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Night Audit in Front Office
- 1. NIGHT AUDIT By ArpendraChauhan End of Day
- 2. INTRODUCTION • Front officeregularly reviews & verifies accounts • Audit is the daily review of guest account • To ensure accuracy of accounting system • Guest account & non-guest account • Accounts are balanced, checked for accuracy & for credit control • Carried out in the night because of less guest movement • Process of taking inventory of day’s work • Any mistakes made during the day are corrected & balanced
- 3. FUNCTIONS OF NIGHTAUDIT • Verify accuracy & completeness of accounts • Verifying posted entries • Balancing all front office accounts • Resolving room status discrepancies • Resolving rate discrepancies • Maintaining guest credit limits • Producing operational & managerial reports
- 4. DUTIES OF NIGHTAUDITOR • Establishing an End of the Day Night shifts are from 11-8 EOD is closing time for majority of outlets Night audit should be run every night without fail • Cross Referencing Every POS should provide a supporting document (check) against every transaction for verification. All accounts are cross checked with checks & posting in PMS Charges posted in folio are cross checked with the vouchers
- 5. DUTIES OF NIGHTAUDITOR • Guest Credit Monitoring Credit limit should be maintained for all the guest Credit limit may vary from guest to guest High balance report reflects the credit limit of all guests • Audit Posting Formula Previous Balance+ Debits- Credits= Net Outstanding Balance PB+ DR- CR= NOB
- 6. DUTIES OF NIGHTAUDITOR • Bucket Check Process of checking room information Verify the information on RC matches with PMS • Calculate total revenue during the day • Transfer unpaid guest account to city ledger • Prepare night audit reports
- 7. NIGHT AUDIT PROCESS CompleteOutstanding Postings To make sure all transaction are posted correctly before EOD Charges should be posted accurately on the same day itself Charges posted with wrong date will create confusion/ disputes Transaction to be cross checked from HK occupied rooms report Bucket check ensures accuracy & reduces errors
- 8. NIGHT AUDIT PROCESS ReconcileRoom Status Discrepancies Discrepancies to be resolved on time & on same day Imbalance can lead to loss of business & confusion Errors can lead to loss of 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
- 9. NIGHT AUDIT PROCESS BalanceAll Departments Vouchers received from POS to be cross verifies with PMS If not balanced, investigate- review- correction Trial Balance- process of balancing revenue centre departments
- 10. NIGHT AUDIT PROCESS VerifyRoom Rates All the rates should be cross checked If any discount has been given, proper reason should be mentioned If any higher rate is given, proper reason should be mentioned Reasons like type of discount, approved by, source of reservation, documentation etc. Rate change report to be checked
- 11. NIGHT AUDIT PROCESS VerifyNo Show Reservations All guaranteed no show reservations to be charged Reservations dept to be informed about non-gtd no show Make sure there is no duplication of reservation Cross check email correspondence in case any cancellation request received Post Room Rates & Taxes Room rate & taxes posting is done at EOD Once posted, same can be cross checked with a report Room charges gets posted automatically
- 12. NIGHT AUDIT PROCESS PrepareReports Arrival Reports Departure Reports Occupancy Report Bucket Check Reports Rate Variance Reports Cashier Report Cash & Credit Card Report Commission Report Room Revenue Report Housekeeping Report Commission Report High Balance Report 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 What is daily & supplemental transcripts?
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- 27. OPERATING MODES NON- AUTOMATED(MANUALLY) Forms & reports to be made everyday: Daily & Supplemental Transcript Guest & Non-guest folios Cash Sheet & Cash Books Transaction Report Manual Systems are not feasible for large hotels Prone to errors due to volume of data Lengthy process
- 28. OPERATING MODES SEMI- AUTOMATED Accountposting machines are used Electromechanical & Electronic (Same functions mostly) Electromechanical can store limited no. of departmental totals Cannot retain total balance Cannot be combined with other equipments at POS
- 29. OPERATING MODES Machine Postingsteps Locating the folio Take folio out of the bucket Place folio along with check in posting machine Enter previous closing balance Post the check amount with department code Machine balances the folio Folio is re-filed in the bucket Forms/ Formats Used Cash Report Night Auditor Report/ D-Report (Opening balance, debits, credits, net outstanding balance )
- 30. OPERATING MODES FULLY AUTOMATEDSYSTEM Complete computer interfacing & auditing All accounts are tallied with reports Lesser errors & more accurate Computer guides the auditor through all stages Certain data is input before starting the audit All the accounts are automatically updated
- 31. IMPORTANT TERMINOLOGIES • BucketCheck is the process to ensure all the details in RC matches with the system • Control Folio- IGNORE • Daily Transcript is a detailed report of all guest accounts. Indicates each charge transaction affecting a guest account for the day. Used as a worksheet to detect posting errors. • End of Day is the stopping point of business date OR the process of changing the business date in the system. • In Balance is the state of accounts when the total of debit & credit amounts are equal
- 32. IMPORTANT TERMINOLOGIES • Outof Balance is the state of accounts when the total of debit & credit amounts are not equal • Room Status Report is the report that allows front desk agent to identify vacant & ready rooms. • Room Variance Report is the discrepancy report between HK & FO • Supplemental Transcript is a detailed report of all NON GUEST ACCOUNTS. Indicates each transaction that affected non guest accounts for that day.
- 33. IMPORTANT TERMINOLOGIES • TrailBalance is the process of balancing front office accounts with transaction information by department before the final balance is determined & the hotel day is closed. • System Update is a fully automated audit routine that accomplishes many of the same functions as a non-computerized front office audit. Daily system update enables: File reorganization System maintenance Report production Provide an EOD time frame