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