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NIGHT AUDIT PROCEDURE

parent night c/u
by

sunita badhwar

on 25 June 2013

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Transcript of NIGHT AUDIT PROCEDURE

The Night Audit Process
•Discovery and correction of front office accounting errors through the cross-Referencing process.
•Creation of accounting and managerial reports (ex. Average Rate, Revenue Per Available Room (RevPAR), Occupancy Percentage, usage of package plans and other marketing programs, and the number of group rooms and complimentary rooms occupied).
Steps of the night audit process are
1.Complete outstanding posting
2.Reconcile room status discrepancies
3.Verify room rates
4.Balance all departmental accounts
5.Verify no-show reservations
6.Post room rates and taxes
7.Prepare reports
8.Prepare cash receipts for deposit
9.Clear or back up the system
10.Distribute reports
Complete Outstanding Posting
The Night Auditor must confirm that all transactions have been posted before starting the audit routine.
Reconcile Room Status Discrepancies
The Night Auditor must review Front Office (Occupancy) and Housekeeping Room Status Reports to reconcile and finalize the occupancy status of all rooms for a given night.
Verify Room Rates
The Night Auditor shall compare Registration Records with system-generated room report. If room’s rack and actual rates do not match, the Night Auditor shall consider the following issues:

If the room is occupied by a member of a group or by a corporate-rate customer, is the discounted rate correct ?
•If the room is occupied by a guest with a package rate or on a special discount offered through the hotel’s reservation distribution channels, is the discounted rate correct ?
•If there is only one guest in a room and the actual rate is approximately half the rack rate, is the guest part of a shared reservation ? If he / she is, did the second guest register ?
•If the room is complimentary, is there appropriate supporting evidence for the rate (for example, a complimentary room authorization form) ?
What to take and Where
Get input and advice from as many sources as possible (parents, older siblings/friends, teachers, coaches, people in the business etc)
Review your strengths and weaknesses (careercruising.com)
Research jobs- employment rates, money, happiness
University is broad based especially at the start so changes can be made- (60 % of people do)
Attend the presentations, Open Houses
Pray
The Night Auditor shall compare vouchers received at the front desk and other documents with revenue center summaries .
This process of balancing all Revenue Center Accounts is called Trial Balance.
Night Auditors may prefer to conduct Trial Balance before posting day’s room and tax charges. This way, if the trial balance was correct, and the final balance turned to be wrong, the Night Auditor can deduce that the error is coming from room and tax posting.
Balance all Departmental Accounts
The Night Auditor is responsible for:
•Clearing Reservation Files
•Posting Charges to No-Show Accounts (Guaranteed Reservations)
While doing so, the Night Auditor shall pay attention to the following points:
•Duplicate reservations
•Misspelling of Guest Name and / or Surname or reversing them
•Front Office or system entry errors
•Front Office foregetting to cancel properly a reservation
Verify No-Show Reservations
Posting room rates and taxes takes place typically at the end of the day.
The advantages of posting room rates and taxes automatically by the fully automated system are:
•Room Rates and Taxes posting to appropriate electronic folios can be done in minutes.
•Posting is reliable, accurate with no pickup, tax calculation, or posting errors.
Post Room Rates and Taxes
The Night Auditor shall prepare reports that indicate the status of front office activities and operations.
Some of the reports prepared by Night Auditor are:
•The Final Department Detail and Summary Reports help prove that all transactions were properly posted and accounted for.
•The Daily Operations Report summarizes the day’s business and provides insights into revenues, receivables, operating statistics, and cash transactions related to front office.
•The High Balance Report identifies guests whose charges are approaching an account credit limit designated by the hotel (the house limit).
•Specialty Reports (Ex. Group Sales Report dispatched by each group, showing number of rooms occupied by each group, and revenue generated by each group), (Ex. Report that lists guests who stay frequently and guests who are VIPs).
Prepare Reports
The Night Auditor should prepare a Cash Deposit Voucher as part of the Audit Process. If cash Receipts have not yet been deposited in the bank, the Night Auditor should compare the postings of Cash Payments and Paid-outs with Actual Cash on hand.
In some hotels, Front Desk Cashiers might be called to deposit cash at the end of their shifts without knowing how much in cash receipts that the system has recorded for them. This process is called Blind Drop.
Under this practice, Night Auditors shall compare system totals per cashier with the actual cashier drop document. Had any discrepencies occur, the Night Auditor shall report this to General Cashier, Front Office Manager or Controller.
Prepare Cash Receipts for Deposit
At least 2 Guest Lists must be printed for back up and emergency use: one for the Front Desk staff and the other for Telephone Operator. Moreover, a printed Room Status Report shall be prepared to enable front desk agents to identify vacant and ready rooms, should the front office system become inoperable.
In addition to that, a Guest Ledger Report shall be prepared which contains the opening and closing account balances for all registered guests shall be generated
. Front Office Activity Report is generated to include expected arrival, stay-over and departure in formation for several days.
The system-generated front office information shall be copied (backed up) onto magnetic tape, optical tape, or other media.
Clear or Back Up the System
Due to the sensitive and confidential nature of front office information, the Night Auditor must promptly deliver appropriate reports to authorized individuals.
Report types:
•Revenue
•Daily Guest List
•Recapitulation Report
•Daily Departure Statement Report
•Advance Booking List
•Check In Report
•Check Out Report
•Expected Departure list
•Front Office Collection
•City Ledger Transaction Report
•Accounting Balance Report
•Item Wise Revenue
•Room Wise Revenue
•Daily Sales Report
Distribute Reports
Most of the errors encountered in the night audit process system from the fact that the hotel is not operating under fully automated system.
III- Verifying the Night Audit
ANY QUESTIONS???????
The night audit process focuses on two areas:
Full transcript