Post a Credit Card Refund on a Folio (Cloud)

Refunds should match the original payment method for accuracy and transparency. If the initial payment was made by credit card, the refund should also be processed through the same credit card for consistency and easy tracking, ensuring a streamlined and organized financial process in compliance with best practices.

When posting a refund in a hotel's folio system, it's vital to grasp its impact on the folio's balance. Folios contain both Debit entries (like room charges, taxes, and extras) and Credit entries (including payments and adjustments) and aim to maintain a zero balance. Refunds act as Debit adjustments, canceling out previous payments. To balance the folio, a corresponding Credit adjustment is needed to offset the initial Debit entry, which could include room charges or other expenses. 

This dual adjustment ensures a balanced folio, accurately reflecting the guest's financial transactions, upholding financial accuracy and transparency in hotel accounting.Path: Front Office > Cashiering > Guest Account > In-House Guests > Double-Click on the Guest and Click "View"

1. Check the folio balance that might give you the amount to refund.

2. Review the folio details for an explanation of the balance. In the provided example, the payment posted exceeds the room charge.

3. Using "Detail Posting", select the credit code of the original method of payment.

4. Enter the amount to refund.

5. Click "Save".

6. Confirm the amount and the credit card number and click on "Credit" and "OK".

7. The refund is posted and the balance is back at $0.00.

If the credit card payment remains unsettled, you can override it without requiring a refund, which avoids incurring extra transaction fees from your payment processor.

Posting the adjustment before the refund ensures accurate tax calculations and precise refund amounts. This sequence maintains financial accuracy and prevents discrepancies in accounting records.

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