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Allocate cancellation revenue to PM

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How to Manually Allocate Cancellation Revenue to the Property Manager

In some cases, part or all of cancellation revenue should be paid to the property manager instead of the owner—but not for every cancelled reservation. In these situations, you can create a cancellation revenue fee that is applied manually only when needed.

This article explains how to set up and use a manual cancellation revenue fee in VRTrust.

When to Use This Workflow

Use this approach when:

  • Cancellation revenue usually belongs to the owner

  • But occasionally part or all of it should go to the property manager

  • You do not want this allocation to happen automatically on every cancellation

If cancellation revenue should always be allocated (or split) automatically, use the standard Cancellation Fee – PM setup instead.

1. Create a Manual Cancellation Revenue Fee

  1. Go to Fees & Commissions

  2. Select Other Fees

  3. Click Add Fee → Other Fee

  4. Name the fee:
    ​Cancellation Revenue – PM

Important setup notes:

  • Configure the revenue and expense accounts as required for PM allocation

  • Do not apply this fee to listings

Leaving the fee unapplied ensures it does not automatically trigger for every cancelled reservation.

Refer to the cancellation revenue setup video for step-by-step guidance on creating this fee.

2. Record Cancellation Revenue on the Reservation

When a reservation is cancelled and funds are retained:

  1. Open the cancelled reservation

  2. Add an Adjustment for the amount of funds retained and not refunded

This records the cancellation revenue, which by default is allocated to the owner.

3. Manually Allocate Cancellation Revenue to the Property Manager

If part of the retained cancellation revenue should go to the property manager:

  1. In the reservation drawer, go to Fees & Commissions

  2. Add an Adjustment

  3. Select Cancellation Revenue – PM

  4. Enter a description such as:
    ​Cancellation Fee Adjustment

  5. Enter the amount to allocate to the property manager

    • Example: $50

This adjustment:

  • Removes $50 from the owner’s cancellation revenue

  • Allocates $50 to the property manager instead

4. Adjust Management Commission (If Needed)

If a management commission was automatically applied and should be reduced or removed:

  • Add an additional adjustment to decrease the management commission

  • This ensures the final allocation reflects the intended outcome

Summary

Using a manual Cancellation Revenue – PM fee allows you to:

  • Handle one-off cancellation revenue exceptions

  • Allocate revenue to the property manager only when appropriate

  • Avoid changing default cancellation behavior

  • Maintain accurate owner statements and PM income

This approach provides flexibility without introducing automatic behavior you don’t want applied to every cancellation.

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