Front Office Services Module 2:

CONDUCT NIGHT AUDIT

Process Internal Financial Transactions

Introduction
The night auditor will check all financial transactions and confirm the accuracy
of the posting. Some of these financial transactions may be cash or credit card
payments.

Cash Payment
- Guests make advance deposit payment on their room accommodation, as
security deposit at check-in. Payments may be a part of the room charge of may
be a whole amount of the room charge which have to be posted onto the guest
account. If the guests have not arrived, the payments are posted as credit until
consumed. When the guests arrive, the night auditor will post a room charge and
the amount is deducted from the charge. Adjustments are recorded thru a receipt
to verify posting.

Figure 1. Money in tray

Credit Card Payment

- If guests pay through credit card, they charge their bills to their room accounts,
such as food and beverage, entertainment, room service, mini bar, gift shops,
sporting facilities, disbursements, laundry, functions, meeting rooms and then
settle at check out by authorizing payment. The posting of the bill will be done at
point of sale where the transaction occurs and a receipt number or transaction
number verifies the posting.

- Once a night auditor has completed posting charges to guest accounts he/she will
check the outstanding balance or amount owed on each guest folio. This is then
compared to the establishment’s predetermined floor limit for each method of
payment specified by the guest on check-in. If any accounts are over the limit the
guests must be contacted first thing in the morning.
- If a guest has booked with a travel agent or taken a package deal the hotel will
issue a voucher for use to secure services such as breakfast or a meal in a
restaurant. Some guests may use gift cards or vouchers to pay for services. These
still need to be processed through a cash register to establish an audit trail and
verify the payment.
- Complimentary services or services offered free of charge may be offered as part
of a complaint settlement or as part of a package deal. Once again these services
need to be processed through the cashier system to establish the audit trail.
Vouchers or complimentary certificates need to be checked for currency or expiry
date.

Validate transactions and charges that have been posted

All transactions should be traceable and therefore can be audited. Each document
has a code or number which can be a means of identification.
Transactions are validated by:
 checking the code or numbering system of an item on a guest account and
linking it to a hard copy or electronic cash register record which will also include a
time stamp and server ID.
 Checking on individual accounts of guests to verify charges and validate the
record. It may be possible that human error may be a source of problem in data
entry.
 Checking on the transaction code or identification and a docket or reference
number to ensure only legitimate charges are posted. Complimentary and non-
monetary charges must be cross-referenced with supplier of the complimentary
service.
Posting charges to guest accounts
In a Computer Property Management System for example the Micros Fidelio
OPERA system, the term “window” is an alternate name for a folio. It is called
“window” because when viewing a guest folio to the screen, staff are able to see
multiple folios that appear like windows.

Multiple windows or folios are used if the guest is sharing a room or if a third
party is paying part of the account. For example Ms. Christene Reyes is a cabin
crew for a major airline. Her airline company pays for her room and meals when
she is away from her home city and Christene pays for extras such as the in-house
movie she watched and the snack items she ate from the mini bar. So if the staff
will view her guest folio she can see multiple folios flashed in the computer
monitor.

Reconcile posting of transactions within the areas of responsibility

Reconciling an account means proving or documenting that an account balance is
correct. The reconciliation process is done by comparing guest accounts with
departmental and cashier reports in hard copy or electronic form and any source
documents. For example, after all charges have been posted to the account of a
guest, say a certain Mr. Cabrera, from the invoices like food charges from dining in
a restaurant, a purchase of a merchandise from the gift shop and a massage fee
from the hotel spa, room accommodation charge is then posted by the night
auditor. The night auditor will check that quoted room rate of say Php 2,500.0 is
added to the account for the day. However, there was a request for an additional
bed in his room. This should then be added to the account of Mr. Cabrera as
evidenced by a voucher issued to Mr. Cabrera by the Housekeeping Department.
The report of the housekeeping department must reflect this extra bed issued to
the guest which the night auditor will have to check.
 A night auditor will also check the status of each room to ensure the reports
are given to the Housekeeping and used by Front Office the next day so as to
accurately reflect whether a room is occupied, vacant, clean or dirty.
 The guest folio or account will be checked against the final, most up to date
room status report of the day produced by Reception or Housekeeping. Any
discrepancies will be monitored and fixed.
 If the room status report indicates that a room is occupied, there should be
guest information in the guest folio file for that room. A check with the
Housekeeping or Reception will have to be done here for an explanation of the
discrepancy.

How to Identify and Resolve discrepancies

When posting internal charges, it is inevitable that errors may be committed. Thus,
quality control must be contained even before the guests detect the presence of a
problem and this must be avoided at all costs.

Discrepancies can be recorded using a guest folio discrepancy report. At the end of
the day the night auditor takes note of any variances on guest account. He will file
the report with the rest of the daily documentation for later reference and
checking.

Some common discrepancies include:

1. Guest name does not match room given - Check with the front Office or
reception desk for any room changes, some share arrangements may have not
been noted and the second name was not listed in the system such as in the case
of joiners in a room.

2. Incorrect price posted. Make the necessary correction which is by posting a

negative post to a separate window or folio. If the amount has been entered
correctly but the quantity is incorrect then an adjustment is processed when the
total charge for an item is altered.

3. Guest exceeds house/guest limit If a guest exceeds their house/guest limits with
excess charges staff will ask the guest to settle part or all of the account and may
list the guest as ‘Cash Only’ until the situation has been rectified.

4. System errors occurredErrors in the system can only be handled by those with
technical skill on electronic system. If a system failure is encountered, the usual
process is torevert to a manual system. A hard copy template of documents and
manual cashiering systems needs to be available as backup.
5. Missing checks If there is any missing checks then the same has to be posted
manually, Like
wise any duplicate postings has to be voided. Tally the cash posting in PMS and
print the cash receipt for the dropping done by restaurant team. Check the lost
posting PM (property management) to see if there is any lost interface posting
lying on the folio.

Directions: Answer the following questions. Write your answers on your

notebook, take a picture of it and submit it to your subject teacher for marking.
1. The register/terminal you are balancing shows a major discrepancy: what
action might you take to investigate and/or resolve this discrepancy?
2. Describe the interpersonal skills you should use when processing financial sale
transactions with customers/guests.
3. What is an advance payment and how should this transaction be
documented in a travel agency, hotel or restaurant?

Jumbled Words
Direction: Rearrange the following words to make a meaningful phrase that
relates to the lesson.
1. given not does match room name guest
2. limit house exceeds guest
3. transactions posted have charges and been validate
4. accounts guest to charges posting
5. individual accounts of guests checking on

Direction: Match the words in column A with the descriptions in column B.

Write the letter from column B in the space before the number in column A.
Column A Column B
______1Guest Folio A. This is done by comparing guest
 accounts with departmental
and cashier reports in hard copy or
electronic form and any
source documents.
______2. Account reconciliation B. This document is checked against
the room status report for
any discrepancy.
_____3. Outstanding balance C. A term so called for its resemblance
to the object when staff
see multiple folios on the screen.
_____4. Night Auditor D. Once he completes posting charges
to guest accounts he
checks the outstanding balance owed
on each guest folio.
_____5. Window E. It is the amount that the guest will
have to pay as reflected in
his folio that the night auditor has
checked the previous night
upon guest check-out.