Hotel Bank Reconciliation
Automate hotel bank reconciliation across every property. Terrace matches merchant deposits, ACH receipts, OTA payouts, and wires back to PMS folios and the GL — so cash is tied out daily, not at month-end.
- less time reconciling bank statements
- 85%less time reconciling bank statements
- faster month-end close
- 5xfaster month-end close
- of deposits traced to source
- 100%of deposits traced to source
One platform for every hotel bank reconciliation.
Terrace ingests bank statements, merchant batches, OTA payouts, and PMS payment records, then matches every deposit and withdrawal back to its source. Your team reviews only the exceptions instead of rebuilding the entire bank rec each month.
- Direct bank feeds and BAI2 ingestion
- Merchant batch and settlement matching across processors
- Portfolio rollups across every property bank account
What is hotel bank reconciliation?
Hotel bank reconciliation is the process of matching every deposit and withdrawal on a hotel's bank statement to the merchant batches, OTA payouts, ACH receipts, wires, and folio payments that produced them, then tying the cash account on the general ledger to the bank's ending balance. Unlike retail bank rec — where one sale equals one deposit — hotel cash flows through multiple processors, channels, and operating days, so matching requires unwinding fees, timing differences, and chargebacks.
A complete hotel bank reconciliation confirms that every guest payment, group deposit, OTA remittance, and ancillary receipt has reached the bank, that nothing extra has appeared, and that all timing differences are explained. Hospitality bank reconciliation software like Terrace AI automates this matching across every property in a portfolio.
- Every bank deposit traced to a source batch
- Net deposit reconciles to gross less fees
- ACH and wire receipts identified by originator
- OTA payouts matched to included reservations
- Returns and chargebacks applied to right period
- Cash GL balance matches bank ending balance
Why hotel bank reconciliation is painful for accounting teams
Merchant deposits are net, not gross
Banks deposit net of interchange, processor fees, and chargebacks while the PMS records gross charges. Matching requires unwinding every reduction.
Settlement timing creates lag
A folio posted on Monday may settle on Tuesday's deposit, and weekend batches land on the next business day. Date-based matching alone fails.
OTA payments hit the bank weeks later
Booking.com, Expedia, and other channel payouts arrive long after the stay, on aggregated remittance lines with no per-reservation detail.
Multiple merchant accounts per property
Many hotels run separate merchant accounts for restaurants, spa, and group billing, each producing its own batches that need to be matched.
Returned items and NSFs reopen prior periods
Returned ACH items and NSF checks reverse posted revenue from earlier months, forcing the team to revisit closed periods.
Multi-property cash management is manual
Treasury teams reconciling 20+ hotel bank accounts run an identical workflow on each one, with no shared tooling or audit trail.
What data is matched in hotel bank reconciliation?
- Posting date
- Description
- Amount
- Reference
- Batch ID
- Gross
- Fees
- Net deposit
- Folio total
- Payment method
- Settlement date
- Remittance ID
- Stays included
- Net amount
- Posted date
- Account
- Reference
- Amount
- Originator
- Trace number
- Memo
Common hotel bank reconciliation exceptions
A deposit posted to the bank account cannot be tied to a merchant batch, ACH receipt, or expected wire.
The processor closed a batch but it has not yet settled to the bank within the expected window.
Interchange, chargeback, or reserve adjustments cause the net deposit amount to differ from the expected batch net.
A returned ACH or NSF check reverses a prior period's deposit and must be re-applied to the original folio.
A wire transfer arrives with limited memo data and cannot be tied to a group, contract, or AR invoice.
A treasury sweep or inter-company transfer was posted as a cash receipt and inflates the bank reconciliation total.
How hotels manually reconcile bank statements
- 1
Pull the bank statement for the period, either as a PDF, CSV, or BAI2 file from the bank portal.
- 2
Export merchant batch and settlement data from each processor for the same period.
- 3
Export PMS payment posting reports broken out by tender type and settlement date.
- 4
Build a spreadsheet matching bank deposits to merchant batches by amount and date window.
- 5
Reduce gross batch totals by interchange, chargeback, and reserve to confirm the expected net.
- 6
Investigate any deposits without a matching batch, including wires and ACH receipts.
- 7
Post adjustment journal entries for bank fees, chargebacks, and timing differences.
- 8
Close the bank reconciliation and file the audit trail for the period.
Automated hotel bank reconciliation with Terrace AI
Terrace connects to your bank, processors, PMS, and accounting platform and matches every deposit automatically, replacing manual spreadsheet rec.
Bank ingestion
Direct bank statement ingestion
Terrace pulls daily bank statements via direct bank feeds and BAI2 files, normalizing every line for matching.
Batch matching
Merchant batch-to-deposit matching
Terrace matches every bank deposit back to the merchant batch that created it, even when fees and chargebacks shift the net amount.
Folio trace
Trace deposits back to folios
Drill from a bank line through to the merchant batch, settlement record, and individual guest folios that funded it.
OTA payouts
OTA payout reconciliation
Channel payments from Booking.com, Expedia, and others are matched to the included reservations and posted to the right cash account.
Exceptions
Exception queue with bank evidence
Unmatched deposits, missing batches, and returned items surface in a single queue with the bank line, processor data, and PMS records attached.
Multi-property
Portfolio-wide bank reconciliation
Treasury teams see status across every hotel bank account on one dashboard, with portfolio rollups and per-property drilldowns.
Put hotel revenue on autopilot
From OTA statement to GL posting — faster cash, accurate books, and less manual reconciliation.
Frequently asked questions
Hotel bank reconciliation is the process of matching every deposit and withdrawal on a hotel's bank statement back to the merchant batches, ACH receipts, wires, and folio payments that produced them, then reconciling the result to the cash account on the GL. It confirms that every dollar received at the property has landed in the bank and been recorded correctly.
Continue exploring AR reconciliation workflows
Browse every hotel reconciliation workflow Terrace AI automates.
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Tie PMS revenue and cash to the general ledger.