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6.2. Working with Refunds / Credit Notes

Managing Credits / Refunds in ResRequest

 

There are several scenarios that could lead to a credit/refund situation:

  1. The Booking is Overpaid – meaning there is an actual credit amount sitting on the booking (because the client overpaid, cancelled outside the cancellation period or the itinerary changed). The credit already exists on the booking and must be processed.
  2. The Booking is Part or Fully Paid and an amount (part or full) needs to be credited / refunded. A revenue entry must be created, and then the credit processed.
  3. The Booking cancels and must be credited / refunded. Cancellation procedures must be followed, which will create a revenue entry, and then the credit must be processed.

 

There are 3 ways in which a booking can be Credited / Refunded:

  1. You can Transfer the credit to another booking (using Res Transfer and creating a ”– payment” against the one and a “+ payment” against the other).
  2. You can issue a Refund (using any method of payment and creating a “– payment”)
  3. You can issue a Credit Note (which is a financial document). In order for this to happen the booking must be Tax Invoiced – you void the invoice and choose “Credit Note” as the format.

 

To Credit / Refund an Overpaid Booking:

  1. The booking will have a negative (credit) balance.
  2. Create a negative payment –using whatever payment method is relevant (e.g. Res Transfer if you are moving the money from one booking to another, or EFT if you are going to send the money to the Agent etc.

 

To Credit / Refund a Fully / Part Paid Booking:

Example 1: 2 nights have been booked and fully paid, but you wish to credit 1 night. You don’t want to amend the existing booking because you wish to have the original information for statistical / financial reasons.

  1. Add a negative accommodation item. This will create a negative amount owing on the booking
  2. Refund / Credit as above.

 

Example 2: 3 nights have been booked and fully paid, but you wish to credit an amount of money. You don’t want to amend the existing booking because you wish to have the original information for statistical / financial reasons.

  1. Add a negative extra (called Credit – this should be property specific if you need to account for the revenue at the property; and not property specific if you don’t). This will create a negative amount owing on the booking
  2. Refund / Credit as above.

 

 

To transfer credit from one booking to another:

On a Cancelled Booking:

  1. Cancel the booking as per Cancellation recommendations. If there is a payment on the booking – there will now be a negative amount owed on the booking.
  2. You can send the Proforma or Res Summary showing this negative amount owed to the Agent as “proof” of their credit.
  3. You can then do a Res Transfer to transfer this credit to another booking.

 

On a Confirmed / Provisional Booking credited erroneously:

  1. Do a Res Transfer to transfer this credit (or part thereof) to another booking.
  2. You can send the Proforma of each Reservation to the Payer to confirm the transfer.

 

To issue a Cash Refund:

  1. The booking should be fully paid and invoiced.
  2. Add an Extra called Credit – this should be property specific if you need to account for the revenue at the property; and not property specific if you don’t. Put in a negative amount (e.g. -120).
  3. It will tell you that it needs to be invoiced to a folio – click on the search button and Invoice to original invoice contact.
  4. This will create a new folio with a negative amount. Click on the Folio and “Invoice”. It will tell you that there is a negative amount – click “OK”.
  5. It will generate a CREDIT NOTE.

 

To create a Credit Note (official Financial Document):

  1. The booking should be fully paid and invoiced.
  2. Click on the drop-down arrow on the Invoice to be credited – and select “Void Invoice”
  3. You have 2 Options: “Void“ or “Reverse with Credit Note”
  4. Once you have confirmed – you can open the voided Invoice, and it will present as a Credit Note.

 

To reduce the bednight count when refunding:

If you create a negative value folio, it will be titled as a credit note. e.g. If you have invoiced in full then it emerges that you have to give a credit for 1 night, you can create an itinerary item for a negative number of rooms on the night that you are crediting. This has the dual effect of creating a credit note and reducing your bed night count. 

 

Situation

DOCUMENT

Implications

Procedure

Generate a normal client invoice

TAX INVOICE

  • Financial entries are generated

Generate a new invoice (from the reservation or from the Folio / Invoice report)

Void the invoice without having to send anything to the client.

 

Example: there was an error on the invoice but it has not yet been sent to the client.

VOID INVOICE

  • Document does not show negative values.
  • Document title is ‘Void Invoice’.
  • Financial entries are generated to contra those of the Tax Invoice.

Void an existing invoice (from the reservation or from the Folio / Invoice report).

Client has received an invoice, which now needs to be reversed. Reversal needs to be an exact contra of the invoice.

 

Example: there was an error on the invoice and the invoice will subsequently be re-invoiced.

CREDIT NOTE

  • Financial entries are generated to contra those of the Tax Invoice.
  • Document title is ‘Credit note’.
  • Document shows negative values.

Generate a credit note from an existing invoice (from the reservation or from the Folio / Invoice report)

Client has been correctly invoiced but a credit is now required.

 

Example: a full credit is to be granted in response to a guest complaint.

CREDIT NOTE

  • Bed nights are reversed. (You can create a credit without affecting bed nights by entering 0 pax and a negative override per stay or per unit. However, room nights will be affected.)
  • Credits can be generated for accommodation and / or extras.
  • An independent set of financial transactions is generated.
  • Document title is ‘Credit Note’.
  • Create an itinerary item for a negative number of nights. (The new itinerary item should be added to the reservation on which the original invoice was generated.)
  • Generate a new ‘invoice’ (which is titled 'Credit note').
  

 

 

 

 

 

 

Knowledge Tags
Credit  /  Refund  /  Credit Note  /  Refunds  /  Cancellation Policy  /  Cancellation  /  Overpayment  / 

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