How to charge cancellation fees


A guest cannot embark on his journey. Since cancellation fees have been agreed, but the accommodation invoice has already been paid, a corrected invoice must be issued. In our example the guest has to pay 90% of the original price, 10% will be refunded.


1) The paid, original invoice must be cancelled and the corrected invoice sent to the guest, since the accommodation is no longer needed.

2) In addition, you must create a new invoice (preferably both with the same date, e.g. today).

3) Create an extra item for this invoice. You should name this item something meaningful, e.g. with "Cancellation fees for booking XYZ in room ZYX" and rate it with a positive amount representing 90% of the original price.

4) Place the extra item on the new invoice. Send this invoice to the guest as well and pay back the amount equivalent to 10%.

5) The cash balance is correct and the costs have been charged correctly.

Tip: Many situations in which refunds or vouchers have to be shown can be solved using extra items. You can create one extra item for each specific case (also with negative amounts).