3b - Cancellations - How to ensure accuracy

Addresses the process of accounting for cancellations

Updated this week

How Cancellations are automated in VRPlatform

When a booking is made in your Property Management System, an invoice is created in QBO on a future date based on check-in or check-out (your automation setting determines which one). If a cancellation happens between the booking date and the guest check-in, VRPlatform will typically void the invoice in QBO.

If the invoice was fully refunded to the guest, there is typically nothing more to do, especially if the stay was booked through airbnb. For non-airbnb stays where $ was received and then refunded to the guest via a separate transaction, a review is typically required to insure that cash transactions are properly reflected in QBO.

Steps to Troubleshoot a Cancelled Reservation

  • Did the reservation cancellation result in a full refund to the guest?

    • YES -

      • Locate the reservation in QBO

        • If the reservation invoice is voided, make sure the customer balance in QBO is $0.

        • If the reservation invoice is not voided:

          • Locate the Reservation in VRPlatform via the screen below:

          • Resend the reservation to QBO. If for some reason the invoice doesn't void in QBO, manually void the invoice in QBO.

      • NO -

        • Fully Cancelled (there is a partial retained amount from the stay) -

          • Locate the reservation invoice in QBO

            • Make a copy of the voided invoice, remove all line items and add or replace them with a single "cancellation fee" line item.

              Please be aware: If you don't make a copy of the voided invoice and instead manually alter the voided invoice, VRPlatform will override your manual changes when it refreshes your invoices every 24 hours or when you rerun the invoice automation.

              • Assign the proper class and input an amount equal to the amount forfeited by the guest and retained in the company bank account.

              • Make sure the date of the invoice is the cancellation date

          • Confirm that there is a payment posted in QBO to the customer for the net payout amount (total paid - less any refund) and make sure the customer balance is $0

Owner Statement Implications

When you have accounted for a cancellation correctly, you should see the following on your owner statement:

  1. Fully refunded stay - no presentation on the owner statement

  2. Partially refunded stay or no refund - you should see that reservation info (even if the stay was scheduled for another month) with the "net amount" as revenue.

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