Determining cancellation fees in a cancellation policy

Your cancellation policy applies to any cancelled reservation within your administration. Edit your cancellation policy to determine the amount of the cancellation fee.

Go to 'Cancellation policy' in your administration settings menu. You can add several lines with a cancellation period counted in days before arrival, cancellation costs that are a percentage of the rent, and, optionally, a fixed amount of administration costs.

For example:
Cancelling 30 days before arrival, results in 30% of rent being due with an additional 5 euro administration fee.
Cancelling 10 days before arrival, results in 80% of rent being due with an additional 5 euro administration fee

You can set as many cancellation periods with associated percentages and fees as you need. Depending on the date that the reservation is cancelled, the appropriate line is applied.

Checkbox options

At the top of the screen, there are two checkbox options.

'Cancellation fees need to be included in settlements toward owners'
This means that any income from cancellation fees is considered rent that should be settled with the owner of the object where the cancelled reservation was placed.

'Include costs with 'Do not invoice' setting in cancellation costs percentage'
This means that any cost items that were initially not to be paid through BEX PMS, will be included in the calculation of the cancellation costs. This is useful if guests were supposed to pay the owner of the object directly, for example.
Read more: Cost setting 'Do not invoice'

Ledger accounts

Two ledger accounts need to be linked, one for the fixed administration costs, and one for the cancellation costs based on the rent.

Related settings in cost items

Whenever you create or edit a cost, you can determine how this cost relates to the cancellation policy. At the bottom of the 'invoicing' section in the cost settings, you’ll see 'policy for cancellation invoices' with three options:

  • Include in basis: The price of this cost item is part of the base amount that the cancellation policy percentage is applied to.

  • Copy as is: Regardless of the applicable percentage in the cancellation policy, 100% of the price of this cost will be charged through the cancellation fee.

  • Exclude: The price of this cost will not be part of the cancellation fee at all.