Chapter 9 - Accounting Application
actual cost
A method of inventory valuation. Values inventory only in relation to actual costs of items stored. The value of stored product is, then, the value represented by the sum of individual unit costs
first in, first out (FIFO)
A method of valuing inventory; the products in storage areas are valued at the level of the most recently purchased items to be placed in inventory
city ledger
A subsidiary ledger listing accounts receivable balances of guests who have checked out, and other receivables as well
inventory status
An account of how much of each item is in storage. Inventory status may be determined by a physical inventory or a perpetual inventory.
physical inventory system
An inventory system in which property employees periodically observe and count items in storage
perpetual inventory system
An inventory system that keeps records unto-date by tracking all additions to and subtractions from stock
last in, first out (LIFO)
An inventory valuation method that assumes the products that are most recently purchase are used first. the inventory value is assumed to be represented by the cost of items paced in storage storage the earliest
weighted average
An inventory valuation method that considers the quantify of products purchased at different unit costs. This method "eights" the prices to be averaged based on the quantity of products in storage at each price
ration analysis
Analysis of financial statements and operating results through the use of ratios
ratio
Gives mathematical expression to a significant relationship between two figures. it is calculated by dividing one figure by the other
minimum/maximum inventory levels
Help managers determined when products need to be purchased and how much of each product to order. for each purchase item, management sets a minimum quantify below which inventory levels should not fall and a maximum quantify above which inventory levels should not rise.
common-size balance sheets
Present two sets of figures for each balance sheet line item. One set of figures is from the current balance sheet; the other set is from the balance sheet of a previous period. All amounts are reduced to percentages of their account classification
vendor status report
Presents summary accounts payable information
override options
Provide management with complete control over cash disbursement before engaging the automatic check writing feature of the accounts payable module
monthly check register
Provides a hard copy audit trail of payments made to vendors. This report also identifies checks that have not yet been accounted for.
balance sheet
Provides important information on the financial position of a hospitality business by showing it's assets, liabilities, and equity on a particular date
e-produrement
Purchasing goods and services over the Internet
automated time-clock system
Record time in and time out from employees
e-marketplace e-procurement model
Represents a virtual shopping mall where many buyers and many sellers transact business. Such communicates connect customers directly with suppliers to serve a broad array of business segments
fiscal year
Twelve consecutive months that define a business year
buy-side e-procurement model
A "one buyer, many sellers" approach. Buys purchase web-based services or use self-support systems to buy from approved vendors electronically
check register
After the check writing routine, the accounts payable module prints a check register by check number. the check register also may be sorted by vendor or by invoice due date
income statement
Also called the profit and loss statement, provides important financial information about the results of operations for a given period of time
reconciliation audit report
Balances the total of checks removed from the outstanding checks list with the total of cleared
check reconciliation
Balancing the total of checks removed form the outstanding checks list with the total of cleared checks appearing on the bank statements
accounts aging file
Contains accounts receivable data that can be formatted into variety of aging reports that segment accounts in the file according to the date of charge originated
inventory valuation file
Contains data for determining the cost of goods sold and the replacement cost of items listed in the inventory master file
city ledger file
Contains data from the front office guest accounting module, such as balances from guest folios, non-guest accounts, bill to accounts, credit card billing, and others.
accounts payable aging report
Contains several columns listing invoices by vendor number, vendor name, invoice number, and invoice date
bid specification file
Contains the specific characteristics of purchased items. Purveyors are asked to quote prices for products that meet or exceed stated specifications
outstanding checks list
Details all checks that have been issued but remain outstanding; can be used to reconcile checks issued against canceled checks appearing on bank statements.
inventory variance
Differences between a physical count of an item and the balance maintained by the perpetual inventory system
inventory status file
In a perpetual inventory system, keeps a running balance of the quantity of issues/stored items
sell-side e-procurement model
Involves placing an order directly with a supplier over the Internet. IN this many-to-one environment (many buyers, one seller), the buyer generally accesses the supplier's own website to do research to make purchases
accounts payable
Liabilities incurred for merchandise, equipment, or other goods and services that have been purchased on account
cash requirements report
Lists all invoices selected for payment and the corresponding cash requirement totals; prepared by vendor number, vendor name, due date, item, or group code and typically including vendor number, vendor name, invoice number, due date, balance due, and amount to be paid
daily receiving report
Lists details fo all items received on a give day
chart of accounts
Lists general edger accounts by type of account including account number and account title
chart of accounts file
Lists the name of accounts in a sequence that parallels the order of their appearance on the financial statements and general ledger
invoice register file
Maintains a complete list of all invoices currently outstanding and payable
trial balance file
Maintains a list of accounts with debit and credit balances
inventory master file
Maintains basic inventory data, such as item name, item description *brief), inventory code number, storeroom location code, item purchase unit, purchase unit price, tm issue unit, product group code, vendor identification number, order lead time, minimum-maximum stock levels, and data of last purchase
payroll register file
Maintains the number of hours each employee works during a pay period and other data that may require special tax calculation, such as sick leave pay, bonus pay, tips, and expense reimbursements
check register file
Monitors the calculation and printing of bank checks for payments of selected invoices
customer master file
Sets up billing information. Customer data maintained in this file includes: account code, name of guest or account, address, telephone number, contact person, type of account, credit limit, last payment date, last payment amount, and credit history
labor cost report
Shows labor costs by department or job classifications
deductions
Subtractions from gross pay that are usually voluntary and depart on the types of benefits available from the employer
trial balance
Tests the equality of debit and credit account balances
lead-time quantity
The anticipated number of purchase units withdrawn from inventory between the time an order is placed and the time it is delivered
payment discount date
The last day on which is it possible for a login operation to take advantage of a cash payment discount that may be offered by a specific vendor
general ledger
The principal accounting ledger containing all of the balance sheet and statement of income accounts
inventory valuation
The value of items in inventory
vendor activity report
lists gross amount invoiced, discounts taken, number of invoices, and other vendor data
vendor master file
maintains records of all current vendors. Data contained in this file includes: vendor number, vendor name, contact name, address, telephone number, vendor payment priority, discount terms, discount account number, invoice description, payment data, and year-to-date purchases.
accounts receivable
obligations owed an organization from sales made on credit
aging of accounts receivable schedule
segments each account in the accounts gaining file according to the date the charge originated