USALI 12 was created to transform a hotel’s profit and loss statement into an effective management tool. It is based on dividing results into clear blocks that can be monitored, analyzed over time, and compared to plans or comparables. This helps management understand where exactly profit is being generated and why.
At the center of this logic are USALI departments—manageable units. Incorrectly defining departments typically leads to one of two problems: reporting either becomes too general and unmanageable, or it devolves into a long list of “mini-departments” for which it is impossible to consistently allocate expenses and ensure accountability.
What are “USALI departments” really?
In the context of USALI 12, a department is a manageable operating unit with clear economics and accountability. It exists to produce repeatable, analyzeable results:
- Revenue;
- Direct expenses;
- Controllable margin.
USALI Departments in the USALI 12 P&L Structure
In USALI 12, the P&L structure is organized to provide the most useful management analysis, from revenue to operating profit. Departments are organized into blocks, grouping related revenue and direct expense items together, allowing you to:
- Compare results by month or period;
- Identify the causes of budget deviations;
- Analyze the profitability of each business area;
- Make decisions based on margin metrics, not just revenue.
Proper organization of departments is a fundamental element of the management accounting mechanism. It helps management see which areas are performing effectively and which require adjustments, cost optimization, or a strategy review.
Defining departments according to the USALI 12 standard is not a formality, but a key element of management reporting in the hotel industry. A department is not just a block name, but a financially measurable unit where revenue, direct expenses, and margins are recorded and controlled. Departments should be created from a management perspective, not a cataloging one. Then reporting becomes a tool, not cumbersome statistics. If departments are properly structured, the hotel receives a transparent and useful P&L, which helps make informed decisions, increase profits, and improve overall business performance.