Cash is an acceptable means of exchange for debt repayment, as a deposit to a bank with

a nominal amount, as well as deposits in a bank or other place which may be collected at any
time. In the balance sheet, cash is part of the most current assets, so in the management requires
careful control. A petty cash settlement is one of the controls that can be done in cash
management. A petty cash deposit is a cash reserved for paying relatively small and
uneconomical expenses when paid with a check. There are two petty cash management methods,
namely:

1. The imprest system, where the amount in the petty cash account is always fixed.
2. The fluctuation method, in which the cash account balance is not fixed, but fluctuates
according to the amount of refilling and expenses from petty cash.

In the hospitality business there are several cash holders (cashiers), such as cashier for each
outlet (cashier for Front Office, cashier for restaurant, cashier for Bar, and so on) so as to
facilitate the operational activities formed petty cash. Petty cash that is usually in the outlet,
usually used to give back the change to guests who shop, sometimes also to provide temporary
loans to guests who require cash in small amounts, for example to pay a taxi. The cashier in the
back office, usually called a general cashier, is also given a petty cash in a certain amount that
can be used for urgent payments, in which the amount allowed to be paid in cash is determined
by management policy. Any expenditure made by the general cashier must be approved in
advance, at least by the head department.

At the end of each period, the existing cash account is matched with the cash balance
recorded (cash opname). Similarly for the balance of money in the bank, made reconciliation.

A. Compare, Design, and Conclude The Charts of Payment Procedures of Hotel Payments

Part involved in debt repayment:

a. Account payable
b. Accounting department head
c. General manager
d. General cashier
Documents used:
a. Voucher payable, is a list of payable that matures to be paid.
b. Invoice, is a list of purchase of goods from suppliers.
c. Memorandum invoice, is a list of receipt of goods that can be used as the basis of billing.
d. Bank / cash disbursement voucher, is a proof of money spent by general cashier.

Cash disbursement procedure for debt repayment:

1. Account payable prepares invoices that have matured, and makes vouchers payable, then
requests approval to make payments on accounting department head and general
manager. And after obtaining approval, submit the payable voucher along with
supporting evidence to the general cashier to prepare the payment.
2. General cashier prepares payment and asks for payment approval, then informs the
payable account that payment is ready. Then prepare the bank disbursement voucher. If
the amount of payment is relatively small will be paid in cash, then that is prepared is a
cash disbursement voucher.
3. Account payable will contact the supplier to take payment on general cashier.

Debt repayment journal

Accounts Payable xxx
Cash / bank xxx
 Flow Chart - Cash Outflow For Debt Payments

Account Payable Acct Dep Head General Manager General Cashier

MI MI
Approval Approval

+ +
Invoice Invoice

VP VP

Approval Approval
Cheque

Approval BDV

GCE
supplier
S

Information :
MI = Memorandum Invoice
VP = Voucher Payable
BDV = Bank Disbursement Voucher
A = Archive
GCES = General Cashier Expenditures Summary
C. COMPARING, DESIGNING, AND CONCLUDING THE CHART OF THE SALARY
PAYMENTS PROCEDURES IN THE HOTEL

Some department get involved in this payment procedure:

a. Human Resource Department
b. The Head of Accounting department
c. General Manager
d. General Cashier

The Documents that related and matters to this payment are:

a. Payroll, is a list that describes the salaries of all employees, drawn up based on the
department and job position of each employee in the organizational structure.
b. Payroll slip/ Pay Slip, is an evidence of the amount of salary received, allowances,
and net salary to be received by each employee.
c. Bank disbursement voucher, is proof of expenditure of money made by general
cashier.

Procedures Actions for Salary Payment

1. Human Resource Department make a recapitulation of the level of employee’s time
keeping in some periods, then calculate salaries, allowances, then payroll and payroll
slips for salary payment. Once the payroll list is ready, an approval is requested to the
head of accounting department and the general manager, after that approval, the
documents submitted to the general cashier for salary payments.
2. General Cashier prepare the payment and make bank disbursement voucher, and ask
for approval, after that, the general cashier submit the bank disbursement voucher to
the human resource department to distribute it to the employees.
3. If the salary payment settled by bank transfer to each of the employee, the general
cashier will send the order to the bank to do bank transfer enclosed with employee
payroll. After that employee matching the amount that they receive in their bank
account based on payroll slip from human resource department.
4. The payroll slip must be in two copies, one for human resource department’s
archives and the other one for the employees.
 Flow Chart - Cash Expenditures for Salary Payments

HRD Acct Dep Head General Manager General Cashier

Examination
Payroll Payroll
& Approval
Authorization

Check Approval Approval Check

+ +

BDV Approval BDV

Signature A

Payroll Slip GCES

Distributed to the employees

Additional information :
BDV = Bank Disbursement Voucher
GCES = General Cashier Expenditures Summary
A = Archives
 Journal for Salary Payment

Departmental Expense xxx

Salary Payable xxx

( to record deffered salary )

Salary payable xxx

Cash/bank xxx

( to record salary payment)