Night Audit in Front Office Introduction Functions of Night Audit Duties of Night Auditor Audit Posting Formula Bucket Check Night Audit Process Night Audit Reports Rate Variance Report Revenue Report Occupancy Report Commission Report High Balance Report Operating Modes

1. Night Audit
Front Office

2. Process of
Night Audit
Bucket Check
& Reports
Introduction
01 02
Duties of
Night Auditor
03 04
TABLE OF CONTENTS

3. INTRODUCTION

4. ● Front Office regularly reviews & verifies guest
accounts
● Audit is the daily review of guest account
● Ensures accuracy of accounting system
● Guest account & non-guest account both are
monitored
● Accounts are balanced, checked for accuracy & for
credit control
● Carried out in the night due to less guest movement
● Process of taking inventory of day’s work
● Any errors made during the day are corrected &
balanced

5. FUNCTIONS OF NIGHT AUDIT
Verify posted entries
Verify accuracy &
completeness of accounts
Maintaining credit
limits
Balancing all front
office accounts
Producing operational
& managerial reports
Resolving room status
discrepancies

6. THE
NIGHT AUDIT
PROCESS

7. • To make sure all transactions are
posted before EOD
• Charges should be posted accurately
on the same day itself
• Wrong postings in terms of amount,
date or transaction code will create
confusion at the time of check out
• Transaction to be cross checked from
HK occupied rooms report
• Bucket check ensures accuracy &
reduces erros
Complete Outstanding
Postings
Reconcile Room Status
Discrepancies
• Discrepancies to be resolved on time & on
same day
• Imbalance leads to loss of business &
room revenue
• All reports to be reviewed to avoid any
errors
• All errors to be corrected same night
itself
• HK report to be tallied with FO (Room
Status Report)
• Guest has physically left but not checked
out. Skipper guest. Folio not closed
properly at check out

8. Balance all
Departments
Verify Room
Rates
• Vouchers received from POS
to be cross verified with PMS
• Investigate-Review-Correct,
if not balanced
• Trial Balance: process of
balancing revenue centre
department.
• All the rates to be cross
checked
• Valid reason & approval to be
given for a discount as well as
for an upgrade
• Reasons like type of discount,
approved by, source of
reservation etc.
• Rate change report to be
checked

9. • All guaranteed no show
reservations to be charged
• Reservations to be
informed about the non-
guaranteed No Shows
• Make sure there is no
duplication of reservations
• Cross check mail
correspondence in case
any cancellation request
came
Verify No Show
Reservations
Post Room Rate &
Taxes
• Room rate & taxes
posting is done at the end
of the day
• All the postings need to
be cross checked with a
report
• Room rate is posted
automatically

10. DUTIES OF
NIGHT
AUDITOR

11. Cross Referencing
• Every POS provides a supporting
document against every transaction
• All postings are cross checked with
checks & posting in PMS
• Charges posted in folio are cross
checked with the vouchers
Establishing an End of Day
• Night shifts are from 2300- 0800
• EOD is closing time for most of the outlets
• Night audit needs to be run every night

12. Guest Credit
Monitoring
• Credit Limit should be maintained for
all the guests.
• Credit Limit may vary from guest to
guest.
• High Balance Report reflects the
credit limit of all the guests.
Audit Posting
Formula
Previous Balance+ Debits-
Credits= Net Outstanding Balance
(PB+ DR- CR= NOB)
Bucket Check
• Process of checking room information
• Verify information on RC with PMS
• Calculate total revenue of the
day
• Transfer unpaid guest account
to city ledger
• Prepare night audit reports

13. NIGHT
AUDIT
REPORTS

14. https://help.innfinity.com/Night_Audit/Night_Audit_Reports.htm
https://docs.oracle.com/cd/E53547_01/opera_5_04_03_core_help/7084.htm
Arrival Report
Departure Report
Occupancy Report
Bucket Check Reports
Rate Variance Reports
Cashier Report
Cash & Credit Card Report
Commission Report
Room Revenue Report
Housekeeping Report
High Balance Report
Credit Limit Report

15. ASSIGNMENT
1. From the Night Audit Reports slide, find out the format & headers
of all the reports.
2. What is: (A) Bucket Check (B) Daily Transcript (C) EOD (D) In
Balance (E) Out of Balance (F) Room Status Report (G) Supplement
Transcript (H) Trial Balance (I) System Update
3. Why is the night audit performed only in the night? What happens
when it is run during the day?
4. If it is EOD, then what happens to all the pending arrivals &
departures

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