OH 9-1
Protecting Revenue10OH 9-1
OH 9-2
Learning ObjectivesAfter completing this chapter, you should be able to:
• Identify and explain the three parts of a revenue collection system.
• List the external and internal threats to revenue security.• Explain the basic control standards to safeguard cash and credit card information.
• Describe the four steps in the revenue security system.
• Explain several ways to discourage theft by employees.
OH 9-3
Learning Objectives continued:After completing this chapter, you should be able to:
• List two important areas affected by accounts payable.
• Describe the steps in verifying the receipt of goods and services.
OH 9-4
Three Parts of a Revenue Collection System
Charging the Guest
Collecting Revenue
Protecting Cash Assets
OH 9-5
External Threats to Revenue Security
Cash Open tab
Counterfeit currency
Credit Cards
Personal Checks
OH 9-6
Internal Threats to Revenue Security
Poor hiring practices
Ineffective internal controls
Lack of checks and balances
OH 9-7
Enhancing Revenue Security
Safeguarding On-Premise Cash Monitor bank verification and check out sheets
Limit approval of voids and overrings
Assure generation of receipts
No person with access to accounting records handles cash
Change safe combinations when those with access leave employment
Conduct safe audits on an irregular basis
OH 9-8
Enhancing Revenue Security
Safeguarding On-Premise Cash Cash is kept in safe
Cash is deposited daily
Safeguarding Customer Payment Card Information PCI data security standard
OH 9-9
The Four Step Revenue Security System
OH 9-10
Verifying Product Sales
Kitchen Issues
Guest Checks
OH 9-11
Verifying Guest Charges
Server Reports
Shift Reports
OH 9-12
Verifying Payment
Cash Control
Credit and Debit Card Payments
Coupons and Other Payment Forms Employee meal discounts Guest relations discounts Marketing and promotional discounts Police, firefighter, senior, military discounts Comps
OH 9-13
Verifying Deposits
Cash
Payment with credit cards and debit cards
OH 9-14
Cash Audits
Cashier and Server Banks
Petty Cash
OH 9-15
Pay invoices on a predetermined schedule established by business
Verify that all invoices paid are legitimate
Minimize the amount of time and expense in processing paperwork
Managing Accounts Payable
OH 9-16
Verifying receipt of goods and services
Verify amounts due
Invoice payment
OH 9-17
Chapter 10 Protecting RevenueChapter 10 Protecting RevenueChapter 10 Protecting RevenueChapter 10 Protecting Revenue
Key Terms:Accounts payable The amount of money that an operation owes suppliers from which it has purchased goods, products, or services.
Auditing A financial examination of an organization’s accounts.
Card verification value (CVV) The three-digit code on the back of most credit cards.
Collusion The working together of two or more employees for dishonest purposes.
Counterfeit currency Money that is produced to resemble official legal currency closely enough that it may be confused for genuine currency.Extension The price of an item multiplied by the number of items being purchased.
Fraud An intentional deception to cause a person to give up property or some lawful right.
OH 9-18
Chapter 10 Protecting RevenueChapter 10 Protecting RevenueChapter 10 Protecting RevenueChapter 10 Protecting Revenue
Key Terms continued:Guest relations discount A discount on a meal offered by a
manager because the guest was not satisfied with the quality of the food or service.
Merchant account A designated account where funds from guest credit card payments can be sent.
Merchant services provider A company that facilitates the transaction between an operation and the card issuer, also known as clearing.Open tab A temporary guest charge account that allows guests to purchase and consume products before paying for them.
Overcharging The act of charging more than the amount that should have been charged and collected.
Payment Card Industry (PCI) A data security standard. A series of technology requirements for retailers and companies that process credit cards, which are designed to ensure the protection of cardholder data.
OH 9-19
Chapter 10 Protecting RevenueChapter 10 Protecting RevenueChapter 10 Protecting RevenueChapter 10 Protecting Revenue
Key Terms continued:
Service charge A labor-related fee, added by the manager, to be paid by guests.
Petty cash A small fund established to handle minor cash disbursements.
Undercharging The act of charging less than the amount that should have been charged and collected.