EXPENSE DICTIONARY
ROOMS DEPARTMENT
ADVERTISING: Classified ads for employment in the rooms department
ALLOWANCES: The costs of walking a guest to another hotel.
CABLE TELEVISION: Monthly programming fees, cable fees, and satellite lease
payments
CLEANING EXPENSE: Cost of cleaning windows, any cleaning done on a contract
basis. Any supplies purchased for the purpose of cleaning the rooms and lobby areas,
trash can liners, window cleaners, dust spray, mops, brushes
CARPET CLEANING: Cost of cleaning carpets.
CHARGE BACKS: Credit card disputes from guests
COMPLIMENTARY BREAKFAST: Cost of food, paper and plastic supplies for free
breakfast
DECORATIONS: Cost of flowers and plants, which are used to decorate the rooms,
elevator, lobbies and public space areas except for restaurants and lounges. Seasonal or
holiday decorations used in public space
ENTERTAINMENT: Department heads meals and entertainment other than for sales
purposes. Social outing, golf tournament fees other than for sales person
FURNISHINGS: lamps, lampshades, blinds, luggage racks, ironing boards and irons,
throw rugs, sofa accent pillows, wall art and pictures
GUEST SUPPLIES: Ashtrays, in-room glasses, candy jars, potpourri bowls, flower
vases, shampoo, soap, toilet paper, sewing kits, mouthwash, q-tips, cotton balls,
conditioner, hand lotion, in-room candy, shower caps, books, magazines, TV guides,
Kleenex, potpourri, shower curtain rings, amenity trays or baskets, hangers, batteries,
remote controls, ice containers, tissue holders, hair dryers, laundry bags, shoe shine bags
or mitts, bathrobes
IN-ROOM COFFEE: Cost of in-room coffee.
NEWSPAPER: Cost of USA Today for guests.
LAUNDRY SUPPLIES: Detergent, degreaser, water softener, bleach or third party
charges for room linen cleaning
LICENSES AND TAXES: Local business or occupational tax or license specifically
related to the rooms
LINEN: Sheets, pillowcases, towels, washcloths, hand towels, bath mats, bedspreads
MISCELLANEOUS: Items, which are not classified under other captions but belong in
the rooms department that are less than $100.00
OFFICE EXPENSE: Any office supplies specifically for the FRONT office and / or
housekeeping
POSTAGE, PRINTING & STATIONARY: In-room pens or pencils, in-room pads, inroom stationery, stationery folders, postcards, envelopes, printing of front desk forms,
folios, registration cards, reservation forms, miscellaneous vouchers, front office postage
RESERVATION EXPENSE: Cost of central reservation fee charged by central office.
The cost of any dedicated reservation phone lines or other equipment dedicated to
reservation activity.
TRAVEL / TRAINING: Cost of training seminars and materials for front office and / or
housekeeping personnel. Travel and travel related to training seminars for attendees.
Travel by rooms department heads for rooms department activities
TRAVEL AGENT COMMISSION: Authorized commissions to independent travel
agents. Also used for commissionable room revenue paid to in-house corporate travel
agents for major clients. Commissions paid to wholesalers for group rooms
UNIFORMS: Cost of purchase, rental and / or cleaning of uniforms for front office
personnel and housekeeping personnel.
EXPENSE DICTIONARY
FOOD & BEVERAGE
ADVERTISING: In house advertising of the food and beverage outlets. Classifieds ads
for employment in the food and beverage departments. Local media advertisements
exclusively for the food and beverage outlets.
BANQUET EXPENSE: Cost associated with banquet setups, such as decorations and
equipment rental for specific utensils used only in banquets and meetings. Includes rental
of audio-visual equipment.
MEETING SERVICES: Cost of items used when servicing the guest using the meting
rooms
CASH (OVER) SHORT: Monthly total of net overages and shortages by cashiers in the
food and beverage operation
CHINA, GLASSWARE & SILVER: The write off of china purchases or rentals for
plates, cups, coffee cups & saucers, salt & pepper shakers, bowls, dishes, serving pieces.
The write off and purchase of glasses used in the restaurant and buanquets and beverage
services. Includes ashtrays and crystal used in restaurants. The write off and purchases of
silverware and silver pieces used in the restaurants and banquets
CLEANING SUPPLIES: Cost of all cleaning supplies used to clean the restaurant,
kitchen and bar. Includes dishwashing supplies
CONTRACT CLEANING: Cost of cleaning windows, carpet, expense of renting carpet
shampooer, cleaning kitchen hoods, or any other cleaning done on a contract basis for the
food and beverage outlets
CREDIT CARD COMMISSIONS: Discount deducted by credit card companies in
payment of submitted charges for food and beverage. Does not include charge backs by
credit companies
DECORATIONS: The cost of flowers and plants used to decorate the food and beverage
outlets. Seasonal and holiday decorations used in food and beverage outlets
DINING ROOM SUPPLIES: Non-food condiments, supplies used in the preparation of
drinks, cost of items used by guests that are complimentary
DUES & SUBSCRIPTIONS: Dues directly related to operating the food and beverage
department. Subscriptions for books and magazines pertaining to the food and beverage
department
ENTERTAINMENT: Cost of background music, live entertainment in the lounge, piano
player, rental of piano, cost of rental of any music tapes or CD’s. Disc Jockey fees
EQUIPMENT RENTALS: The cost of renting any equipment for the restaurant, kitchen
or lounge that is not considered a capital or operating lease
EXPENSE DICTIONARY
FOOD & BEVERAGE contd…
EQUIPMENT RENTALS: The cost of renting any equipment for the restaurant, kitchen
or lounge that is not considered a capital or operating lease
FREIGHT: Common carriers collect charges
INSURANCE: Premiums for general liability, umbrella liability or security or fidelity
bonds. This account does not include group health insurance or life insurance premiums
FUEL – KITCHEN: Sterno or any other fuel costs, such as propane tanks that can be
associated specifically with the kitchen
LAUNDRY: The cost allocated from the house laundry department or the cost of third
party laundry service for restaurant or banquet related linen
LICENSES: The cost of restaurant related business licenses only or pouring licenses
specifically for the restaurant Cost of liquor and beverage licenses, state and local
LINEN: Cost of purchases or rental of tablecloths, cloth napkins, bar towels, skirting
MENUS: The cost of producing and printing menus for restaurant, banquets and room
service. Also include production and printing of wine lists
MISCELLANEOUS: Cost of items, which do not fit under other captions and are under
$100.00 but relating to the food and beverage department
PAPER SUPPLIES: Cost of disposable paper products used in the restaurant or kitchen.
Cost of straws, swizzle sticks and all disposable paper products used in the bar
PRINTING, POSTAGE & STATIONARY: Cost of guest checks, printer tape and an
office type supplies provided to the restaurant and lounge. Postage and overnight charges
directly related to the food and beverage departments
PROMOTIONS: Complimentary champagne for brunch, any giveaways, wine used for
wine tasting, cost of food supplied and consumed by customers on a complimentary basis
in the lounge. Cost of promotional events or parties
ROYALTY FEES: Fee assessment by a franchise affiliation
SERVICE / REPAIRS: Minor repairs and service calls for the restaurant and lounge.
For major repairs see the repairs and maintenance department
TAXES: Local business or occupational tax related to the restaurant and lounge
TELEPHONE: Cost of long distance call attributed to the food and beverage department
EXPENSE DICTIONARY
FOOD & BEVERAGE, contd…
TRAVEL & TRAINING: Cost of training seminars and materials for food and beverage
personnel. Travel and travel related to training seminars for attendees. Travel by food and
beverage department heads for activities solely attributed to food and beverage
departments
UNIFORMS: Cost of al uniforms for food and beverage personnel, either the purchase,
rental or cleaning
UTENSILS: Cost of all tools used in the food preparation process, server trays, and room
service trays.
UTILITIES: Cost of electricity, natural gas, fresh water, and sewer used by the food and
beverage outlets
EXPENSE DICTIONARY
TELEPHONE DEPARTMENT
C / S LOCAL: Cost of local line charges, local message charges, other than those related
to long distant charges
C / S LONG DISTANCE: The direct cost and taxes on long distance phone calls,
cellular calls and calling card calls
EQUIPMENT RENT: The actual rent on the equipment associated with the telephone,
switchboard, and phones. Relocating trunk lines
MAINTENANCE CONTRACTS: The cost of the contract to maintain the phones and
the telephone equipment
OTHER EXPENSES: Miscellaneous expenses associated with the telephone department
HIGH SPEED COST: Cost of high speed internet for rooms, business center and
administration offices.
EXPENSE DICTIONARY
ADMINISTRATION AND GENERAL
AUTOMOBILE EXPENSE: Gas and oil for courtesy car or van, other operating
supplies for courtesy car or van, taxi charges paid by hotel in lieu of courtesy van,
charges by a third party limousine company. Car washes, detailing, tune-ups, tires and
engine work.
CASHIERS’ (OVERAGE) SHORTAGE: Monthly total of net overages and shortages
by cashiers other than food and beverage employees
CREDIT CARD COMMISSIONS: Discount deducted by credit card companies in
payment of submitted vouchers except for food and beverage sales. Does not include
charge backs by credit card companies
DONATIONS: Payments to charitable or non-profit organizations other than trade
associations by which little or no promotional value is derived.
DUES AND SUBSCRIPTIONS: Dues not directly related to operating departments and
of a non-promotional nature such as hotel/motel association, credit associations and civic
associations. Subscriptions for magazines and books used by the hotel.
ENTERTAINMENT: Cost of food and beverage while entertaining clients other than
for sales purposes. Social outings and fees other than for sales purposes.
EQUPMENT RENTAL: Cost of renting equipment for the hotel that is not considered a
capital or operating lease
FRANCHISE FEE: Fee assessments by a franchise affiliation, includes cost of special
franchise program such as Pelican Club
INSURANCE: Premiums for general liability, umbrella liability, automobile insurance
or security or fidelity bonds. Includes employee dishonesty and key man coverage. Does
not include group health insurance, which is charged to the benefits department
INTERNAL COMMUNICATIONS: Cost of service for two-way radios, mobile radio
base station and beepers
LICENSES AND TAXES: Local business or occupational tax or license not specifically
related to the rooms, food or beverage departments
MANAGER’S EXPENSE: Local competitive shopping other than for sales purposes.
Approved expenses benefiting the manager.
MISCELLANEOUS: Any expense related to the administration department and not
covered in another category that is less than $100.00 Expenses made necessary due to
theft or damage of guest’s private property
EXPENSE DICTIONARY
ADMINISTRATIVE AND GENERAL, contd…
OFFICE EXPENSE: All office supplies, used in the administrative offices. Cashier
reports, accounting forms, daily reports, bank checks, bank service charges or currency
exchange rate charges, deposit slips
PRINTING, POSTAGE & STATIONARY: Includes charges for postage meter,
express mail and ground or air courier service. Any printed materials, copy machine
paper, executive office stationary, envelopes, note card, ledger books and binders.
PROFESSIONAL FEES: Outside accounting service such as external audit or CPA
fees. Fees to collection or credit agencies. Fees for outside data processing services such
as payroll processing and software only support contracts. Fees to computer consultants.
Legal fees paid to attorneys for services including retainers and court costs
PROVISION FOR DOUBTFUL ACCTS: Estimate of monthly bad debt expense based
on past experience
SECURITY SERVICE: Fees for outside security guard or protection service
SUPERVISORY FEE: Management company monthly management fee
TELEPHONE: Telephone rental and cost of long distance for A&G office direct
telephone lines. Manager’s cellular phone and calling card charges
TRAINING: Cost of training seminars and training tapes
TRAVEL: Cost of out of town travel for A&G personnel. Includes airfare, car rental,
mileage, taxi, meals, tips, hotels, etc. Reimbursable travel by corporate personnel
EXPENSE DICTIONARY
ADVERTISING AND SALES PROMOTIONS
DIRECTORY ADVERTISING: Costs of advertising in yellow pages. Insertion costs in
directories such as AAA. Advertisements in highway exit guides.
ENTERTAINMENT: Cost of food and beverage provided to customers to attract future
business. Social outings and fees for sales purposes.
FRANCHISE ADVERTISING FEE: Advertising fee assessments charged by a
franchise affiliation.
FRUIT BASKETS & FLOWERS: Cost of these amenities provided to guests
MAGAZINES AND NEWSPAPERS: Promotional advertising in local and regional
newspapers and magazines including production costs
MARKETING FEES: Allocation portion of corporate services provided for national or
local marketing.
MISCELLANEOUS: Expenses directly related to the sales department not covered in
another category in this department that are less than $100.00
OFFICE EXPENSE: Cost of office supplies, sales manuals, sales forms, chamber dues
for sales personnel, association fees and public relation expenses.
OUTDOOR ADVERTISING: All costs related to outdoor billboards including fees to
agencies
POSTAGE, PRINTING & STATIONERY: Cost of printing miscellaneous flyers, tent
cards, promotional flyers, and business cards for sales personnel, cost of mailing lists for
purposes of direct mail campaign. Cost of postage used by the sales department
PROMOTIONAL MATERIALS: Copy and printing of brochures including
photography and artwork. Production and copy costs for producing ads.
RADIO & TELEVISIONS: Costs of airtime
SIGNS: Airport display boards and signs, in-house display boards, trade show booth
signs.
SPECIAL PROMOTIONS: Cost of promotion events or parties relating to the
solicitation of business. Secretary club rewards and prizes. Internet web page hosting
TRADE ACCOUNTS: Costs of good of services provided to third party in exchange for
advertising
TRAVEL: Travel related expenses for sales department personnel. Out of town travel
includes airfare, car rental, taxis, meals, tips and hotels. Local travel includes mileage and
tolls. Travel, lodging and meals associated with trade shows.
EXPENSE DICTIONARY
REPAIRS AND MAINTENANCE
A/C & Heating: Cost of parts, filters, and outside repairs to refrigeration and air
conditioning equipment. Cost of parts and outside repairs to heating equipment such as
boilers and pipes
BUILDING: Cost of material and outside repair to the building including ceilings, walls,
floors, windows and doors. Cost of changing or repairing locks or making keys
EXTERMINATION: Cost of exterminating company or purchase of supplies and
equipment for in-house service
ELECTRICAL EQUIPMENT: Primary use is outside service not specifically related to
another function in this department such as an electrician’s rewriting of circuits, lighting
or outlets. Repair to equipment such as generators, motors, vacuum cleaners, etc.
ELEVATORS: All cost related to repairing or inspecting elevators or dumb waiters
including maintenance contracts
FLOOR COVERING: Repair or limited replacement of tile, hardwood, carpet, etc..
FURNISHINGS: Sewing, alteration or other repair to curtains and drapes. Repairs of
vinyl, fabric, lamination, or furniture surfaces. Limited purchases of lamps, lampshades,
casters, swivels, headboards, chairs, artwork, etc..
GROUND & LANDSCAPE: Cost of landscaping tools and equipment and replacement
of trees, shrubbery, sod and other plantings. Maintenance and repair to parking lots,
playgrounds, picnic area, etc.
ICE MACHINES: All costs related to repairing or inspecting the ice machines including
maintenance contracts
KITCHEN EQUIPMENT: All R & M costs related to kitchen equipment
LAUNDRY EQUIPMENT: All R& M costs related to in-house laundry equipment
MAINTENANCE CONTRACTS: Service agreements or maintenance agreements on
equipment where there is not a separate account, such as elevators
MISCELLANEOUS: Any expense related to the R& M department and not covered in
another category that is less than $100.00
EXPENSES DICTIONARY
PAYOLL TAXES & EMPLOYEE BENEFITS
PAYROLL TAXES – ROOMS: Employers share of social security tax, Medicare tax,
federal unemployment tax, and state unemployment tax for the Rooms Department
payroll.
PAYROLL TAXES – FOOD: Employers share of social security tax, Medicare tax,
federal unemployment tax, and state unemployment tax for the Food and Beverage
Department payroll.
PAYROLL TAXES – A & G: Employers share of social security tax, Medicare tax,
federal unemployment tax, and state unemployment tax for the A&G Department payroll.
PAYROLL TAXES – R & M: Employers share of social security tax, Medicare tax,
federal unemployment tax, and state unemployment tax for the Repair & Maintenance
Department payroll.
GROUP INSURANCE: Premiums for group health and supplemental insurance net of
employees’ contribution
OTHER BENEFITS: Cost of sponsoring employee related sports activities, employee
Christmas party, summer picnic, employee awards programs, dues paid for employee as a
benefit, relocations, recruitment and pension programs
WORKERS COMPENSATION INSURANCE: Premiums for workers compensation
insurance and premium audits
EXPENSE DICTIONARY
ENERGY COSTS
ELECTRICAL BILLS: Cost of all replacement bulbs
ELECTRIC CURRENT: Cost of electric current usage
FIRE PROTECTION: Cost f recharging fire extinguishers. Cost associated with
inspecting the fire protection system
FUEL – GAS: cost of natural gas or fuel oil. Gasoline for automobiles is not charged to
this account
REMOVAL OF WASTE: Cost removal of rubbish and expense of operating compactor
SEWER SERVICE: Cost of city sewer service
WATER: Cost of fresh water
EXPENSE DICTIONARY
CAPITAL EXPENSES
AMORTIZATION: Amortization of capitalized leases, pre-opening expenditures and
organization costs
DEPRECTATION: Depreciation of the hotel building and improvements, furnishings
and equipment
INSURANCE: Premiums on insuring the properties against damage or destruction. Also
boiler and machinery premiums
INTEREST: Interest incurred on the mortgage of the property, notes payable to third
parties, and interest on capitalized lease obligations
LAND LEASE: Payment to third party leasor of land
MANAGEMENT FEES: Monthly management company fee which is based on a
percentage of gross operating profit
PROPERTY TAXES: Taxes assessed against furniture and equipment by the state, city
or county. Also includes taxes assessed against real property and property taxes on
capitalized leases.