Reservation Cancellation and Cancellation Fees 

Overview: It is important to consider whether you are required to pay sales tax on cancellation fees. By default, Point-of-Rental will use the Other Field to capture any cancellation fees that are based on a Fixed Fee or Paid Amount. The Other Field is a non-taxable field. If your cancellation fee is taxable you will need to create a reservation cancellation fee item. Percentage fees simply discount each line item accordingly reducing the amount due and do not capture in the Other Field. From File Maintenance - Item File add a new item. The only requirements are that the KEY must be RESVCANCEL and it must be a Sales Item. You can set the item name, fixed price, non-taxable, etc...

If the item RESVCANCEL exists in your inventory, the system will add this item to the contract with the appropriate cancellation fee instead of using the Other Field in the contract.

Canceling a reservation is a simple task; from the Reservation Tab in Day-at-a-Glance you can right-click any reservation and choose Void Reservation from the menu, or from the Counter System Menu you can choose Close Contract.

Once you select Void Reservation, you will be asked the reason for voiding the contract. You can select from the drop-down menu the reason. If you do not want to cancel the reservation, select Cancel. 

     Note: If you want to add more reasons to the drop-down menu. Go to Program Menu>Configurations>System Configurations>Transaction Configurations Transaction Void Reason.

When canceling a reservation, you will be given three options for charging a cancellation fee.

Fixed Fee:      You can enter any amount you want to charge for the cancellation. If you are not charging a cancellation fee then enter zero in the box.

Paid Amount: This is the amount the customer has already paid.

Percentage:   Percentage of the contract total. If your cancellation policy is a 25% fee enter 25.

Fixed Fee (No RESVCANCEL): Cancellation Fee is captured in the Other Field. 

    Note:  Once you have selected a method of the status will change from yellow to red returning the items back in to inventory. If any money was paid on the reservation, it will show as a negative dollar amount in the due column. This is to refunded back to the customer.

Fixed Fee example: Cancellation Fee is captured using the RESVCANCEL item.

Paid Amount example: Cancellation Fee is captured using the RESVCANCEL item. Shows amount cancelled plus tax in paid section

Percentage example: Cancellation fee is 25%. Note all rental items are discounted by 75% effectively charging the customer 25% of the original rental.