Front office management in hotels

Front Office Management- II
BSc HM 3rd semester

Index
Unit 1 - Travel Desk
Unit 5 – Night Auditor
Unit 3 - Check out and settlement
process Unit 4 – Credit Control
Unit 2 – Front Office Accounting
Front Office Management II

Unit 1 –
Travel Desk
 Introduction
 Job Description
 Hotel Booking in other cities
 Cab Booking
 Bus booking
 Flight Booking
 Flight Booking
 E_ Ticketing
 Knowledge of current affairs
 Knowledge of city attraction
HomeFront Office Management II

Unit 1 - Travel Desk
Definition:-
Traveldesk is a business that refers
to the Hotel department, who comes in contact
with clients including sales and marketing and
Service Department and look after all kind of
travel arrangement for clients.

Duties and Responsibilities of Travel desk
 Candidate should be computer literate and Internet Savvy with excellent verbal and written
communication skills.
 Good interpersonal and communication skills.
 Dynamic and strong team player.
 To arrange the complete travel needs of clients providing excellence in customer service, safety
and security, good value, etc.
 Consultative service which satisfy their complete travel needs and anticipate any difficulties.
 Maintain accounts and keep track of transaction.
 Allotment of drivers to the respective locations and vehicle.
 Allotment of shifts to the drivers, taking meter readings of the kilometre and all other relatives
activities.
 To book all the travel connection.
 establishIng contact with restaurant and hotel in other cities.

Functions of Travel desk
Travel desk is a very fast field. Generally the travel desk in hotels performs following
responsibilities:-
 Hotel booking in other cities.
 Cab booking.
 Train bus and flight ticket booking.
 Visa processing.
 Local sightseeing arrangement.
 Shuttle service arrangement

Hotel booking in other cities
Travel desk in hotel should maintain healthy relations with different hotel in
Different cities across the world so if a customer wants to book a hotel in other city,
he/she can provide them accommodation. it helps hotel to generate revenue through
the commission and also provide time saving and security of accommodation to the
customer. Normally the travel agent refer chain Hotel if any other wise they try to
accommodate customer in other hotel of the same category and with nearly
equivalent tariff. It is also help in publicity as if someone wants to book in our city,
travel agent of that city will provide us the business.
The travel agent should be aware of the name of various cities globally and in
what countries do they fall in order to avoid confusion of the same name. He/she will
be responsible for booking providing the correct information to the hotel and the
guest to avoid mismanagement.

Cab booking:-
Most of the guests who are not travelling by their
own vehicle ask for this service as they would like to
see the places nearby and the city. So the travel
agent should be very well aware of all the tourist
attractions in and near the city so they can provide
guest with a correct route.
They should try to maximize routes and should
not provide inappropriate information, just to gain
extra revenue. They should clearly explain the
drivers the route which he/ she should follow while
taking the guest. Travel agent should log the meter
reading at the start and end of Journey and get it
verified with the guest in order to avoid confusion.
They should also explain guests all the charges like
Toll-tax, over night charges, two way charges and
other related charges well in advanceFront Office Management II

Train / bus booking Travel agent should
have the list of all the
buses and trains
departing from their
City alongwith their
timings. They should
have direct or indirect
accesd to the Tatkaal
quota as normally the
guest will make last
minute bookings. They
should clearly identify
the arrival and
departure time
accordingly and tell the
guest.

Flight booking
Travel agents should be able to book
direct, indirect, transit, National and
international flights as per the customers
need and availability. They must have a
clear Itinerary for the guest so as to avoid
any sort of delay or inconvenience during
the journey. Travel agent should also
arrange for Transit Visa is required or any
transaction between nearby airport upon
request. They should take all the required
information and then only book the final
tickets for the guest.

Information required for flight booking
 Name is on the Passport
 number of adult children
 date of birth
 class preference (economy, business / executive class, 1st class etc)
 departure date and time
 return ticket needed or not, and return date, time and to which place
 visa type ( single or multiple entry )
 direct / indirect flights
 transit time between flights (also whether Transit Visa is required or not)
 flight route connection
 meal preference (Veg, Non –Veg, diet meal, kids meal, allergic, Religion Meal )
 Seat preference if any (some Airlines may ask)
 Mode of payment (credit /debit card or cash)

An electronic ticket is a digital ticket. It may be issued by an airline, rail
public transport and in entertainment. Once a reservation is made, an e-
ticket exist only as a digital record in computer. Customer usually print out
or are provided a copy of their e-ticket itinerary receipt which contains the
reservation number and the E- ticket number. It is also possible to print
multiple copies of an e-ticket itinerary receipt, hence the “loss” of a ticket
became impossible.
E – Ticketing :-

Knowledge of current affairs
Travel agent must be aware of the current affairs globally so as to
acquaint guest with the natural disaster, terrorist activities, cantegious
disease etc. so the guest can change their travel plans accordingly. Also
travel agent should be aware of the season off season periods of different
location so as to provide guest an enjoyable holiday.

Knowledge of the city attractions:
These days due to an increased Internet access, it becomes easy for travel
agent to provide a list of all major tourist attractions in any city. Ideally, they
must be very well aware of all the attractions available in their city so they can
tell the guest.
Travel desk must provided guided city and nearby tours to the guest so as
to increase revenue for hotel and also creating an unremarkable tour for the
guest as a nominal price which they might end up paying too much if booking
from an external source.

UNIT 2 –
FRONT OFFICE ACCOUNTING
 Defination According to ‘AICPA’
 Types of accounts
 Vouchers
 Folios
 Ledger

Accounting may be defined as the process of collecting,
recording, summarizing and analyzing financial transaction of a
business.
According to the American institute of certified public
accountants (AICPA) “Accounting is an art of recording, classifying
and summarizing in a significant manner and in terms of money,
transaction, and event which are in part at least of a financial
character and interpreting the result
In hotels, the front desk cashier maintains the guest accounts
and ensure the settlement of the same.

Types of accounts
The Front desk maintains two type of accounts:-
1. Guest account:- A guest account is the record of financial transaction between residential
guest and the hotel. This account is created either during the registration of the guest (at
the time of check in) or during reservation if the guest makes an advance payment. The
front office makes or create an individual folio for each guest- for maintaining a record of all
the financial transaction that takes place during the stay of the guest on the basis of a
guest’s folio, the final bill is prepared and presented to the guest for collection.
2. Non guest account:- A non guest account is the record of the financial transaction that
take place between a non-residential guest and the hotel. This is also known as city
account. The front desk cashier maintains record of financial transaction between the local
resident and the hotel to whom the hotel has extended the credit facility for the use of hotel
facilities and services.

Vouchers:-
The front desk cashier is required to present
supporting document of all the financial transaction
recorded in the guest folio. A vouchers which
entitles the bearer to Certain goods services or
discounts upon presentation is a documentary
evidence of a financial transaction for every
purchase, the point of sale present the bill to the
guest receives cash from the guest and gives a cash
receipt to the guest
in case of charge purchase is made, the guest
signs the bill and the same is sent to the front desk
for posting it into the guest account ; the same is
given to the guest at the time of check out.

Types of vouchers:-
 Visitor’s paid out
 Cash receipt voucher
 Travel agent voucher
 Guest allowance
 Telephone call voucher
 Miscellaneous charge voucher
 Commission vouchers
 Restaurant/Bar check

Visitor’s Paid Out
The money paid by the hotel on behalf of guest is known as visitor’s paid out (VPO). A VPO is generally
made for the following charges:
1. Payment for Taxis, travel agency services
2. Porter charges
3. Florist charges
4. Postage and courier charges
5. Emergency medical expenses.
The Paid out are made from the cash bank that is maintained by the front office cashier. A proper
authorization should be taken from the lobby manager before making the VPO.
To make a paid out one should
1. confirm the name, room number and identity of the guest.
2. Fill the Paid out vouchers properly, mentioning the details of service paid for.
3. get the VPO authorized by the lobby manager
4. make the payment
5. post the entry in the guest folio and place the voucher in the Folio docketFront Office Management II

Folios
The front desk cashier transfer the financial transactions that are recorded in the voucher to
individual guest records or the concerned account folio. A folio is a written record of a
guest‘s account and is created at the time of starting a book of Account in the name of a
guest. The initial balance of at the time of opening a folio is zero. It changes with the credit
(Cr) and debit (Dr)transactions. The credit or Debit balance can be known at the time
The folio balance should be zero at the time of closing the folio neither a party (hotel or
guest) should have any outstanding payment.
Types of folios
 Guest folio
 Master folio
 Non guest folio
 Employee folioFront Office Management II

Ledger
Ledger is a collection of the same type of accounts. The front office ledger
has a collection of folios. There are two ledger maintained by the front office
one of them designated as a guest ledger, contains all the folio entries of
resident guest, The Other contains the folio entries of non-resident guest
account and is known as city ledger.

Types of ledger
1. Guest Ledger:- A guest ledger contains the details of all the financial transaction between a resident guest
and the hotel, including charge purchase and the payments received from the guest. It has two parts debits
and credits. By taking a look at the guest ledger, one can find the credit or debit balance of an individual
guest as well as the total credit or debit balance on date. In Manual system, the financial transactions are
recorded in a tabular ledger or tab ledger, which is of two types:-
 Horizontal tabular ledger
 Vertical tabular ledger
2. City ledger:- City Ledger contains the collective account of all the non- resident individual Agencies to
whom the hotel extents credit facilities it is also called as non - guest account. City ledger also contains the
account of resident guest who have left the hotel with out settling their accounts, which would be settled at
a later date by a third party (may be a credit card company, an airline, travel agency, or a corporate house.
This Account would be closed at the time of receiving the complete payment. The Account of Skipper is also
maintained in the city ledger. for a specific period (as per the hotel policy) ; at the expiry of this period, the
same is written off as bad Debt and the account is closed.

Unit 3
Check out and settlement
process
 Guest account settlement
 Cash and credit
 Indian Currency
 Foreign Currency

Unit 3 - Check out and settlement process
Departure procedure:- Last interaction of the guest with the hotel
staff take place during the final phase of the guest cycle – Check
out. During check out, guest formally vacant their room, Settle
their bills and leave the hotel. This phase is very critical as guest
settle their financial transaction With the hotel, and any dispute at
this stage can ruin there entire experience.
On the other hand a smooth settlement of bills and guest
check out would enhance the guest experience. As every hotel
endeavours to achieve high level of guest satisfaction, the
activities of the various department should be coordinated to
ensure a smooth check out. The speed and accuracy of in the
preparation and presentation of bills lead to the maximization of
guest check out satisfaction. Error free billings and speedy
processing of check out request reflect the professionalism of the
hotel and imparts a lasting good impression to the guest.

Steps involved in the departure procedure in
Manual or semi automated system
 The check out request is received at the front desk or bell desk.
 The front desk sent a bell boy to transfer the guests Luggage
from the room to the lobby.
 The Bell boy fills the departure errand card.
 The front desk sends departure notification slip to all
Concerned department.
 The front desk alerts all point of sale to rush last minute credit
transition to the front desk.
 The front desk cashier updates the guest folio on the basis of
recent bills receive from the point of sale
 the guest arrives at the front desk and hands over room key.

 The cashier prepares the master bills and present it to the guest, along with the supporting
vouchers and bills for review.
 The payment is received from the guest as predetermined mode of payment.
 The front desk makes the “luggage out” pass.
 Marketing activities are carried out the front desk, communicates special offers given out
brochures, takes future booking etc.
 The front desk communicate the checkout information to housekeeping and all the other
departments.
 The front office assistant Updates the following friend office record
1. Current room status by removing names Slips from the room rack at the information desk.
2. Guest history card.
3. Arrival / Departure register.

Departure procedure flowchart
 Front desk send departure notifications Slips all
departments and inform all point of sale to send
the last credit transition of the guest.
 Front desk cashier updates guest folios and
prepares the master bill.
 Guest arrives at the front desk for check out.
 Front desk cashier presents the bill to the guest
for review.
 Guest settles the account.
 Front desk makes the luggage out pass.
 Friend desk sends the checkout information to
all departments.
 Front desk updates the front office record.
 Front desk informs the bell desk to send a bell
boy to transfer the guest luggage.
 Bell boy goes to the guest room to pick up
luggage he inspect the room briefly and receive
the room key from the guest.
 Bell boy deposit the room key at the front desk
and takes the luggage out pass
 Bell boy loads the luggage in the guest vehicle.
A Check out request received at the front desk

Departure procedure in fully automated
system:-
Departure procedure in hotel running on a fully automated system is smoother and more
efficient. It involves the following step:
1. The checkout request is received at the Front desk or bell desk.
2. The front desk sends bell boy to transfer luggage from the guest room to the lobby.
3. The front desk inform all point of sale and other department of the hotel about the
departing guest through the interlinked computer Network.
4. Since all the points or sale terminals are Interlinked any credit transition of the Guest
instantaneously get added in the guest folio.
5. The front desk prepares the master bills by settling the bill option of the cashier
module.
6. The front office present the master bills along with the supporting vouchers to the
guest for review.

7. The payment is received from the guest as per the pre-determined mode of
payment.
8. The front office makes the luggage out past.
9. The front desk communicate the departure of the guest to housekeeping and all the
other concerned department.
10. The front office record are updated automatically. these include:
 The auto removal of the name of the departed guest from the in-house guest name list.
 The automatic update of the current room status from occupied to vacant/dirty.
 The automatic updating of the guest history card.

Travellers Cheque
Traveller’s cheque or TC is an international accepted cheque for a sum in a specific currency that can
be exchange elsewhere for local currency or goods. It is also among the most widely accepted mode of
account settlement. Issued by a financial institution, it function as cash but is protected against loss or
theft. The value off the traveller’s cheque is written on it. Traveller’s cheque are useful when travelling,
especially in the case of overseas travel when all the credit and debit cards are not accepted. When a
person exchange traveller's cheque for cash, he usually incurrs a charge or comission though some
banks.
The purchase of traveller’s cheque puts two signature- one front of the issuing authority and the
second in front of the issuing authority and the second in front of the enchasing authority authority. To
prevent misuse, the loss of a traveller’s cheque should be immediately reported to the issuing bank
and local police authority.
While accepting a traveller’s cheque from a guest for the settlement of bills the front desk
cashier should proceed as follows:-
1. Ensure that the second signature is put in front of him.
2. Check the guests passport to establish identity
3. Note down the passport number at the back of the Travellers cheque.
4. If the travellers cheque is in foreign currency calculate the correct exchange value as per the daily
rate.

Credit Cards:-
A credit card is a payment card that allow the owner to obtain goods and service on credit terms,
without paying cash. It may be used repeatedly to borrow money or buy goods and service on credit. In
addition to obtaining goods, credit cards can also be used to obtain cash. The issuers (bank) assures the
seller (hotel) that the owner (guest) has a satisfactory credit rating and that the banks will see to it that
the hotel receives payment for the merehandize delivered. Transaction during a month are totaled and
presented to the card holder for settlement on a monthly basis.
While processing the payment through credit cards, the front desk cashier follows the following
procedures:
1. Check the card holder name on the card
2. Check the expiry date of the card.
3. Check if the card is a stolen card
4. Checks the credit limit of the card; if the amount of the bill exceeds the limit of the credit card, the
cashier requests the guest pay the balance amount by cash.
5. Swipes the card through the EFTPOS terminal for verification and authorization from the issuer of
the credit card Front Office Management II

Credit Cards:-
6. Ask the guest to sign on the transaction slip.
7. Verifies the guest signature on the transactions slip with the
signature pannel at the reverse of the card.
8. Returns the credit card and the carbon copy of the transaction slip to
the guest.
9. Follows the standard operation procedure to process the payment of
the guest folio as per the house customs.

Travel agent voucher
Tour operators and travel agencies selling package
customize tour make bookings for a guest
accommodation, food and beverage and other services.
Mostly they receive advance payment from the travellers
at the time of selling the tour package itself. The travel
agency send a voucher to the service provider (hotel)
with the details of the billing procedure (direct payment
by the guest or bill to TA) and the Services (room and
meal plan) to be provided to the traveller.

Procedure off Travel agent Voucher
The Front desk cashier should follow procedure:-
1. Read the Voucher carefully.
2. Refer to the list of approved TAs to whom the hotel offers.
3. Check the billing instruction carefully.
4. In the case of a foreign travel’s agency voucher, get an authorization from the lobby
manager.
5. Check the expenses covered by the voucher.
6. Collect payment from the guest for the service not covered or included in the voucher, for
example bill for spa treatment.
7. Attach all the vouchers signed by the guest with the master bill and ask the guest to verify
and sign the bill.
8. Do not give the copies of signed bills to the guest (as these have to be presented to the
travel agents who will make the payment to the hotel in this case.
9. Send the guest bill and voucher to the accounts department for the collection of the
amount from the travel agentFront Office Management II

Corporate billing or Bill To company
letter
Some companies whose executive Travel at the expense of the company,
make a deal with hotel where by they determine the rates of different types of
rooms and meal plan to be offered to their executive. The terms and
conditions of the payment are also predetermined. The reservations are
made by the company on behalf of the Traveling executive the executive
carry a letter from their company which is called a bill to company letter, as
proof of their identity.

Processing of BTC Letters:-
1. Establish the identity of the guest by asking him to show his identity card or and
the BTC letter, which is prepared on the company letterhead.
2. Check and verify that the company is listed in the company volume guarantee rate
list of the hotel.
3. Check the services that are included in the agreement with the company any
service or facility utilised by the guest that is not covered by the company should
be charged separately from the guest.
4. Prepare the guest bill, along with all the supporting vouchers and ask the guest to
verify the bill and sign the bill.
5. Does not give the bill to the guest (as these have to be given to the company
which will make the payment to the hotel).
6. Send the bill to the accounts department for collection from the company.

The tourism and hospitality industry is among the major foreign
exchange earners for any Nation. All the foreign visitors in a hotel can
settle their account in the currency of their country- dollar, Euro, pound
etc Except guest who are employed with the UN and its agencies
embassies consultante and high commission. Even if the guest have
already converted their currency into Indian currency they still have to
pay the room rent in foreign currency. Hotels have to take a valid license
from the Reserve Bank of India to deal with foreign exchange. RBI
issues two types of license to deal with foreign exchange- one for the
Purchase and One for the sale of the foreign currency. A hotel with the
Purchase license can only purchase foreign currency which means that
the hotel can accept foreign currency from the guest, but the refund
amount exceeding the billing amount will only be made in Indian
currency.

Procedure of foreign exchange
The front office cashier is the hotels authorized representative for foreign exchange dealing
1. The guest contacts the front desk cashier for foreign exchange.
2. The cashiers request the guests for his passport to verify his identity.
3. The cashier ask the guest for the amount of foreign currency to be exchanged and determines whether the
amount is exchangeable as per the RBI guidelines.
4. The cashier checks the exchange rate from RBI or leading nationalized Bank of the town.
5. The cashier prepare the currency exchange certificate.
6. The cashier request the guest to sign the currency exchange certificate.
7. The guest gives the foreign Currency to cashier in cash or traveler’s cheque.
8. The cashier calculates the total amount to be paid in local currency as per the exchange rate.
9. The cashier dispensers the amount to the guest along with the original currency encashment certificate. He
attached the second copy with the foreign currency or Travellers cheque and leaves the statinary copy in
the booklet.
10. The cashier fills the details of the daily currency exchange transactions in the foreign currency control
sheet. Front Office Management II

Unit 4 –
Credit control
 Meaning Of Credit control
 Why credit control is necessary?
 Credit control measures
 Hotel Credit control policy

Unit 4 – Credit control
The meaning of credit control
Credit control refers to the various measures taken by a hotel to ensure the guest
settle their accounts in full at agreed time.
Controlling credit is the responsibility of the credit manager or clerk, who is a member
of the accounts department. However, the process also necesditates the specific
measures be taken by various departments of hotel at different phases of the guest
cycle. A credit manager cannot fulfil his or her role unless all hotel staff corporate and
perform there own credit control duties.

Why credit control is necessary?
Hotels like any other businesses, need to have a healthy cash
flow in order to survive and succeed, and try to achieve this by
exercising control over the credit given to cash. The cash flow
of a hotel is the money which moves in and out of the business.

Objectives of credit control measures
The main objectives of credit control measures are:
 To prevent work -out (skips). Walk out are guests who leave a hotel without
settling their accounts. They include guest who deliberately instead to leave
the hotel without paying there accounts as well as those who do not realise
that they have to check out with the cashier. This is because they know that
their companies have agreed to settle their accounts.
 To reduce the problems caused by walk - out guest as well as the lost
revenue, they cause a great deal of inconvenience to a variety of peopl, such
as the cashier, who will not have verification of bills, the housekeeper, who
will not know the room status, the management, who may decide to instigate
legal proceedings, and the police, who would have to alert other properties
in their search for the guest.

 To prevent late settlement of accounts. Since most accounts are settled by the guest on
departure, there are few problems of late settlement for these accounts. But corporate or
travel agent accounts are sent to the companies or travel agent after the guest have
Departed. Hotel usually expect that a cheque for settlement should be received within 30
days, in some cases they may have to wait a long time before a cheque is actually receive.
In some instances the agent or company me go out of business before settling the invoice in
which case the hotel does not receive any payment.
Delay in payments can cause cash flow problems for a hotel. when companies or
travel agents take time to settle their accounts, they threat of a bed Debt should be considered.
 To avoid guest dissatisfaction. Guest feel embarrassed and annoyed if, no checking out, they
discover that they cannot satisfactorily settle their accounts for reasons such as credit card
not being accepted by the hote, possession of insufficient cash to pay the account, refusal by
the hotel to accept certain foreign currency, or their account balance being over tge hotel’s
floor limit, the credit card organization refusing to approve a higher limit.

Hotel credit control policy
Hotel will normally allow guests to charge their hotel expenses to their room
account. To ensure that final settlement is paid, hotel must be certain that the
guest are able to pay their bills in full before they are given credit. The credit
limit refers to the maximum level to which a guest’s bill can amount before
some from of settlement is required. Credit limit main vary, and often depend on
the guest’s reservation status and the method of payment.
in general, hotels tend to allow credit to three types of Guest
 Those who have guaranteed bookings with the hotel
 Those whose account will be settled by their companies
 Those who will settle their accounts by credit or charge card.

Guests with guaranteed booking
Most hotels give credit to guests who have guaranteed their bookings
(either by a credit card or a deposit). These Guest are allowed to enjoy the
hotel facilities and services on credit, and to settle their accounts
personally at checkout.
On the other hand work in guests and guests with non- guranteed
bookings or late bookings are usually not given any credit if they settle
their bills by cash or cheque. They are usually required to prepay their
room rate, together with a deposit for incremental expenses, at check in. If
a walk in guest pays an advance deposit or give a credit card for imprint in
order to cover accommodation and incidental expenses, then credit status
may be allowed.

Settlement by corporate accounts
When a company wishes to have credit facilities at a particular hotel, the
hotel will have to check to ensure that the company is solvent, i.e. that it
is capable of paying its accounts. the hotel will need a reference from
the company’s bank; if the reference is favourable, the company is
approved to receive services on credit. The obtaining of credit rating of a
company can be conducted through organization that specialized in this
type of work. The company will then be listed on the list of credit
approved companies prepared by the accounts department, reception
and sells office so that other section or departments can know clearly
which companies are entitled to credit at the hotel. However you should
note that a hotel often approves different credit limits for different
companies.

Accounts settles by credit or
charge card
In most hotels, credit is also given to guests who settle their accounts by
credit or charge card that are accepted by the hotel.
The types of charge or credit card which are accepted by hotels vary
from hotel to hotel .Reasons for this may be the popularity or otherwise of the
card, the fee the hotel pays on accepting a particular charge or credit card,
and the time period taken by the charge or credit card company to settle the
account.
To ensure that guest and Hotel personnel are aware of which charge or credit
card can be used, signs are displayed at the frontdesk and relevant payment
areas, showing which charge or credit cards are acceptable. This policy can
be emphasized to hotel personnel during training sessions and their
introduction programme, so as to ensure that they are all hotel personnel are
fully aware of which card are accepted.

Credit control measures
1. Credit control measures required when receiving reservations
2. Credit control measures at check in
3. Credit control measures during Occupancy
4. Credit control measures at check out
5. Credit control measures after guest departure

Unit 5 -
Night Auditor
 Introdiction
 Night audit function
 Audit Procedure

Unit 5 - Night Auditor
Introduction:-
The night auditor is perhaps one of the most
important person in the hotel. He is the person who
reconciles and records all the cash and credit
transactions of the day. The definition of a night
audit is best explained below:-
‘The audit is a daily review of guest accounting
transactions recorded at the front - desk against
revenue centres transactions.’

The night auditor job includes:-
 Verifying posted entries to guest and non – guest accounts.
 Balancing on front office accounts
 Resolving room status and rate discrepancies if any.
 Monitoring credit limits.
 Producing operational and managerial reports.
He prepare the Daily Sales Recapitulation Sheet of all revenues from various sales
outlets and the daily transcript, a detailed report of all guest transaction. These reports are
very essential for proper managerial analysis and help in decision- making.
The night auditor works at night when all revenue Outlets finish their evening shifts and
submit their sales summaries to the front office cashier. The night Auditors also prepare
important statics for decision-making by the management. The general manager l, Chief
accountant, Front office manager, food and beverage manager and the sales director all
eagerly await his report the next morning to evaluate their respective revenue performance
and make crucial decisions for future operations.

Organisation chart
Although the night auditor co-ordinate closely with the General cashier for
depositing cash. He reports to the income accountant. At night he works
independently ,reporting, administratively and for coordination purpose with the
night lobby manager . All cash stay alert to the night auditor’s requirements and
clarification. He holds the authority to challenge any transaction and ensure that
correct practices were employed by them. He has authority to call cashier from
home when they have retired for the day to clarify transaction and locate missing
check’s.

Organisation chart
Chief Accountant
Night Auditor
Income Accountant

Organisation of the night audit function:-
The income auditor to whom the night auditor report, is responsible
for all income received and due from Hotel service users. He reviews
the night auditor's report before distributing it to the management. The
night auditor works closely with the front office cashier and cashier of
other revenue outlets.

Duties of a night auditor:-
The night auditor is an accountant well versed in hotel accounting
systems and matters of Hotel operation. He has experience in hotel
accounting and is specialist in his field he summarizes all cash and
credit transition of a day at the front office and reaches final balances
of a room and other revenue outlet. In the process he locates and
correct any wrong posting made by cashier from the documents that
there’s submit and reconciles the correct balances. He also
translates the performance of revenue centers in terms of statistics
useful to the management.

 Complete outstanding postings.
 Reconcile room status discrepancies.
 Verify Room rates
 Balance on departmental accounts.
 Very fine no-show reservations.
 Post Room rates and taxes.
 Prepare required reports.
 Prepare cash receipts for deposits.
 Clear all backup systems.
 Distribute reports.
 The night auditors first task is to reconcile the cash and credit sales of all revenue centers in hotel
at the end of each day. The end of the day is perhaps when all revenue outlets finish the evening
shift. Most food outlet close at 12 midnight when his work is starts and nightclub closes at 3 a.m.
He will have to factor those accounts after that period.
The Board duties of night auditor can be
summarized as:

Night audit is generally comprised with the
below functions:
 Shift Commencement: Taking the shift handover from the evening shift.
 Balance Food And Beverage outlets: The Outlets will close their day, hand over
the Check copy and drop the cash collection at front desk.
 Audit and keep things ready for the End of Day: Keep the duplicate copy of
restaurant checks sorted according to the floor number / Room number and
place them on to the respective rooms folders / slots.
 Print Reports for all interfaces from PMS: Posting report for Telephone postings.
 Check the Rate check report / Rate variance report: Make sure that the correct
room rate is entered on to the reservations.
 Check Pending Arrivals: Check all pending arrivals left.
 Check Pending departures: Review pending departures.

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