---
title: What Is a City Ledger in a Hotel? How It Works | bedsKey
description: The city ledger is a hotel's accounts receivable for companies and agents billed after the stay. How it works, an example and how to manage it.
canonical: https://bedskey.com/glossary/city-ledger/
updated: 2026-09-24
publisher: bedsKey (Innovate Solution)
---

# What is a city ledger?

**In short:** A city ledger is a hotel's accounts receivable for guests who do not pay at check-out: companies, travel agents and other accounts billed after the stay under agreed credit terms. When the guest leaves, the folio balance moves from the guest ledger to the account's city ledger and stays there until the invoice is paid.

Updated September 2026

## Guest ledger vs city ledger

| | Guest ledger | City ledger |
|---|---|---|
| Who owes | Guests currently in house | Companies and agents after departure |
| When it is settled | At check-out | On the invoice's credit terms |
| Typical examples | Room, restaurant, laundry for an in-house guest | Corporate stays, agent group bookings |

## How a city ledger transfer works

1. A corporate guest checks out with a $420 balance on their folio.
2. The desk settles the folio to the company's city-ledger account instead of taking payment.
3. An invoice is issued to the company's accounts contact.
4. When the company pays, the receipt is matched against that invoice, or across several invoices if one payment covers many stays.

## Managing city-ledger risk

- Agree credit terms and a credit limit per account before the first stay.
- Invoice promptly and send statements regularly.
- Match receipts to invoices so the outstanding balance is always accurate.
- Review ageing: balances unpaid past terms need follow-up before new stays are extended on credit.

## How bedsKey handles the city ledger

bedsKey keeps company and travel-agent profiles with negotiated rates and credit terms; a negotiated contract rate attached to a company is enforced on every booking for that company. Folios settle to the city ledger at check-out, invoices are emailed to the company's accounts contact, and receipts are matched across invoices. Invoices, receipts and credit notes are branded and sequentially numbered.

## Frequently asked questions

### Why is it called a city ledger?

Historically the ledger held accounts for local businesses in the city that were billed later, as opposed to guests in the house. The name stayed as the term for hotel accounts receivable.

### Who gets city-ledger billing?

Usually companies with a signed rate agreement, travel agents and tour operators with credit terms, and group organisers.

### Can one payment cover several invoices?

Yes. In bedsKey a receipt can be matched across several invoices for the same account.

## Related terms

- [Guest folio](https://bedskey.com/glossary/guest-folio/)
- [Night audit](https://bedskey.com/glossary/night-audit/)
- [ADR](https://bedskey.com/glossary/adr/)
- [PMS](https://bedskey.com/glossary/pms/)
- [bedsKey Folio & Night Audit](https://bedskey.com/features/billing-night-audit/)
- [Full glossary](https://bedskey.com/glossary/)

## Talk to bedsKey

Book a demo: https://bedskey.com/contact/ · sales@bedskey.com