Pearson New International Edition International pcl tp indd 1

Objective 1
Objective 3
Review the role of the 
night auditor in managing 
guest and city ledgers,
in monitoring guest credit
balances, in completing
end-of-day reconciliations, 
and in completing other
night audit tasks.
Objective 5
Identify the types of data
most important for night
audits, review how data
are reset to a zero balance,
and discuss basic 
procedures to archive
appropriate data.
Explain procedures used
by the night auditor to
reconcile guest folios,
undertake bucket checks,
bill no-shows, and 
establish end-of-day
balances.
Objective 2
Objective 4
Discuss the purpose of
common night audit 
reports, note sources of
report data, and explain
common types of night
audit reports.
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NIGHT AUDIT AND REPORT MANAGEMENT
In some hotels the night auditor reports directly to the FOM. In others, the
night auditor reports to the controller. In still others, especially in smaller properties,
the night audit may be performed by the FOM or the controller. In all cases, how-
ever, two tasks are part of night audit activities: a series of accounting reviews and
summarization and reporting of operating data.
Accounting Review Functions
Most hoteliers recognize the importance of compiling, balancing, and reviewing their
financial accounts daily, and they do so with a night audit that is usually completed
between 2:00 a.m. and 5:00 a.m. The time can easily vary by several hours in the same
property. What is critical is that the time the night audit is completed be recorded, so
that the audit can be considered 100 percent complete to that point in time. In a mod-
ern hotel, the PMS is programmed to complete almost instantaneously much of the
night audit. When it is complete, the previous day is considered ended; any additional
transactions are then recorded as part of the “new” day. Because manual completion of
the night audit generally takes several hours, by hotel tradition any transactions that
occur during the night audit process are considered to have occurred during the new day.
In a large hotel, literally thousands of financial transactions occur daily. Some
such as room charges, in-room movie and minibar purchases, telephone toll charges,
and overnight parking fees apply to registered guests. Other charges, such as for
meeting rooms, audiovisual equipment rental, and food and beverage purchases, may
be initiated by registered guests or others who are not guests. Additional accounting
transactions that do not relate directly to a single day’s hotel sales are managed at the
front desk. These include computing travel agent commissions, posting advanced
deposits received from guests for future reservations, and debiting or crediting vari-
ous receivables accounts. In most hotels the accounting process performed as part of the
night audit is divided into two main parts: (1) review of guest charges and (2) review
of non-guest charges and property accounting.