POLICYANDPROCEDUREMANUAL

SOPNO:ACCTGREV00203/16
DEPARTMENT: ACCOUNTINGSUBSECTION:REVENUE
SUBJECT:
TRADEOUTSISSUEDATE:MARCH4,2016

POLICY:ATradeOutisanagreementthehotelentersintowithasupplierforgoodsorservices.AnyTrade
OutAgreementmustbeapprovedinwritingonaTradeOutAgreementFormbytheVPofOperationspriorto
TradeOuttakingplace.AllTradeOutswillbecopiedtotheDirectorofFinance,CorporateController,and
DirectorofAudit&Compliance.

PROCEDURE:
1. CompleteTradeOutAgreementform,withproperapprovalfromVPofOperations.
2. OpenaHouseAccountinthenameofthevendorandreferencetheaccountasTradeOut.(e.g.ABC
CompanyTradeOut)
3. AnyServiceprovidedtothevendori.e.Rooms,food,beverage,banquetspace,etc.mustbepostedat
fullmarketvalue(nodiscountedroomsormenuprices)androutedtothehouseaccountofthe
vendorandmustincludeallappropriatetax,gratuity,andservicecharge.
4. Attheendofthetradeoutagreementoruponfulfillmentoftheagreeduponservicesbybothparties,
thehouseaccountshouldbereconciled.
a. Notethatiftradeoutoccursoveramultimonthperiod,thefollowingshouldtakeplaceon
thelastbusinessdayofeachmonth,toproperlyrecordtheagreementinthemonth,forthe
month.
5. PostanAdjustmenttoMiscellaneousintheamountofthetradeoutagreementinthehouseaccount
6. RecordtheadjustmentontheDailyRevenueReportasMiscellaneous,codedtotheproperexpense
department(thegoodsorservicesreceived,i.e.Advertising).

AllTradeOutswillhaveanexpirationdateofoneyearorless,nevermore.

Alltradeswillbetakenatthepublishedcorporaterateand/orretailprices.Nodiscountswillapply.
Customerisresponsibleforallexpensesexceedingwhatisincludedinthetradeout.

TheindividualinitiatingtheTradeOutAgreementshallmonitortheservicesprovidedsotheTradevalueis
notexceeded.

Anyarrangementinvolvinganoncashexchange(hotelroomsgiven,vendorservicesreceived)isaTrade
OutAgreement.Thepresence,orabsenceofacorporatecontractdoesnotchangethenatureofthe
arrangement.Further,aTradeOutAgreementformmustbecompletedoneveryTradeOut.

Anycoupons,certificates,vouchers,oranycashequivalentsreceivedbythehotelunderaTradeOut
Agreementshouldbecontrolledandtrackedwithpertinentinformationsuchasvendorname,reference
totheTOA,value,dateissued,dateredeemed,andwhoredeemed.Ifanassociateredeemsavendor
coupon,payrollmustbenotifiedfortaxpurposes.