Refund Forfeited Advance Deposit After Cancellation (Cloud)
When a guest cancels a reservation, an advance deposit may be forfeited automatically depending on the reservation type—for example, with non-refundable bookings. In some cases, however, you may need to return that forfeited amount, such as when the cancellation policy is waived or an exception is granted. The process for refunding a forfeited deposit depends on whether the guest’s scheduled arrival date has already passed. This article explains both scenarios and includes an option, such as using the “Post Before C/I” feature.
If the arrival date has not passed
When the reservation’s arrival date is still in the future, you can refund a forfeited deposit by reinstating the reservation and creating an offset entry that can be refunded.
1. Reinstate the reservation
If the reservation is currently canceled, reinstate it first.
You cannot modify advance deposits on a reservation unless it is in Guaranteed Status. A reservation is considered guaranteed if it has a valid guarantee type on file (credit card, city ledger account, or an advance deposit).
2. Open Deposit Details
From the reservation, click Deposit Details to view all deposits and forfeits.
3. Post an Advance Deposit Prepaid
Post a new Advance Deposit Prepaid line for the amount you intend to refund.
This step is required because a forfeited deposit itself cannot be voided or refunded directly. Posting the prepaid deposit creates an offset entry that makes refunding possible.
4. Cancel the reservation again
When cancelling, the system will prompt you with the option to forfeit or refund the prepaid deposit.
5. Select Refund and process it using the same payment method as the original deposit (e.g., Visa, MasterCard, Amex).
If the arrival date has passed
When the arrival date is already in the past, you cannot reinstate the original reservation to process the refund. In this case, the refund must be handled through a temporary reservation.
1. Create a new reservation
Create a 1-night reservation for the same guest. The rate plan and room type do not matter, since this reservation is only used to process the refund.
2. Open Deposit Details
From the new reservation, click Deposit Details.
3. Post an Advance Deposit Prepaid
Post an Advance Deposit Prepaid line for the amount you intend to refund. As in the previous scenario, this entry is required because the forfeited deposit itself cannot be refunded directly.
4. Cancel the reservation you just created.
When cancelling, the system will prompt you with the option to forfeit or refund the prepaid deposit.
5. Select Refund and process it using the same payment method as the original deposit (e.g., Visa, MasterCard, Amex).
Enable the "Post Before C/I" feature
The Post Before C/I option allows staff to open and work with a folio even if the guest has not checked in. With this feature, folios can be accessed regardless of the reservation status—Guaranteed, In-House, Checked-Out, or Cancelled. Use it with caution, as it may lead to discrepancies in ledger balances if not managed properly. Learn more...
Still Need Help With This Topic?
Ask Yourself:
- Is the arrival date for the cancelled reservation in the future, or has it passed?
- Do you know the original method of payment so the refund can match it?
- Do you have the “Post Before C/I” feature enabled?
Support May Ask You:
- What is the reservation number/guest name?
- What is the arrival date of the cancelled reservation?
- Was the reservation reinstated?
- What deposit amount was forfeited, and what amount do you intend to refund?
- What method of payment was used originally, and what method will you use for the refund?
- Is the “Post Before C/I” feature enabled on your property?
Related Articles
Cancel Guest Reservation with Advance Deposit (Cloud)
When a reservation is canceled, whether by the guest or property, the system needs to follow your cancellation policy and deposit rules. If the cancellation is outside the allowed policy period, the system will prompt you to confirm and to provide a ...Setup Default Advance Deposit Forfeit Amount (Cloud)
This setup instructs Visual Matrix on handling cancellations for reservations with an existing deposit, specifying the amount to forfeit (amount retained) and the amount to refund to the guest. It applies to both local reservation cancellations with ...Refund Guest Advance Deposit (Cloud) 🎥
? Watch Video Refunding an advance deposit helps correct mistakes or handle guest cancellations. In Visual Matrix Cloud, refunds are permitted only before check-in, because after check-in the deposit moves to the folio and affects ledger entries. ...Refund Group Advance Deposit (Cloud) 🎥
? Watch Video A Group Advance Deposit may need to be refunded in cases such as group cancellation, overpayment, or contract adjustment. This article walks you through the process of refunding a group advance deposit from the Group Master Folio. ...Post Guest Advance Deposit (Cloud) 🎥
? Watch Video Advance deposits play a key role in hotel operations by securing reservations, ensuring payment commitment, and maintaining accurate financial records. In Visual Matrix Cloud, you can post an advance deposit directly from the ...