Notes to Accounting specifics

USALI reflects financial business processes including GAAP/IFRS and Management Accounting principles.

It means that national accounting standards aren’t reflected in the System. Partially the US social taxes and benefits system is reflected in the Chart of Accounts and in the reporting.

USALI does not include any information about tax accounting including:

  • VAT (Value Added Tax)
  • Sales Tax
  • Corporate Tax
  • Property Tax
  • Excises

Corporate Tax (Income Tax) is one of the most complex taxes. As a standard it is accounted in relation to Financial Accounting with specifying rules regarding permanent differences and temporary differences (DTA, DTL). The differences reflect adjustments of Corporate Tax accounting in relation to Financial Accounting.

Asset accounting (accounting of Fixed Assets and Intangible Assets) is included in scope of the Solution.

Typical financial processes used in hotels are:
  • Revenue recognition: importing from PMS system (City Ledger),
  • Invoicing: importing from PMS system (AR invoices for customers-legal entities),
  • Bank clearing, revenue clearing (matching City Ledger with AR revenue), monthly closing revenue accumulation etc
  • Expense accounting in connection to AP accounting: purchased expenses directly allocated on expenses,
  • Expense accounting via intermediate depreciation processes. Some countries or companies require to write-off Uniform, Utensils, China and other assets of low unit cost proportionally their usage period, or during financial year. The similar rule of expense recognition applies for insurance policies and other objects that needed to account deferred expenses (expenditures of future periods).
  • Fixed Assets (Intangible Assets) accounting
  • Allocations
  • Accounting of Reserves (e.g. coverage of planned allowances, employee vacation reserves)
  • Purchase processes including Accrual accounting
  • Other standard financial processes (cash collection, banking processes etc)