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Cancellation Terms

This page describes the Cancellation Terms setting in the Hotel module.

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Cancellation Terms allow you to specify how much of the value of a Reservation will be refunded when it is cancelled. You can specify that the value of a refund can vary, depending on when the cancellation occurs (i.e. on the number of days in advance of the Check In Date).

If you have issued a Down Payment Invoice or a full Invoice for a Reservation in advance of the Check In Date, you will need to credit that Invoice if the Reservation is cancelled. You should do this in the usual way, by opening the Invoice and selecting 'Credit Note' from the Create menu. If you have Cancellation Terms in force, they will be used when calculating the value of the Credit Note.

After defining Cancellation Terms using the setting of the same name, use the Cancellation Terms field on the 'Terms' card in the Hotel Settings setting to specify the Cancellation Term that is to be used by default, and the Cancel. Terms field on the 'Defaults Online' card in the same setting to specify the Cancellation Term that is to be used by default with online Customers (Customers belonging to the Web Cust. Cat. specified on the same card). If necessary you can also use the Cancel. Terms field in the individual records in the Customer Terms setting to specify the Cancellation Terms that are to be used with individual Customers.

Enter a Code and a Comment and then use the matrix to specify the percentage of the Invoice value that will be credited, depending on when you issue the Credit Note relative to the Check In Date. In the example above, a Credit Note that you issue one day before the Check In Date will by default refund 10% of the Invoice value, a Credit Note issued two or three days before the Check In Date will refund 25% and so on. You will be able to overwrite the value of an individual Credit Note before marking it as OK. A Credit Note issued more than five days or more before the Check In Date will refund the full value. Be sure to list the number of days in ascending order as shown in the illustration.

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