This tutorial will walk you through the process on how to post a refund to a guest's folio as a note for accounting purposes.
Note: The steps described below do not process any refund to the guest's credit card.
If you want to refund a transaction/payment made through a connected payment gateway, you will need to follow the steps in our article here.
When processing a credit card refund payment using the "Capture/Note Existing Refund" as the refund type, it will show in the guest folio the credit card type, last 4 digits of the credit card and a note stating"Refund Recorded" along with the refund amount in the credit column.
Please note that adding a refund payment this way does not actually refund the card as the transaction did not go through the payment processor. You are only recording the transaction on Myfrontdesk to ensure that the guest folio is accurate. It is useful for accounting purposes, to keep guests' balances and reports accurate.
Important: It is not possible to delete a refund record from the folio, so be careful adding it and always check an amount of refund entered.
In order to add refund as a record to the guest's folio, please do the following:
1. Navigate to the reservation and click on the Folio tab
2. Open the folio to add refund to
3. Click 'Add/Refund Payment' button and select 'Refund Payment'
4. In the new window select the 'Payment Type': it may be a credit card, cash, bank transfer and all the customed payments added to the Payment Options page.
5. Assign to: if the refund is made to group booking with several guests, you would need to select to which guest the refund will be applied to, which helps to track balances of the guests in reports.
6. Select folio to add refund to
7. Refund Type: if Payment Processing is not enabled, 'Capture/Note Existing Refund' will be selected by default.
8. Refund Amount: enter any refund amount
9. Date: enter the refund date (maybe in future or past)
10. Add a note (optional)
NOTE: We always suggest including a note with every payment refund for tracking purposes.
11. Click 'Add Refund' to add refund record to the system or 'Cancel' to deny the action.
You can allocate the refund to specific revenue item if you have this functionality enabled.
Learn more about payment and refund allocation in our Knowledge Base: Payment Allocation
Smart Date is a feature that indicates payment or refunds getting added that should be time stamped for the current time. If a user is marking a payment for sometime in the past, it is possible to uncheck the Smart Date box and choose a date in the past.
- The date of processed payment can only be the current date and can't be set to the past or future even if Smart Date option is off
- This functionality does not work with cash payments
The refund will now show up in the folio as a red number in parenthesis under 'Credit' section
I have no Payment Processing enabled in Myfrontdesk. How can I send refund to the guest's credit card?
You would need to use external payment system (POS, terminal, online-banking, gateway not connected to Myfrontdesk etc.) to process the refund to a credit card and after the refund is processed you may add a record of a refund made to guest's folio.
If you would like to use Myfrontdesk to process payments and refunds, check if we support gateway in your country and contact us at email@example.com, we'll be glad to assist you with further steps.
I have added refund by mistake. Can I delete it from Folio?
No, it's not possible to delete refund record.
If you have added refund by mistake, you may correct the guest's balance by adding the payment to the reservation.
How can I limit access for my staff to add refunds?
You may edit the permissions for your staff role:
just disable the permission called ' Add Refund' for the needed role. To learn more about permissions please refer to the article here.