When guests cancel reservations and funds are retained, those amounts must be recorded as cancellation fee revenue. By default, cancellation revenue is allocated to the owner in VRTrust.
If cancellation fee revenue should be allocated to the property manager—either in full or split between the owner and the property manager—you must create a Cancellation Fee in Fees & Commissions.
This article explains how to set up and apply that fee.
When This Setup Is Required
Create a cancellation fee for the property manager when:
Cancellation revenue should be paid to the property manager, or
Cancellation revenue should be split between the owner and the property manager
If 100% of cancellation revenue belongs to the owner, do not use this setup. Instead, refer to the help article on Recording Cancellation Revenue to Owners.
1. Create a Cancellation Fee for the Property Manager
Go to Fees & Commissions
Select Other Fees
Click Add Fee
Choose Other Fee
Configure the fee:
Fee Name: Cancellation Fee – PM
Type: Percentage
Rate:
50% to split revenue between owner and property manager
100% if the property manager receives all cancellation revenue
Booking Channels: Select the channels where this fee should apply
2. Configure Advanced Settings
Open Advanced Settings and review the following:
Revenue Recognition Date
By default, cancellation revenue is recognized on the cancellation date
Include Reservations
Select Cancelled Only to apply the fee only to cancelled reservations
If All Reservations is selected, the fee will still apply only when a cancellation adjustment is entered on a cancelled reservation
3. Configure Account Mapping
Set up the accounts as follows:
Revenue Account: Cancellation Fees
Revenue Party: Property Manager
Expense Account: Cancellation Fees
Expense Party: Owner
Account Included in Fee: Cancellation Fees
The cancellation fee PMS lines should already be mapped to the Cancellation Fees revenue account in your reservation mappings.
This configuration:
Removes the applicable portion of cancellation revenue from the owner
Allocates it correctly to the property manager
Save the fee once settings are confirmed.
4. Apply the Cancellation Fee to Listings
To apply the fee automatically:
Go to Fees & Commissions → Listings
Select the listings where the fee should apply
Click Add New
Select Cancellation Fee – PM
Set the Start Date to:
The first day of the month for which you are issuing your first owner statements in VRTrust
Click Submit
5. Applying Cancellation Fees Manually (Optional)
If cancellation revenue should only sometimes be shared with or paid to the property manager:
Do not apply the fee to listings
Instead, add the fee manually in the Adjustments section of Fees & Commissions on the reservation
For step-by-step instructions, refer to the help article on Cancellation Fee Adjustments.
Summary
Creating a cancellation fee for the property manager allows you to:
Allocate retained cancellation funds correctly
Split cancellation revenue between owner and manager when needed
Apply fees automatically or manually, depending on your workflow
Keep owner statements and property management income accurate
This setup ensures cancellation revenue is handled consistently and transparently in VRTrust.