If a reservation with a deposit payment is cancelled, the reservation account must be balanced and closed. You can either refund the deposit or process the deposit according the hotel’s cancellation and no-show policy.
Change the reservation status to S – cancelled. A query will ask you how to proceed with the deposit:
•Cancel deposit invoice
Return the deposit to the client.
•Cancel deposit invoice using different payment type
Return the deposit to the client and choose a payment type that is different from the one that the deposit was originally made with.
•Offset deposit
Use the deposit to settle no-show or cancellation charges.
•Do not cancel deposit invoice
Select this option for non-refundable deposits.
Figure 41: Deposit options
The selected option applies to all deposits that have not yet been reposted to a guest account.