A folio is the running account of a stay. It holds every charge (room and tax, food and beverage, parking, incidentals), every adjustment and every payment, and shows the balance due at any moment. A reservation can have several folios: one for the room billed to a company, one for incidentals paid by the guest.
Good accounting practice says a posted charge is never deleted to fix a mistake: it is corrected with an adjustment or a reversing entry, so the audit trail stays complete.
In practice: review folios the night before departure, not at the desk during checkout. Routing charges correctly (company vs guest, master account vs individual) and clearing unclear items ahead of time is what keeps checkout fast and avoids disputes weeks later.
Simple hotel property management software for independent hotels, chains and groups.
Try it in your hotel