Check out a Room/Folio with a Balance
When you try to check out a guest and see that the folio still has a balance, it’s important to first identify whether it’s a debit balance (the guest owes money) or a credit balance (the guest has overpaid). Once you know the type, you can take the right action — such as collecting payment, posting a refund, or adjusting a charge — to bring the balance to zero and complete the checkout.
What is the type of balance: Credit or Debit
Start by checking the Balance field at the top of the folio:
- A positive amount (Debit) means the guest owes money — the hotel is due payment.
- A negative amount (Credit) means the guest has overpaid — the hotel owes a refund to the guest.
Once you know whether the balance is debit or credit, follow the corresponding steps below to clear it.
If the Balance Is a Debit (Guest Owes Money)
A Debit Balance means the guest still owes money to the property.
This can happen for several reasons:
- An incidental charge was added after the last payment.
- The guest extended their stay, and the new night wasn’t paid for yet.
- The method of payment isn’t correctly set up, or an authorization hasn’t been captured.
Depending on the situation:
- If the payment method is Credit Card (with authorization) or City Ledger, the balance doesn’t need to be settled manually — it will be charged or posted automatically when checking out.
- If the method of payment is Cash or Check, post the remaining payment manually.
- If the debit is caused by an incorrect or duplicate charge, void or adjust the item before checkout.
The folio balance must be $0.00 before checkout can be completed.
If the method of payment is Credit Card (with authorization) or City Ledger, you do not need to settle the balance manually — the system will automatically apply the charge or transfer during checkout.
If the method of payment is Credit Card (with authorization) or City Ledger, you do not need to settle the balance manually — the system will automatically apply the charge or transfer during checkout.
If the Balance Is a Credit (Guest Overpaid)
A Credit Balance means the guest has paid more than they owe, or a transaction reduced their total after payment was made.
This can occur when:
- The guest checked out early, but the room and tax were already posted for the remaining nights.
- A deposit was posted before arrival, but not fully applied.
- A charge was voided or adjusted after payment.
To resolve the balance:
- Post a refund using the same payment method as the original transaction.
- If the credit is due to a posting error, correct the item to rebalance the folio.
- Once the balance reaches $0.00, proceed with checkout.
Refunds should always be processed to the same payment type used for the original payment (card, cash, or City Ledger).
You can void or override a credit card payment as long as it hasn’t been settled or the night audit hasn’t been completed. However, if your property uses the Credit Card Capture function, these actions are not available once the payment has been captured.
Advance Deposits cannot be voided after the reservation is checked in — they must be refunded instead.
Unsettled Payment: Failed or Missing Credit Card Authorization
If a guest departs without settling their balance, or if the credit card authorization failed or was never completed, you’ll need to decide whether the payment can still be recovered.
The system offers multiple ways to handle this situation — all of which are tracked and reported. Each property should follow its internal policy for handling unpaid balances.
If you’re unsure which method to use, consult your management or contact the Visual Matrix Product Support Team before proceeding.
If you believe the payment will be received later:
- Post a Misc Charge Adjustment (MA) for the balance and check out the room.
- When payment is received, return to the folio, void the adjustment, and post the correct payment.
- Or, post a Db payment to a temporary City Ledger account to hold the balance.
- Later, post the payment directly in Accounting > City Ledger > Account > Payments, or void the Db entry and post the final payment method.
If you believe the payment will not be received:
- Void all charges on the folio one by one, then check out the room.
- The checkbox at the end of a line does not void the transaction.
- To void an item, highlight the line and click Void from the toolbox (Cloud) or top-left (Desktop).
- Or, post adjustments for each charge instead of voiding:
- Use Room Charge Adjustment for room revenue, Misc Adj for miscellaneous revenue, etc.
Still need help with this topic?
Ask Yourself:
- Did I confirm whether the balance is a Debit or a Credit?
- Have I checked the method of payment for existing authorizations?
- Are all sub-folios at a zero balance?
Support May Ask You:
- What room and folio letter are you trying to check out?
- What type of balance (positive or negative) is shown?
- What actions have you already taken (payment, refund, adjustment)?
- Was any error displayed during checkout?
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