Night Audit

Question 1

When is night audit done

Answer 1

Night Audit,is generally performed during the late evening hours.

Question 2

Functions of Night audit

Answer 2

Verifying posted entries to guest and non-guest account.
Balancing all Front Office Account
Resolving room status and rate discrepancies.
Reviewing guest credit transactions against establishments limits.
Generating operational and managerial reports.

Question 3

Steps of night audit

Answer 3

Complete outstanding postings.
Reconcile room status discrepancies.
Balance all departmental account.
Verify room rates.
Verify no-show reservation.
Post room rates and taxes.
Prepare required reports.
Prepare cash receipts for deposit.
Clear and back up the system.
Distribute report.

Question 4

Explain 1st step of night audit

Answer 4

Complete Outstanding Balance

Ensure all transaction effecting guest and non-guest are posted in appropriate folio.
Front office Auditor must confirm that all transaction have been posted before Night Audit.
Incomplete posting result in errors in account balancing.

Question 5

Explain 2nd step of night audit

Answer 5

Reconcile room status discrepancies
Errors in room status can lead to lost and uncollectible room revenues and omissions in account posting.
Discrepancies occur because:
A guest may have departed but forgotten to check out.
A guest may be a skipper who left with no intention of checking out.
FO may not have properly closed the folio at check out.

Question 6

Explain 3rd step of night audit

Answer 6

Balance all departmental account
The process used to balance the revenue centre department is often called the trial balance.
The FO system may generate the trial balance initiating the Final Audit report.

Question 7

Explain 4th step of night audit

Answer 7

Verify room rates
If room rack rate and actual rate do not match,FO Auditor consider several factors:
If the room is occupied for members of a group or corporate rate customer.
If there is only one guest in the room and actual rate is approximately half of the room rate.
If the room is complimentary.

Question 8

5th step of night audit

Answer 8

Verify no show

F.O. Auditor may also be responsible for clearing the reservation file or filing and posting charges to no-show account.
They need careful while verifying that the reservation is guaranteed or non- guaranteed.
They need to check whether duplicate reservation on guest name is accidentally created by F.O. staff or not.

Question 9

6th step of night audit

Answer 9

Post room rates and taxes

The posting of room rates and taxes to guest folios typically takes place at the end of the day.
Once posted the room rate and tax report are generated for mangment review.