Learn how to process city tax refunds for canceled or no-show bookings where the reservation was fully prepaid, including city tax. The total booking amount is charged, but the city tax must be returned
Process:
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Locate the Payment: Navigate to the booking and locate the payment record. This might be a single payment covering the entire stay (room + city tax) or separate payments for the room and city tax.
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Initiate Refund:
- Single Payment (Room + City Tax): Click the three dots on the payment record and select "Refund." In the refund modal, enter only the city tax amount to be refunded.
- Separate City Tax Payment: Click the three dots on the city tax payment record and select "Refund." In the refund modal, enter the full city tax amount to be refunded.
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Cancel Proforma (if separate): If the city tax was on a separate proforma, finalize the one for the room after processing the refund. This ensures the payment and proforma amounts match.
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Separate and Cancel Proforma (if combined): If the city tax was included in a single proforma with the room, you must separate them before canceling the city tax proforma.
- Click the three dots on the combined proforma and select "Separate City Tax." This will create two separate proformas: one for the room/extras and one for the city tax.
- After processing the city tax refund, click the three dots on the city tax proforma and select "Cancel." Ensure you have finalized the room proforma before canceling the city tax proforma.
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Reconcile Proforma and Payment: After the refund and any proforma adjustments, the room proforma amount should match the payment amount.
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Troubleshooting Mismatched Amounts: If the room proforma and payment amounts do not match after the refund, navigate to the "See billings" section (within the billing area). Click "Recalculate" (found in the top right corner) to refresh the billing information and resolve any discrepancies.
Important Notes:
- Ensure you refund the correct amount of city tax.
- Separate proformas before canceling the city tax proforma if they were initially combined.
- Always finalize the room proforma before canceling the city tax proforma.
- Use the "Recalculate" function to resolve any discrepancies between proforma and payment amounts after the refund.