by 
Whenever you check into a hotel, whether it’s for business or pleasure, you’ll likely be given both a folio and an invoice. But do you know the difference between the two? If not, there is no need to worry.
This blog post will clear up any confusion regarding What is the Difference Between Folio and Invoice in Hotel Management? We will also help you understand what each document is used for and everything there is to know about them.
What Is The Difference Between Folio And Invoice In Hotel Management?
The terms “folio” and “invoice” are often used interchangeably however, they are different. A folio is a document that lists all of the charges incurred by a guest during their stay at a hotel. An invoice is a bill that is sent to a guest after check-out.
While both documents list charges, there are some key differences between them. For instance, a folio will typically include charges for incidentals such as room service or laundry, whereas an invoice will not.
Additionally, a folio can be used to track payments made by a guest during their stay, whereas an invoice is only issued after a guest has checked out and all charges have been finalized.
So, while both folios and invoices serve similar purposes, there are some key distinctions between the two. Knowing the difference between the two can be helpful for both hotel staff and guests alike.
What Are The Key Differences Between Folio And Invoice?
While both folios and invoices list charges, there are some key differences between them. Let’s have a look at them:
| Folio | Invoice |
| A folio is a document that lists all of the charges incurred by a guest during their stay at a hotel. | An invoice is a bill that is sent to a guest after they have checked out of the hotel. |
| Folios typically include charges for incidentals such as room service or laundry, whereas invoices will not. | Invoices list all of the charges that were incurred during a guest’s stay, including room charges, taxes, and any other fees. |
| Folios can be used to track payments made by a guest during their stay, whereas invoices are only issued after a guest has checked out and all charges have been finalized. | Unlike folios, invoices cannot be edited or updated once they have been generated. |
| Folios are generally used for internal tracking purposes, while invoices are sent to guests after they checkout. | Invoices can be generated by the hotel’s property management system (PMS) or by a billing system. |
| Folios can be edited and updated as needed, while invoices are final documents. | Invoice numbers are typically generated in sequence and are unique to each invoice. |
| Folios are typically generated by the hotel’s property management system (PMS). | Invoices can be generated by the PMS or a billing system. |
What Are Billable And Non-Billable Services In A Hotel?
Credit: Photo by Ashwini Chaudhary(Monty) on Unsplash
The terms “billable” and “non-billable” refer to services that are charged to a guest’s folio or invoice. Billable services are those that the guest will be charged for, such as room service or laundry. Non-billable services are those that the guest will not be charged for.
These services include the use of the fitness centre or business centre, etc.
Which services are billable and which are non-billable can vary from hotel to hotel. However, some common billable services include room service, laundry, mini-bar, and telephone charges. Common non-billable services include the use of the fitness centre, business centre, and pool.
It’s important to note that even though a service may be non-billable, the hotel may still charge a fee for it. For example, many hotels will charge a daily fee for use of the fitness centre, even though the guest will not be charged for each individual workout.
What Is The Purpose For Maintaining Folio And Issuing Invoice?
Folios are used to track charges incurred by guests during their stay, as well as any payments made. This information is used for internal tracking and accounting purposes. Invoices, on the other hand, are issued to guests after they have checked out of the hotel.
Folios and invoices are used for different purposes in hotel management.
Invoices list all of the charges that were incurred during the stay, as well as any outstanding balances. This information is used for billing and accounting purposes.
Why Is It Important To Have A Guest Folio In Hotel Management?
Here are some of the most important reasons why guest folios are important in hotel management:
- First, they provide a record of all charges incurred by a guest during their stay.
- Folios can be used to track payments made by a guest.
- Folios can be used to generate invoices.
Guest folios are important for a number of reasons. Information in the guest folio can be used for internal tracking and accounting purposes.
Since guest folios allow tracking of payments made by guests they also allow the hotel to see which guests have paid in full, and which guests still owe money.
Since folios can be used to generate invoices, these invoices can then be sent to guests after they checkout, providing them with a record of all charges incurred during their stay.
What Is The Purpose Of An Invoice In Hotel Management?
Invoices are used for billing and accounting purposes. They provide guests with a record of all charges incurred during their stay, as well as any outstanding balances. This information is used to bill guests after they check out of the hotel.
Invoices can be generated from guest folios. Folios are used to track charges and payments made by guests during their stay. This information is then used to generate an invoice, which is sent to the guest after they checkout.
What Are The Different Types Of Folio Used In Hotel Management?
There are majorly 4 types of Folio, let’s have a look at them:
1. Guest Folio
The guest Folio is created when a guest arrives at the hotel. It consists of all the information about the guest like their name, contact details, room number, etc.
2. Master Folio
The master Folio is created by combining all the guest folios of a group or an organization who are staying at the hotel for a certain period of time.
3. Non-guest or Semi-Folio
A non-guest or semi-Folio is created for an individual who is not staying at the hotel but is using its facilities like attending an event or a conference.
4. Employee Folio
An employee Folio is created for the staff members of the hotel. It includes information like their employee ID, shifts, etc.
So these are the different types of Folios used in the hotel industry. Guest and master folios are the most commonly used ones. Non-guest or semi-folios are used for individuals who are not staying at the hotel but using its facilities. Employee folios are used for hotel staff members.
What Is A Non-Guest Or Semi-Folio?
A non-guest or semi-folio is created for an individual who is not staying at the hotel but is using its facilities like attending an event or a conference. This folio includes information about the individual’s name, contact details, and the purpose of their visit.
An employee folio is created for the staff members of the hotel. It includes information like their employee ID, shifts, etc. Employee folios help hotel staff members keep track of their work schedules and responsibilities.
What Is A Permanent Folio?
A permanent folio is a type of guest folio that is used to track charges for guests who have an extended stay at a hotel. This type of folio can be used for guests who are staying for 30 days or more.
Permanent folios are typically created in the hotel’s property management system (PMS). They can be accessed by both hotel staff and the guest.
Permanent folios can be used to track a variety of charges, including room charges, restaurant charges, and incidentals. Folios can also be used to track any outstanding balances owed by the guest.
Once a permanent folio has been created, it can be easily accessed by both hotel staff and the guest.
How To Request The Hotel For Folio Or Invoice?
To request a folio or invoice, you will need to provide the hotel with your name, address, and contact information. You should also specify whether you need a folio or an invoice. The hotel will then generate the requested document and send it to you.
If you need a copy of your folio or invoice, you can request one from the hotel. Folios and invoices can be generated from the hotel’s property management system (PMS).
What Are The Elements Of A Hotel Invoice?
Credit: Photo by Chanhee Lee on Unsplash
A hotel invoice typically includes the following information:
- Guest name and contact information
- Invoice number printed on the top of the invoice
- Date of stay and duration of stay
- Room charges incurred
- Taxes and fees incurred
- Total charges
- Outstanding balance (if applicable)
My Folio Shows A Negative Balance. What Does It Mean?
A negative balance on a folio means that the guest has paid more than the total amount due. This can happen if the guest pays their bill in cash, or if they use a credit card to pay for their stay.
If you have a negative balance on your folio, you should contact the hotel to arrange for a refund. The hotel may require you to provide proof of payment, such as a copy of your bank statement or credit card statement.
What Is Meant By Charged Privileges?
Charged privileges are services that guests can use during their stay, but will be charged for after they checkout. These services can include things like long-distance phone calls, Internet usage, and minibar charges. These charges can also include things like service fees for using pools and fitness centers.
How Will You Prepare A Guest Folio?
Preparing a guest folio is a simple process. First, you will need to gather all of the charges incurred by the guest during their stay. This information can be found in the hotel’s property management system (PMS).
Next, you will need to generate an invoice from the guest folio. This invoice will include all of the charges incurred by the guest, as well as any outstanding balances. The invoice can then be sent to the guest after they checkout.
How Do You Write A Hotel Invoice?
Writing a hotel invoice is a simple process. First, you will need to gather all of the charges incurred by the guest during their stay. This information can be found in the hotel’s property management system (PMS). Next, you will need to generate an invoice from the guest folio.
This invoice will include all of the charges incurred by the guest, as well as any outstanding balances. The invoice can then be sent to the guest after they checkout.
When writing a hotel invoice, you will need to include the following information:
1) The guest’s name, address, and contact information
2) The dates of their stay at the hotel
3) A list of all charges incurred during their stay, including room charges, restaurant charges, and any other charges that may have been incurred.
4) The total amount due
5) The date that the invoice was generated
6) The hotel’s contact information, including address and phone number
7) Any special instructions or notes regarding the invoice
Bottom Line!
So there you have it, the lowdown on folios and invoices. In short, a folio is a document that summarizes all charges incurred by a guest during their stay. An invoice, on the other hand, itemizes each charge and can be used for billing or tax purposes.
Understanding the difference between these two documents is essential for both customers and hotel managers. Have you ever had to create or manage either of these documents? If so, we want to hear from you! Share your experiences in the comments below.
FAQs
What Is The Difference Between A Master Folio And A Guest Folio?
A master folio is created by combining all the guest folios of a group or an organization who are staying at the hotel for a certain period of time. A guest folio is created when an individual arrives at the hotel.
It consists of all the information about the guest like their name, contact details, room number, etc.
What Is A Folio Number On An Invoice?
A folio number on an invoice is a reference number that helps you keep track of your invoices. There are two types of folio numbers: sequential and non-sequential. Sequential folio numbers are assigned in order, typically from left to right. Non-sequential folio numbers can be assigned in any order.
When To Use Folio 2 or 10 For A Guest?
Folio 2 is used for a guest who is staying at the hotel and using its facilities. Folio 10 is used for a guest who is just passing through the hotel and not using any of its facilities. They may just be picking up a package or something similar.
Where Do I Find Room Charges On My Guest Folio?
Room charges can be found under the “Room” tab on your guest folio. If you have multiple rooms, you will see a separate charge for each room. Clicking on the room number will give you more detailed information about that particular room’s charges.
How To Email A Guest Folio To A Guest?
You can email a guest folio by going to the “Actions” drop-down menu on the guest folio and selecting “Email Folio.” A new window will open where you can enter the guest’s email address and a message. The folio will be sent as a PDF attachment to the email.
What Is Guest Billing?
A guest billing is an itemized statement of charges incurred by a hotel guest during their stay. This statement can include things like room charges, restaurant charges, and laundry charges. Guest billings are typically generated at the end of a guest’s stay.
They can be sent to the guest via email, regular mail, or fax.
