactions.
Processing daily bank deposits, balancing accounts and necessary FD error
corrections.
Reviewing, detailing and reporting Budget, P&L, WBR, Income Journal, 90 day
forecast.
Payroll processing, hiring procedures, DOL unemployment responses, Aetna EZ link,
401K.
Monitoring Cash, Check payments, daily system over/shorts, process Honours etc.
on On.
Monitoring Guest Assistance site & SALT Scores and resolve problems.
Being available anytime for guests and employees.

Accounts Payable and Receivable Page 2

Invoices 365

Can automate accounts payable/accounts receivable processes and integrate

with your existing ERP system, making all related documents accessible at any time
and reducing the need for duplicate data entry. Our accounts payable/accounts
receivable solutions can eliminate paper and manual data entry improving
visibility, increasing productivity, improving quality, and increasing your
organizations efficiency.

How Accounts Payable can

benefit from Invoices365: How Accounts Receivable can benefit from
Invoices365:
Reduced storage and paper
costs Quicker invoice processing

Quicker processing time Improves cash flow

Less misplaced or lost invoices
Make payments on time
Take advantage or early
payment discounts
Improve process efficiency such as: orders,
invoicing, and collecting payments
Automatic data validation
Integration with ERP systems

Less errors Automation of payments

Easy, instant, and reliable Receive and process orders in less time with
access to invoices PO receipt automation

Opportune

Managing the daily flow of invoicing and billing is an essential operation within
any business. We at Opportune understand that this vital account activity requires
close scrutiny, with attention to detail and accurate execution.

As our back-office professionals receive and process coded administrative

and operational invoices, we employ an accounts payable system to verify approval
authority and limits based on the specific criteria you set before any checks are
printed.

Our system also gives us the capabilities to:

Maintain voucher logging to track the location of unpaid invoices

Receive and respond to vendor inquiries as long as invoices are paid within invoice
terms

Accounts Payable and Receivable Page 3

Review, monitor, analyze and resolve any over/under billings, suspense issues, etc.

Enter and apply coded cash receipts

Generate aging reports

Interface with Spend works for electronic invoice processing

Opportune leading-edge software technology, broad expertise and right-

sized outsourcing team make everyday account management effortless and efficient.

MIS Account Payable &Receivable

The MIS Accounts Receivable system is a comprehensive module that allows

for the management, logging and tracking of your receivables, invoices, sales taxes,
and cash receipts.

Customer File Information

Some of the information contained in the customer file includes: billing and shipping
information (the system supports multiple shipping addresses per customer),
purchase and credit contact information,
shipping instructions and route designator, sales tax and exempt controls, general
contact information (phone, fax, email), credit limit
and terms, pricing controls, service charge controls, branch and sales
territory controls, salesperson assignment, customer type and SIC
indicators, account status controls (active, frozen, closed, prospect, etc.),
sales commission controls, backorder fill priority controls, links to external
files (Word documents, Google Map, PDF and Image files, etc.) and more!

Free-form customer notes are maintained for marketing, credit, collection, and sales
management purposes.

The Sales Manager option in the MIS Sales Analysis module maintains and displays
customer purchase history, sales trends, profit trends, unit trends, stock sufficiency
levels (ability to stock and ship percentages), rankings, and graphs.

Collections/Cash Management
The Collections/Cash Management section of the Accounts Receivable module
consolidates and organizes the functions necessary to manage your customer
accounts. Some of the functions included in this section are:

Account Review
Credit Manager Review
Design-It-Yourself Credit Report
Statements
Dunning Notifications
Various Aging Reports

Accounts Payable and Receivable Page 4

 Due Date Register
Collection Review & Report

Collection Call Back Report

and more!

Cash Receipts
The Cash Receipts function allows payment of invoices by oldest (on account) or
specific. Deposits and
miscellaneous cash receipts can also be entered. Discounts or short payments can
be handled from
within the cash receipts function and detailed invoice review is available on-line, thus
saving time when
an account adjustment is needed. Once your receipts have been entered, a proof list
option is available,
along with a bank deposit slip.

Sales Tax Management

the MIS system allows for multi-level tax codes. Tax code reporting provides the
necessary information
for tax forms (many taxing authorities accept the reports printed by the system), and
you have the option to update the taxes due to the MIS Accounts Payable module.

Accounts Receivable Reports

The Accounts Receivable, Sales Analysis, and Order Entry modules contain many
reports that allow
you to audit, monitor, track, and analyze the many indicators necessary for superior
customer service,
accounting and management of your customers.

The MIS Accounts Payable system is a comprehensive module that allows for the
logging, tracking and reporting of your payables, while helping to manage cash
requirements and disbursements. The system
integrates with the MIS General Ledger and Purchase Order modules.

Vendor File
Some of the information contained in the vendor file includes: Address and contact
information, standard due date controls, standard discount date controls, standard
terms discount controls, default general ledger controls, vendor classification,
payment cycle controls, purchasing goals, extended information for contract terms
and conditions, and more.
The Vendor Ordering file is used to maintain discount schedules/levels and is used
in conjunction with the Purchase Manager function to assist in optimizing your
ordering process.

Accounts Payable and Receivable Page 5

Transactions
Invoices/Vouchers can be input in a live or batch mode. Vendor look-up windows
provide easy access to the vendor account. The system will automatically calculate
the due date, discount date and discount
amount, based upon the vendor profile. Invoices can be associated with a purchase
order in order to track and monitor unrecorded liabilities, under receipts, over
receipts and cost discrepancies.

The system allows for account adjustments and credits, along with due date and
discount rate changes. You may also void checks from current and previous periods.

Check Writing and Cash Management

Several features are available for controlling which invoices will be paid and when.
Selection/Exclusion of payment can be based upon vendor, due date, invoice
number, discount date, due date and vendor, payment cycle, promise date, dollar
amount, and others.

Various cash requirements reports are available to assist you with cash flow
planning. The system also features immediate/demand check printing, manual
checks, bank reconciliation and multiple bank accounts.

Bank Account Reconciliation

The bank reconciliation function includes deposits, checks from Accounts Payable,
checks from Payroll,
and any journals affecting the cash account from transactions entered directly
through the General Ledger.

Some of the Accounts Payables Reports:

Multiple Unrecorded Liabilities Reports
Multiple Aging Reports
Invoices by Status, Class, Dollar Amount, etc, Reports
Detailed History Report
Transaction Summary
Purchase History
Vendor Inactivity
Check Registers
Multiple Cash Requirements Reports
Multiple Vendor Lists

Accounts Payable and Receivable Page 6

 FI ACCOUNTS RECEIVABLE AND ACCOUNTS PAYABLE | SAP FI PDF
MANUAL

The following topics are an introduction to the Accounts Receivable and

Accounts Payable application components.

The Accounts Payable application component records and manages accounting data
for all vendors. It is also an integral part of the purchasing system: Deliveries
and invoices are managed according to vendors. The system automatically triggers
postings in response to the operative transactions. In the same way, the system
supplies the Cash Management application component with figures from invoices in
order to optimize liquidity planning.

Payables are paid with the payment program. The payment program supports all
standard payment methods (such as checks and transfers) in printed form as well as
in electronic form (data medium exchange on disk and electronic data interchange).
This program also covers country-specific payment methods.

If necessary, dunning notices can be created for outstanding receivables (for

example, to receive payment for a credit memo). The dunning program supports this
function.

Postings made in Accounts Payable are simultaneously recorded in the General

Ledger where different G/L accounts are updated based on the transaction involved
(payables and down payments, for example). The system contains due date
forecasts and other standard reports that you can use to help you monitor open
items.

You can design balance confirmations, account statements, and other forms of
reports to suit your requirements in business correspondence with vendors. There
are balance lists, journals, balance audit trails, and other internal evaluations
available for documenting transactions in Accounts Payable.

The Accounts Receivable application component records and manages accounting

data of all customers. It is also an integral part of sales management.

All postings in Accounts Receivable are also recorded directly in the General Ledger.
Different G/L accounts are updated depending on the transaction involved (for
example, receivables, down payments, and bills of exchange). The system contains
a range of tools that you can use to monitor open items, such as account
analyses, alarm reports, due date lists, and a flexible dunning program. The
correspondence linked to these tools can be individually formulated to suit your
requirements. This is also the case for payment notices, balance confirmations,
account statements, and interest calculations. Incoming payments can be assigned

Accounts Payable and Receivable Page 7

 to due receivables using user-friendly screen functions or by electronic means, such
as EDI.

The payment program can automatically carry out direct debiting and down
payments.

There are a range of tools available for documenting the transactions that occur in
Accounts Receivable, including balance lists, journals, balance audit trails, and other
standard reports. When drawing up financial statements, the items in foreign
currency are revalue, customers who are also vendors are listed, and the balances
on the accounts are sorted by remaining life.

Accounts Receivable is not merely one of the branches of accounting that forms the
basis of adequate and orderly accounting. It also provides the data required for
effective credit management, (as a result of its close integration with the Sales and
Distribution component), as well as important information for the optimization of
liquidity planning, (through its link to Cash Management).

2.2 Local Studies

IQ BackOffices

Accounts Payable Outsourcing

Increased savings and control with digitized invoices
IQ BackOffices procurement-to-payment approach delivers savings of up to 68%
and a per-transaction quality rate of 99.97%. We'll take that stack of paper invoices
off your desk and apply a combination of web-based workflows and outsourced
processing that readies them for approval and electronic payment in less than a day.

With IQ BackOffice, your processes become standardized into SAS70 Type II

and SSAE 16-qualifying business rules. We code these rules into our state-of-the-art
Archimedes software and digitize your invoices for processing by our highly-trained
and carefully monitored staff. We note exceptions for your resolution and review
each invoice across multiple data points to spot duplicate billing.

Our best practices approach gives you better control over your processes.
Instead of going through stacks of invoices and file folders, with a few clicks, you can
drill down into any invoice to see its status, find out who needs to review it, know
how long theyve had it in their inbox, and approve it for payment.

IQ BackOffice enables disbursement via checks, ACH, wire transfers and credit
cards with rebates. Our solutions offer:

Enhanced visibility into the accounts payable cash flow

The flexibility to work with any bank, with no charge for changing banks

Accounts Payable and Receivable Page 8

 Reduced vendor remittance costs through online presentment and self-service
options
Secure Virtual Payment MasterCard, with cash-back revenue options
With IQ BackOffice, your accounts payable processing becomes digital, predictable,
efficient and quality-focused. Your control increases while your costs and risks
decrease, enabling you, and your company, to do more.

Accounts Receivable Outsourcing & Billing

Comprehensive billing, cash application and collections management

Working capital is the lifeblood of a company, but it is still largely tracked via hand-
processed billing, cash application and collections management functions. IQ
BackOffice is ready to move you forward with web-based workflows and outsourced
processing that can cut your costs in half while providing real-time insight into your
accounts receivable and cash flow.

We start with a top-to-bottom review of your processes, reengineering them to

SAS70 Type II and SSAE 16 standards. Then we deploy your updated procedures
into our proprietary Archimedes workflow software. Archimedes ensures that our
processing staff applies your business rules rigorously and lets you drill down into
any bill to review its status. As needed, we can reach out to overdue accounts with
reminder calls and emails, based on your business rules.

By integrating your existing accounts receivable functions, reducing processing

costs and providing detailed reporting at every step, IQ BackOffice will ensure you
have the tools and data you need for real-time decision support.

2.3 Synthesis

The overall transaction and tracking of the invoice and reports.

Hotel accounting is not simply about managing revenue and expenses.
Independent hotels and hotel franchises have unique financial needs that
demand competent staff and an accounting system that will allow management to
plan for the future and improve services for both guests and staff alike. There are
many things to consider when assessing the quality of accounting of a hotel
property, including staff training, accounting software and forecasting.

Accounts Payable and Receivable Page 9

 PROPOSED
FORIEGN RELATED STUDY
SYTEM

FI Accounts
FEATURES MIS
Receivable Accounts
Hampton Account
Invoices 365 Opportune and Payable and
Hotel Payable &
Accounts Receivable
receivable
Payable

keeping
record of
transaction
being ready
for audit
anytime

Receipt

Invoice

Check
payments
Adjustment
entries
PROPOSED
LOCAL RELATED STUDY
SYTEM

FEATURES Accounting
Accounts
IQ ERP System of
SYSPRO E-invoicing Payable and
BackOffice's Business Corporate
Receivable
Business

keeping
record of
transaction

being ready
for audit
anytime

Receipt

Invoice

Check
payments

Adjustment
entries

Accounts Payable and Receivable Page 10

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