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CHAPTER 10 Travel and Tour Accounting Documentations and The Billing Statement

The document discusses accounting practices for travel agencies. It explains that accurate accounting is important for determining the financial strength and weaknesses of a travel agency business. The basic accounting system involves recording sales, cash receipts, accounts receivable, cash disbursements, and other financial information in various journals and ledgers like the IATA ledger. This allows the travel agency to prepare key financial statements such as the profit and loss statement and balance sheet to evaluate the business's profitability and financial position.

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Melanie Arceno
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404 views15 pages

CHAPTER 10 Travel and Tour Accounting Documentations and The Billing Statement

The document discusses accounting practices for travel agencies. It explains that accurate accounting is important for determining the financial strength and weaknesses of a travel agency business. The basic accounting system involves recording sales, cash receipts, accounts receivable, cash disbursements, and other financial information in various journals and ledgers like the IATA ledger. This allows the travel agency to prepare key financial statements such as the profit and loss statement and balance sheet to evaluate the business's profitability and financial position.

Uploaded by

Melanie Arceno
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Travel and Tour

Accounting
Documentations
and the Billing
Statement
To manage a travel agency/tour operator
profitably demands accurate recording
Today, accounting is recognized as an and preparation of financial statements.
information system and is designed to These are essential in determining the true
communicate the right information to the and fair status of the business and for
internal as well as external users. making strategic plan and decisions.
Accounting involves recording,
classification and summarizing the
accounting information directed toward
the determination of financial strength
and weakness of a travel agency..
Sales Journal
Cash Receipt
Travel Accounting System Account Receivable
Cash Disbursement
The basic objective of accounting is to ascertain
IATA ledger
the profitability and finance position of a travel
agency operation. To achieve this, every travel
Pay Roll
agency prepares the following journals and General Ledger
statements: Profit and Loss Account
Balance Sheet
Sale Journal
In this journal, all credit sales are recorded. Sometimes, a travel agency provides extends
credit facilities to its clients i.e., leisure and commercial clients. It, in fact, makes a cash
loan to its clients. However, it has been noticed that only large-scale travel agencies can
afford to extend credit to corporate customers, but even then, a thorough credit check is
required before a credit amount is opened.
Cash Receipt Journal
It is used to record all revenues received by the travel agency during the period. In other
words, transactions concerning cash, credit cards, cheques are recorded in this journal. For
example sale of the tour package, the commission received from the hotel, airlines and
other vendors are recorded in it.
Account Receivable
When a travel agency purchases tourism products, services from the supplier on credit, the
amount owed to producers/suppliers/sellers are referred to as an account receivable.
Cash Disbursement
Cash outflows are recorded in cash disbursement journal. Cash outflow means the
operating expenses of the travel agency like rent, salaries, telephone expenses,
administrative expense, financial and legal expenses, selling and distribution expenses etc.
IATA Ledger
The IATA ledger is known as ‘Chief Book of Accounts’ and is the destination point of
entries made in the journals or sub-journals. It is used to balance the accounts of the travel
agency. In accounting, ‘Balance Account’ means continuous and consistent check and
verification of the accuracy of a travel agency’s accounting system.
The main objectives of IATA ledger are:

Identification of travel agencies revenue sources.


Determination of total sales (cash and credit).
Determination of total commission earned by the travel agency.
Find out the total amount owned to IATA.
Evaluate the performance of each travel agency ( which is recognized by IATA).
The procedure of posting IATA Ledger is very simple and easy to understand. Today, almost every travel agency
is using Electronic Data Processing System (EDP) to maintain an up-to-date record of each cash as well as credit
card transactions.
The procedure of posting Cash and Credit Card Transaction in the IATA Ledger is:

Enter the date, items, and invoice number.


Enter the gross amount of cash and credit-card transaction.
Calculate the commission and enter in the agency commission column.
Subtract the commission form the gross sale and enter the result in the Net Amount
column.
If any amount is due then record it in the due column.
Pay Roll Journal
In this journal, a travel agency maintains the record of salaries and other benefits
(financial) given to its employs like the number of employees on the payroll, total salaries,
insurance premiums, compensations, housing facilities, medical facilities and other benefits
to the employees.
Travel & Billing Statements
A travel and billing statement serves as a travel confirmation and billing notice for a party.
Each party's statement consists of two parts.

The first includes each passenger's name, itinerary, and group options. (If on the Travel
Statement the itinerary and options are the same for each passenger in the party, this
information is listed only once.)

The second section itemizes the party's charges and payments.

You have the following options:


Print statements by account ID or party.
Print statements for all parties, for a particular party, or for a particular passenger.
Print statements for new parties (created since a particular date) or for all parties.
Exclude parties that have a zero balance (they have paid in full or you have entered
only passenger information and no transactions).
Use pre-printed statement stock, or you can have GlobalWare print your agency's
address on the statement.
Print any of the comments for the group on the statement heading.
Enter special remarks for the statement and print them at various places on the
statement.
SAMPLE TRAVEL INVOICE:

https://freeinvoicebuilder.com/travel-agency-invoice-template-online/

STATEMENT OF ACCOUNT FOR TRAVEL AGENCY


https://www.scribd.com/document/428729351/SAMPLE-
activity 10
1. Make a travel & billing Statements example (computerized)
Thanks!
MAY THE ODD BE ON YOUR ON FAVOR

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