A guide to creating Cancellation Policies in RMS.
Overview
Cancellation Policies can be configured across multiple areas, including Rate Type, Derived Rate Type, Rate Type Property Rules, Rate Tables, and Rate Periods. Alternatively, a policy can be selected directly within a reservation.
A Cancellation Policy determines the rules applied to a reservation when the Reservation Status is changed to 'Cancelled' in RMS.
✎ Please Note: RMS is highly configurable. Some Terminology, User Access & Permissions, Images, Labels, and Functions used in these articles may differ from your setup. CLICK HERE to find out more.
Cancellation Policy Hierarchy
The Cancellation Policy applied to the reservation will be determined by the following hierarchy:
- Selecting or changing the cancellation policy on a reservation will ignore any policy selected on any rate setup.
- A cancellation policy set on a Derived Rate will only apply if no cancellation policy is selected on the Rate Type or Derived Rate Type used as the 'Derived From'.
- Selecting or changing the cancellation policy on a reservation will ignore any policy selected on any rate setup.
- A cancellation policy set on a Derived Rate will only apply if no cancellation policy is selected on the Rate Type or Derived Rate Type used as the 'Derived From'.
★ Tip: A 'Derived Derived' rate is a rate using a 'Derived From' rate that is also a Derived Rate.
⚠ Warning: The Cancellation Policy applied at the time the reservation is created will not automatically change if the Rate Type is updated later. If the new Rate Type has a different Cancellation Policy, the original policy will remain on the reservation until it is manually updated.
⚠ Important: A Sundry Charge must be configured for Cancellation Policy charges to be processed. Set a property-wide default in Setup > Accounting > Accounting Options > Account Defaults, or select a Sundry per row in the Amount to Charge table on each Cancellation Policy Rule (see step 8 below). Without a Sundry Charge in at least one of these locations, the system will not apply charges when a reservation is cancelled.
Guide
In the side menu of RMS, go to Setup > Lookup Tables > Cancellation Policies.
- Select Add.
- Enter a Short Description.
Enter a Code (Optional).
Enter a Description (Optional). - Select 'Save'.
- Go to the Rules tab.
- Select the 'Add'.
- Select a Property
- Enter the Property's Cancellation Policy Description.
Select 'Make Cancellation Note Mandatory' (Optional).
Select 'Void tariff charges on cancellation of reservation' (Optional).
If this option is selected, and Accommodation rates which have created on the account will be automatically voided. - Set the Cancellation time frame and Amount to Charge for each row.
Each row includes a Sundry column. The default value (Account Options) uses the property-wide Sundry Charge set in Accounting Options > Account Defaults. A different Sundry Charge can be selected per row if required.
For the charge amount, select one of: Amt From Sundry (charges the amount of the selected Sundry), First X Nights (charges the equivalent of a set number of nights), or enter an Amount / % of Total Tariff. - Select Save/Exit.
✎ Please note: The option 'Make Cancellation Note Mandatory' will require Users to select a Cancellation Reason and enter a cancellation note when cancelling a reservation.
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