Trial Balance Report (Front Office)

Documentation Index

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Easily review and reconcile all main account balances—covering guest, city, deposit, and control accounts—at any point in time.

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Business Value

• Provides a real-time snapshot of all major hotel accounts for reconciliation.
• Helps detect discrepancies between postings, expected balances, and actual closures.
• Ensures compliance and financial control for audits.

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Typical Use Cases

• Night audit teams verifying balances and transactions.
• Finance teams preparing for end-of-month closing.
• Managers investigating discrepancies between forecasted and actual balances.

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Key Report Sections & Formulas

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1. Ledger Accounts Explained

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Guest Ledger

• What is it? Represents the balance of all in-house guest folios/accounts (i.e., current guests and their charges).
• How is it affected? Increased by guest charges (room, F&B, extras), decreased by payments, check-outs, or transfers to City Ledger.

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City Ledger

• What is it? Shows amounts due from companies, travel agents, or direct bill clients (accounts receivable not yet settled).
• How is it affected? Increased by invoices or transfers from Guest Ledger (on check-out to company), decreased by payments received from companies.

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Deposit Ledger

• What is it? Tracks advance deposits from guests or companies for future reservations/stays.
• How is it affected? Increased by prepayments or deposits received, decreased when deposits are applied to folios or refunded.

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Control Accounts (Control Sum)

• What is it? Balancing accounts used to ensure all postings, closings, and ledgers reconcile. Any balance here typically indicates a discrepancy needing investigation.

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2. Report Columns

Typical columns for each row/account:

• Opening Balance: Balance carried forward from the previous day.
• Total Postings: Total of all transactions (charges, credits, transfers) recorded for the day.
• Projected Closing: Expected balance after all postings, before the night audit closes the day.
• Actual Closing Balance: The real balance at the end of the night audit.
• Control Sum: The net difference between actual and projected closing—should be zero in a balanced report.

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3. Summary Row Formulas

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Total Postings

• Formula: Total charges, credits, and transfers posted during the day for each account/ledger.

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Projected Closing

• Formula: Projected Closing = Opening Balance + Total Postings
• Represents the expected account balance before night audit closes the business day.

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Actual Closing Balance

• Formula: The closing balance calculated by the system after the night audit is complete.
• Should match Projected Closing if all transactions are posted and there are no discrepancies.

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Control Sum

• Formula: Control Sum = Actual Closing Balance - Projected Closing
• Purpose:
  • Should be zero in a balanced report.
  • If not zero, signals a posting or reconciliation error needing correction.

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How to Read and Reconcile the Report

1. Compare Projected vs. Actual Closing for each ledger.
2. Investigate Control Sum:
   • Zero means the ledger is balanced.
   • Non-zero indicates missing postings, late entries, or manual errors.
3. Guest Ledger and City Ledger Movement:
   • Guest Ledger decreases when guests check out, and balances are moved to City Ledger.
   • City Ledger increases with such transfers, decreases when payments are made.

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Tips

• Common Causes of Control Sum Variances:
  • Unposted charges.
  • Checking the report on the same calendar date.
• Daily Review:
  • Always review all ledger balances and Control Sums after the night audit.
  • Investigate discrepancies immediately for clean financials.