POLICYANDPROCEDUREMANUAL

SOPNO:ACCTGAR00204/16
DEPARTMENT: ACCOUNTINGSUBSECTION:ACCOUNTSRECEIVABLE
SUBJECT:
CREDITPROCEDURES/DIRECTBILLISSUEDATE:APRIL1,2016

ANDCREDITCARDAUTHORIZATION

POLICY:Hotelsmustensurethatadequatecredittocovercontractualobligationsissecuredand
documented.

PROCEDURE:

1. AtriumHospitalityacceptsthefollowingmethodsofsettlementofSalesandCateringContracts:
a. AproperlycompletedandapprovedDirectBillapplication(attachedseeprocedurebelow)
b. Prepayment(AdvancedDeposit)
c. CreditCardAuthorization(attachedseeprocedurebelow)

2. TheSales/CateringManagermustdevelopanestimateofprojectedRooms,F&B,andOthercharges
forthegroupandforwardtheestimatetoAccountinginordertoensurethatAccountingsecures
sufficientcredit.Adepositofnolessthan20%shouldberequestedwiththesignedcontract.This
depositwillnotapplytothefollowing:
a. GovernmentAgencieswithapprovedPurchaseOrder
b. DirectBillAccountsinGoodStanding
c. CertainWaivedCompanies,asapprovedbyAtriumHospitalityCorporateSalesandwith
ApprovedSOPException.

3. ForGroupsorCompaniesrequestingDirectBilling,theSales/CateringManagershouldsecurethe
completedCreditApplicationfromtheClient.NOTE:SocialCateringFunctionsarenotallowedto
applyforDirectBilling.IndividualsmaynotapplyforDirectBilling:Iftheircompanyhasestablisheda
negotiatedratewiththeSalesDepartmentforlodging,thecompanymayapplyforbillingprivileges.
CreditApplicationsshouldbereceivednolaterthan30dayspriortoaneventorguestsstaytoallow
sufficienttimeforprocessing.Inthecaseofapopupevent,creditmayberequested,butcannotbe
guaranteed.Acreditcardoradvanceddepositmustbesecured.Creditisneverguaranteedwhenan
applicationissubmitted,andshouldnotberelieduponasaformofpayment.

4. Whenitisnecessarytodenycreditprivileges,fullpaymentmustbereceivedbythehotelforany
Sales/Cateringevent.Ifthepaymentisnotreceivedintimetoclearthebankpriortotheeventor
clientarrival,acertifiedorcashiercheckisrequired.Inthecaseofindividualtravelersforacompany,
theindividualmustsupplyavalidcreditcardfortheirstay.

5. Intheeventthatanadvanceddepositwasnotsufficientforallcharges,thecreditcardonfileshould
beusedtosettlethebalancenolaterthan3daysaftertheconclusionoftheprogram,orontheday
ofcheckout.

DIRECTBILL/CREDITAPPLICATIONS
AllcompanieswithDirectBillprivilegesmusthaveanAtriumHospitalitycreditapplicationand
creditcheckonfile.

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CompletedCreditApplicationsshouldbesenttoJohnWeissatTheCreditExchangeviaemailto:
John@CreditExchange.us.com
4802050596

ThecompletedcreditcheckwillbereturnedtotheDirectorofAccounting.

OnlytheDirectorofAccountingorGeneralManagerareallowedtoapproveDirectBill
Applications.Propertylevelapprovalswillbeallowedupto$50,000inCredit.Anythingover
$50,000needstobeapprovedinwritingbytheVicePresidentofOperations,andtheVice
PresidentofFinance.
Pleasenotethatthepropertyismakingthedecisiononcreditbasedontheinformation
receivedbytheCreditExchange.Youwillbegivencertaininformationtobediscussedso
thatathoughtfuldecisioncanbemade.Notethatcertainnegativeinformationdoesnot
necessarilymeanacreditdenial.Youwillneedtoreviewallinformationonacasebycase
basis.

Itemsofdiscussion:

Q:Howdidotherhotelsreplytothereferencechecks?

Subquestion:Didthisclientpayinatimelymanner?

Q:Doesthiscompanyhaveanyliensorjudgementsfiledagainstthem?
Subquestion:Isthisalarge,wellknowncompanyorasmallercompanynot
heardofbefore?
Ajudgementfiledonalargecountrywideestablishedcompanyis
notnecessarilyindicationofnegativecredit.Rememberthat
judgementsarenotonlyfiledagainstthemregardingtheirpayment
statusofbills,butcouldbeemployerrelated,oranyothersection
oftheirparticularindustry.Similarly,asmalllocalcompanywith
manyliensorjudgementsisprobablynotagoodrisktotake.

Q:DotheyhaveanyUCCFilings?
AUCCFilingmeansthatthiscompanyhadsufficientcredittolease
orpurchaselargecommercialitemsviaareputablebank.Generally
thisisagoodsignofalegitimatecompanyorentitywithgood
credit.

Q:Howoldisthiscompany?

Subquestion:Isthisanewcompanywithnopriorcreditestablished?
Newcompaniesdonotnecessarilyindicatehighriskdependingon
thereferencesthatwereprovided.Didtheyprovidereferences
fromvendorsratherthanhotels?Whattypeofvendorsandwhatis
theirpaymentstatus?Rememberthatourindustryisnota
necessity,butaluxuryinmostcases.Iftheyprovidedreferences
thatareessentialtotheirdailybusiness,(e.g.ElectricCompany,
PayrollCompany)thisdoesnotnecessarilyindicatehowtheywould
payanonessentialcompanyinvoiceforahotelfunctionorhotel
stay.
Thequestiontoaskis,Basedonalloftheinformationwehavebeengiven,dowe
trustthiscompany?

CreditApplicationsmustberenewedatleastonetimeperyear.Anewapplicationmustbefilled
outbythecompanyandindicatedasUpdated.TheapplicationwillbesenttoJohnWeissatthe
CreditExchangeforanupdateoflegalinformation.

CREDITCARDAUTHORIZATIONFORMS
CreditCardAuthorizationformsmustbecompletedandsignedbythecardholder.

CreditCardAuthorizationformsmaybeusedforSales/CateringeventsorforIndividualtravelers.

TheAtriumCreditCardAuthorizationformwillbetheonlyformaccepted,exceptincaseswhere
aspecificformisrequiredbyaparticularBrand.

DuetoPCIDSScompliancerules(PaymentCardIndustryDataSecurityStandard)thefullcredit
cardnumbershouldneverbelistedontheformorwrittendowninitsentirety.Onlythelast4
digitsofthecardnumbermaybepresentatanytime.Inordertoreceivethefullcreditcard
number,aphonecallwillbeplacedtothecardholderwhilethehotelemployeeisloggedinto
theirPMSsystem,readytoreceiveandtypeinthecardnumberandexpirationdate.Thecredit
cardnumbermayalsobetypedintothesysteminadvanceofreceiptoftheAuthorizationForm,
howevertheprocesswillnotbeconsideredvaliduntiltheformisreceived.Thehotelemployee
shouldnotateinthereservationoreventthattheformisreceived,anddetailwhatspecific
chargesareauthorized(e.g.room/taxonly,banquetcharges).

Thecreditcardshouldbeauthorizedatleastthree(3)dayspriortoarrival.Thisavoidsany
surprisesordeclinesatcheckin.

TheCreditCardAuthorizationformshouldberetainedonfile,inalocked,securecabinetby
monthandbyarrivaldate,foroneyear.Thisisintheeventthatbackupisrequired,shouldthe
cardholderdisputethechargesatanypointintimeinthefuture.Generally12monthsis
sufficient.

o Inthecaseofcompanyrecurringpayments,youmaystillonlyretainthelast4digitsof
thecreditcardnumberonfileandmayneedtocallthecontacttoobtainthecreditcard
number.Makenoteofthecreditcardexpirationdate,asthecreditcardshouldbe
updatednolessthanonceper6monthstomaintainvalidity,orifthecardexpires.

Ifanyunsolicitedinformationisreceived,itmustbedestroyedandrenderedunreadable
immediately.Thisincludescopiesofcreditcards,copiesofdriverslicenseoranyotherIDorCVV
number.

Ifatanytimethecardholdersuppliestheentirecreditcardnumberviawriting,thefirst12digits
ofthecardnumbermustbecrossedout,blackedout,andrenderedcompletelyillegibleand
unreadable.

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