Cancel and refund
Set the forfeiture rules, cancel a booking through the wizard (credit notes, forfeiture, charges) and pay the refund on its own or in a run.
09. Cancel and refund
When a buyer withdraws, the booking is cancelled through a four-step wizard: the issued demands are reversed with credit notes, the forfeiture and any charges are posted against the buyer's ledger by the rule in force, and whatever remains of the money received becomes a pending refund. The rule itself is set beforehand, for the organization or per project. The sales head cancels; the accountant refunds.
Before you start
07. Collect: the demands and receipts on the booking are what the wizard reverses and refunds. The forfeiture rule is an effective-dated organization or project setting; set it before the first cancellation, since the wizard suggests its figures from it.
In this chapter
- Set the forfeiture rules for cancellations: Set what a cancellation forfeits by default, for the organization or a project.
- Cancel a booking: Run the four-step wizard: reversed demands, forfeiture, charges, refund.
- Refund a cancelled booking: Pay the refund on its own or in a Refunds payout run.
- Cancel booking: The wizard and what each step shows.
- Payout runs: Where a Refunds payout run is drafted.
- Booking cancellation, forfeiture and refund: Credit notes, forfeiture, charges and the refund that results.
- Vouchers, reversals and system vouchers: The reversals and system vouchers a cancellation posts.
- Revenue recognition: policy, point in time vs over time, and revenue runs: What a cancellation does to revenue already recognised.
What comes next
The unit and its parking slots return to stock and the opportunity closes as lost; a new sale starts again in 06. Sell. If revenue had already been recognised on the booking, the next revenue run picks up the reversal: 10. Accounting, reports and revenue recognition.
Related
- Set the forfeiture rules for cancellationsHow-to
Set what a booking cancellation forfeits by default (a percentage of the agreed total or of the amount received, with optional GST and default charges), for the whole organization or for one project, from a date, on Settings > Organization.
- Cancel a bookingHow-to
Cancel a booking with the four-step cancellation wizard: see which demands are reversed, set the forfeiture and charges the rule suggests, set the refund, and confirm, which releases the unit and parking slots, marks the opportunity Lost and posts every entry in one go.
- Refund a cancelled bookingHow-to
Pay the refund a booking cancellation created: clear the pending refund payout on its own from the payment page, or collect several refunds in a Refunds payout run that is approved, exported as a bank file and cleared with the UTRs.
- Cancel bookingScreen
The four-step wizard that cancels a booking: it shows the demands and receipts that will be reversed, suggests the forfeiture and charges from the rule in force, sets the refund and posts everything in one go, releasing the unit and parking and marking the opportunity lost.
- Payout runsScreen
Every payout run of the chosen books, the dialog that drafts a new run of member benefits, commissions or refunds, and the scheduled rules that draft runs automatically.
- Booking cancellation, forfeiture and refundConcept
Cancelling a booking reverses its demands with credit notes, posts the forfeiture and any charges against the buyer's ledger by the rule in force, creates the refund as a pending payout for the credit that is left, and frees the unit and parking; with nothing billed or received it only frees them.
- Vouchers, reversals and system vouchersConcept
A voucher is the only way an amount enters the ledger: a dated header with balanced debit and credit lines, editable as a Draft, numbered and frozen when posted, corrected only by a mirrored reversal; demands, payments, commissions, benefit accruals, cancellations, revenue runs and the year-end close post their own system vouchers the same way.
- Revenue recognition: policy, point in time vs over time, and revenue runsConcept
Each set of books carries an effective-dated revenue policy (framework, method, possession trigger, cost and brokerage treatments, judgement areas) chosen by the CA; a revenue run is the period close that computes every booking's and member offer's progress under it, recognises the catch-up revenue, cost of sales and brokerage, and posts the journals.