CONTROL AND EVALUATION
1. Balance Sheet accounts relating to barter transactions must be reconciled monthly to ensure both parties have strictly following the terms and conditions agreed. The Director of Finance/Financial Controller is responsible to ensure that a proper reconciliation is completed in accordance with Hotel Accounting SOP No.12 entitled “Balance Sheet and Account Reconciliation”.
2. All barter transactions must be considered during the annual budgeting process. Details of the services received (advertisement, air fares and others) against the value of rooms and food and beverage provided must be indicated in the Annual Marketing Plan and Budget Template.
Comment : Similar contract rate or minimum BAR rate for new contract.
4. The agreement must follow the standard contract format as approved by Dusit’s Legal Department. If the supplier is insistent on using their format, an exception approval must be obtained from Dusit’s Legal Department by providing reasons to this effect. Notwithstanding this, the agreement using the supplier’s format must still be reviewed by Dusit’s Legal Department. One agreement with one supplier covering multiple barter activities cannot be split into multiple contracts.
Comment: Ask each hotel to submit the barter contract and check with Legal for the standard contract.
5. At the end of the barter term, any unutilized portion of the barter will be lost and the Director of Finance/Financial Controller must ensure that appropriate entries are made to clear the Balance Sheet accounts. Similarly, when the hotel seeks to renew an existing barter contract, any outstanding amount under the old contract must first be cleared before the renewal contract can be signed – please refer to the sample accounting entries below.