Define cancellation rules and collect advance deposits on bookings.
Overview
Hotels often require a deposit at booking time and charge a fee if guests cancel too late. This module lets you define cancellation policies once under Configuration, then attach them to individual bookings. On each booking you can also set a deposit percentage; the system calculates the deposit amount from estimated room revenue and extras.
Managers can turn a deposit into a customer invoice with one button, and track all deposit invoices under Finance → Deposits / Guarantees.
How It Works
A cancellation policy describes when free cancellation ends and what penalty applies afterward (none, a percentage of the stay, or a fixed amount). Policies can be tied to a specific property or left generic for reuse across hotels in the same company.
On a booking:
- Choose a cancellation policy so staff know the rules.
- Enter Deposit (%) – e.g. 25 for a quarter of the estimated total.
- The Deposit amount updates automatically when room prices and extras change.
- Use Create deposit invoice to bill the guest. The invoice links back to the booking and appears in the Deposits menu.
Only one deposit invoice is allowed per booking. The property must have a room revenue account and default taxes configured before invoicing.
Step-by-Step Guide
- Open Hotel → Configuration → Cancellation Policies and click New.
- Name the policy, set free-cancel hours before check-in, and choose penalty type (percent or fixed amount).
- Link the policy to a property or leave property empty for a company-wide template.
- On a booking, select the cancellation policy and enter the deposit percentage.
- Apply room rates so Estimated room revenue and Deposit amount are calculated.
- Click Create deposit invoice to generate the guest invoice (Hotel Manager access).
- Find all deposit invoices under Hotel → Finance → Deposits / Guarantees.
Fields Table
| Field Name | Description | Example |
|---|---|---|
Policy |
Name of the cancellation policy |
Flexible – 24h free cancel |
Property (policy) |
Optional hotel this policy applies to |
Grand Plaza Hotel |
Free cancel (hours before check-in) |
Hours before check-in when guest may cancel without penalty |
48 |
Penalty |
Type of charge after free-cancel window |
Percent of stay |
Penalty (%) |
Percentage of stay charged as penalty |
50 |
Fixed penalty |
Flat fee when penalty type is fixed amount |
100.00 |
Terms |
Full policy text for staff and guests |
50% charged if cancelled within 48 hours… |
Deposit (%) |
Percentage of estimated total due as advance payment |
30 |
Deposit amount |
Calculated amount to invoice as deposit |
450.00 |
Deposit invoice |
Linked customer invoice once created |
INV/2026/0042 |
Field Explanations
Policy
A short name reservations staff recognize – e.g. “Non-refundable” or “Standard 24h”.
Property (policy)
If set, the policy is meant for that hotel. Leave empty to reuse the same rules at any property in the company.
Free cancel (hours before check-in)
How many hours before the check-in date the guest can cancel without penalty. Based on a simplified midnight check-in model.
Penalty
- No penalty – guest owes nothing after free-cancel ends.
- Percent of stay – charge a % of room revenue.
- Fixed amount – charge a flat fee regardless of stay length.
Penalty (%)
Used when penalty type is percent. Must be between 0 and 100. Example: 100% means the full stay value.
Fixed penalty
Used when penalty type is fixed amount. One charge in the policy currency regardless of booking size.
Terms
Longer legal or marketing text copied into confirmations or guest communications.
Deposit (%)
What portion of the estimated total you want upfront. 0 means no deposit. Must be between 0 and 100.
Deposit amount
Automatically computed: (room lines × nights + extras) × deposit %. Updates when prices change.
Deposit invoice
After you create the deposit invoice, this field shows the linked accounting document. Cannot create a second deposit invoice for the same booking.
Tips
- Apply rates to the booking before creating a deposit invoice – otherwise the deposit amount may be zero.
- Create a few standard policies (Flexible, Moderate, Strict) and pick the right one per booking instead of typing terms each time.
- Use Finance → Deposits / Guarantees to reconcile all advance payments in one list.
Common Mistakes
- Deposit invoice without revenue account Set the room revenue account on the property first, or invoicing will fail with an error.
- Creating deposit twice Each booking allows only one deposit invoice. Credit or adjust the existing invoice instead of clicking create again.
- Wrong policy property A policy tied to Hotel A cannot be used on a booking for Hotel B unless the policy property is left empty.