Pearson New International Edition International pcl tp indd 1

Folio Accounting
Bucket Check
No-Show Billings
End-of-Day Balances
ACCOUNTING FOR OTHER REVENUES
Ledger Management
Guest Ledger
City Ledger
Credit Balance Management
Credit Limit Reports
Credit Limit Strategies
End-of-Day Reconciliations
Other Night Audit Tasks
DATA REPORTING
Purpose of Night Audit Reports
Sources of Data
Types of Reports
Emergency Reports
Revenue Generation Reports
Reservation Activity Reports
Exception Reports
Management-Oriented Reports
Report Distribution
DATA MANAGEMENT
Types of Data
Data Resetting
Data Archiving
Night Audit and Report
Management
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NIGHT AUDIT AND REPORT MANAGEMENT
Chapter Preview
The number of financial transactions that occur every day in a hotel can be substan-
tial. In addition, the amount of nonfinancial information produced daily can be siz-
able, for example, when guests make reservations and arrive or depart. Because of the
complexity of these financial and operational records, and because of the potential for
errors when posting charges or recording data, hoteliers need to review and summa-
rize information daily. This review process is called the night audit. Traditionally, the
process occurs during the night when activity in most hotels is slowest and, therefore,
when the reviewer (night auditor) experiences the fewest interruptions.
This chapter focuses on the major functions of the night audit. These include a
thorough review and summary of the day’s financial transactions made by in-house
guests and others who used the hotel’s services. Financial records are reviewed for
accuracy and completeness. In the process, important information is summarized and
distributed to those who need it.
Additional night audit functions include the summarization, distribution, and
safe storage of nonfinancial operating reports and data that can help the FOM and
other hotel managers. Most hotels now have automated systems for completing the
night audit. When properly understood, designed, and managed, the night audit can
be carried out quickly and efficiently.
CHAPTER ROADMAP
Data Reporting
Accounting for
Other Revenues
Accounting for
Guest Charges
Overview of Night 
Audit Functions
Data Management
Review the role of the 
night auditor in 
accounting for guest and
non-guest charges, in
reconciling charges with 
applicable department 
revenues, and in generating
reports and safeguarding 
confidential data.