Deposit Forfeit and Refund Controls (Cloud)

Deposit Forfeit and Refund Controls (Cloud)

The Financial section includes settings that control how deposited reservations are handled when canceled and provides additional security controls for large refunds and credits. These settings help properties manage deposit forfeitures while ensuring appropriate authorization for higher-value financial transactions.
Path: Management > Property Settings > Parameters > Financial



Deposit Forfeit Code

The Dep Forfeit Code setting determines which transaction code is used when a portion of a guest's deposit is retained after a reservation is canceled.
This transaction code is applied to the forfeited portion of the deposit and is used when processing cancellations for reservations that have an existing deposit.
The available transaction codes are configured in Management > Accounting Settings > Setup Code.
Info
By default, the Deposit Forfeit Code is typically configured to report as Room Revenue. As a result, when an advance deposit is forfeited, the retained amount is recognized as Room Revenue for reporting purposes.
This setting works together with the Dep Forfeit Amount setting to determine how deposited reservation cancellations are processed.

Deposit Forfeit Amount

The Dep Forfeit Amount setting defines the default amount retained by the property when a reservation with a deposit is canceled.
Visual Matrix uses this amount to calculate:
  1. The amount retained by the property.
  2. The amount refunded to the guest.
This setting applies to:
  1. Local reservations with deposits.
  2. Online reservations with locally managed deposits.
Info
The configured amount serves as the default forfeiture amount for reservation cancellations. When canceling a reservation directly in Visual Matrix, users can adjust the forfeiture amount during the cancellation process if needed.
For online reservations that are canceled through the online cancellation process, Visual Matrix automatically uses the configured forfeiture amount to calculate the portion of the deposit to retain and the portion to refund to the guest.

2nd Code For Refunds Over $ Amount

The 2nd Code For Refunds Over $ Amount setting provides an additional level of security for large refunds and credits.
When a refund or credit exceeds the configured amount, Visual Matrix requires approval from a second authorized user before the transaction can be completed.
Refunds and credits are typically restricted to supervisory users unless management override permissions have been granted. This setting adds an additional approval requirement for transactions that exceed the specified threshold.
The second approval is provided using another authorized user's ID.

Save Changes

After modifying any setting in the Financial section, click Save at the top of the page to store your changes. Unsaved changes will not be applied to the property configuration.



Still Need Help With This Topic?

Ask Yourself:
  1. Is the correct deposit forfeiture code configured?
  2. Does the default forfeiture amount match the property's cancellation policy?
  3. Is the refund approval threshold set appropriately for the property?
Support May Ask You:
  1. What Deposit Forfeit Code is currently configured?
  2. What default forfeiture amount is set?
  3. What refund threshold requires a second approval?
  4. Does the issue occur when canceling a deposited reservation or when posting a refund?
  1. Currency and Accounting Settings (Cloud)
  2. Financial Reporting Settings (Cloud)
  3. Reservation Cancellation Policies
  4. Property Settings - Parameters Overview

    • Related Articles

    • Financial Reporting Settings (Cloud)

      The Financial section includes reporting preferences that control how financial data is compared and displayed throughout Visual Matrix Cloud reports. These settings help properties align financial reporting with their budgeting practices, ...

    • 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 ...

    • 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. ...

    • Currency and Accounting Settings (Cloud)

      The Financial section includes settings that define the property's currency configuration and accounting structure. These settings help ensure financial information is displayed correctly throughout Visual Matrix Cloud and align with the property's ...

    • 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 ...