How Cancellation Fees Apply to Cancelled Reservations (and How to Adjust Them)
This article shows how a Cancellation Fee you’ve already created is applied to cancelled reservations in VRTrust, and how to make manual adjustments when an exception is needed.
When to Use This Workflow
Use this workflow when:
A reservation is cancelled
Funds were received and not refunded
A Cancellation Fee (for the property manager or split with the owner) has already been set up
You need to review, confirm, or override how the cancellation revenue is allocated
Review Cancelled Reservations
Go to the Reservations page
At the top of the page, select View Cancellations
Choose a cancelled reservation to review
Review Payments on the Cancelled Reservation
Open the reservation drawer
Review the Payments section
Here you can confirm:
Payment(s) received
Refunds issued
Amount retained by the business
Record the Cancellation Revenue
Select Add Adjustment
Enter the amount retained and not refunded
Save the adjustment
This records the cancellation fee revenue for the full retained amount.
Review How the Cancellation Fee Is Applied
After saving the adjustment, review the Fees & Commissions section of the reservation.
You will see:
A portion of the cancellation revenue allocated to the property manager
The remaining portion allocated to the owner, based on your Cancellation Fee setup
Management Commission Interaction
If:
The Cancellation Fee revenue allocated to the owner is included in your management commission formula
Then:
A management commission will be applied to that owner portion
The commission becomes payable to the property manager
Adjusting the Allocation for Exceptions
If a specific cancellation should not follow the default fee split, you can adjust it manually.
Increase the Amount Paid to the Property Manager
If the property manager should receive more than the default allocation:
Add an Adjustment
Select Cancellation Fee – PM
Enter a positive amount (e.g.,
$100)Add a description such as Cancellation Fee Adjustment
This increases the amount paid to the property manager.
Decrease the Amount Paid to the Property Manager
If less revenue should go to the property manager (and more to the owner):
Add an adjustment using Cancellation Fee – PM
Enter a negative amount
Allocate the Entire Cancellation Amount to the Owner
If the entire cancellation revenue should go to the owner:
Remove the full cancellation fee revenue allocated to the property manager
Add an adjustment allocating the entire amount to the owner
Remove any other fees applied to the cancellation reservation
This may include:
Management commission
Other applied fees
To remove fees:
Select the icon next to the fee
Add an adjustment to remove it
Repeat for each fee that should not apply
After these removals:
Total to property manager = $0
Entire cancellation revenue is allocated to the owner
Removing an Adjustment
If an adjustment was added in error:
Select the trash icon next to the adjustment
The adjustment will be deleted immediately
Summary
Reviewing cancellation fee application allows you to:
Confirm default cancellation fee behavior
See how revenue is split between owner and property manager
Apply management commissions correctly
Make one-off adjustments when exceptions are required
This flexibility ensures cancellation revenue is handled accurately—even when it doesn’t follow your standard fee rules.