How to Record Cancellation Fee Revenue in VRTrust
When guests cancel a reservation, any funds that were received and not refunded must be recorded as cancellation fee revenue. This ensures owner statements, property management income, and commissions are calculated correctly.
By default, cancellation fee revenue is recorded as owner income in VRTrust. This article explains how to review cancelled reservations and record retained funds properly.
When Cancellation Fee Revenue Is Required
You should record cancellation fee revenue when:
A reservation is cancelled, and
The guest paid funds that were partially or fully retained, and
Those retained funds were not refunded to the guest
Review Cancelled Reservations
Navigate to the Reservations page
At the top of the screen, locate the banner:
“Review your cancelled reservations”
Click View Cancellations
This view allows you to quickly identify reservations that require review.
Review Payments on the Cancelled Reservation
Select a cancelled reservation
Open the Payments section in the reservation drawer
Here you can see:
Total payment received from the guest
Any refunds issued
The remaining amount retained
Example:
Payment received: $500
Refund issued: $250
Amount retained: $250 (cancellation fee revenue)
Record the Cancellation Fee Revenue
To record the retained funds:
Select Add Adjustment
Enter the amount of funds retained (e.g., $250)
Save the adjustment
Once saved:
The retained amount is recorded as cancellation fee revenue
The revenue is allocated to the owner by default
Repeat this process for each cancelled reservation where funds were retained.
How Cancellation Fees Interact with Management Commissions
If the Cancellation Revenue account is included in your management commission formula:
The Fees & Commissions section will show a commission applied to the cancellation fee revenue
That commission amount becomes payable to the property manager, when applicable
This allows cancellation fees to be treated consistently with other commissionable revenue.
When Cancellation Revenue Should Go to the Property Manager
If cancellation fee revenue should be:
Split between owner and property manager, or
Paid entirely to the property manager
You must create a fee for cancellation revenue to reallocate the income appropriately.
Refer to the dedicated help article on Cancellation Revenue Fees for setup instructions.
Summary
Recording cancellation fee revenue ensures that:
Retained guest funds are properly accounted for
Owner statements reflect accurate income
Management commissions are calculated correctly
Cancelled reservations are fully reconciled
Always review cancelled reservations and record retained funds to keep your VRTrust accounting complete and accurate.