Reference no: EM132702751

The Recommended System

• After his 2-week study, Mr. Parks concluded that efficient information flow and efficient transaction ­recording procedures were the most important re­quirements of a good front-office system. He recom­mended that the hotel install a terminal at the front desk and a computerized data-processing system to handle the paperwork. This system is described below.

• After a guest fills out the registration card, the clerk inputs the data through a terminal, thereby es­tablishing a new computer record. All records are arranged and stored according to room numbers. No ledger cards are prepared because all business trans­actions between the guest and the hotel are keyed in through computer terminals located at the hotel's res­taurant, gift shop, and laundry. At the end of a shift, the computer calculates the total amount of cash re­ceipts and disbursements and the cash balance so that the clerks can reconcile their on-hand cash to the computer records. At the end of the day, the com­puter calculates the total sales, total accounts receiv­able, total cash receipts, and total cash disbursements. The computer, automatically updates the various hotel guest ac­counts within the accounting information system as each transaction occurs. When a guest checks out, the computer calculates the total balance due from the guest after the clerk has keyed in the room number and depressed the "Total" key on the terminal. When a clerk depresses a 'Paid in-Full,' key, the computer prints out a receipt for the guest and the record is removed from the file. The registration card is then transferred to the history file in the sales department.

• The computer also stores all room inventory information, which is available to the front-desk clerk through the terminal. When a clerk receives informa­tion from the housekeeping department on the rooms cleaned, he or she inputs the information through the front-desk terminal instead of the room inventory sheet.

• Mr Parks estimates that the system will cost $22,000 to install, including training costs. Maintenance will be under $5,000 per year. The system is expected to be adequate for the present volume of business at Paradise Hotel, and for all foreseeable future volumes of business.

Problem 1) Prepare a table of entities and activities for the recommended system.