Once Smart Policies are configured, Cloudbeds PMS follows the applicable guarantee, payment, cancellation, and no-show rules for eligible reservations. Depending on the connected payment gateway and the reservation's automation status, Cloudbeds can also process scheduled payments and other eligible financial actions.
This article explains how Smart Policies behave throughout the reservation lifecycle, including policy assignment, reservation modifications, scheduled payments, manual financial actions, and situations that require staff intervention.
Looking for cancellation and no-show fee processing? For fee calculations, automatic folio posting, applicable taxes and fees, overrides, payment processing, and reporting, see How Smart Policies Automatically Post Cancellation and No-Show Fees in Cloudbeds PMS.
| Purpose | Understand how Smart Policies affect reservations, scheduled payments, reservation changes, and manual financial actions. |
| Best for | Front desk staff, property administrators, general managers, owners, and night audit teams. |
| Use this when | Managing a reservation with Smart Policies, modifying reservation charges, reviewing scheduled payments, or deciding whether to disable automation. |
| Requirements | Smart Policies must be enabled for the property and assigned to the reservation. Certain actions require specific role permissions. Payment automation also depends on the connected payment gateway. |
| Expected result | Understand which financial actions Cloudbeds handles automatically, when scheduled payments change, and when staff must complete payments or refunds manually. |
| Limitations | A reservation's assigned Smart Policy cannot be replaced after creation. If automation is turned off, it cannot be turned back on for that reservation. Availability may vary by property. |
Smart Policies availability: Smart Policies are available to eligible properties. Availability may vary by property and enabled feature set.
In this article
- How Smart Policies apply to reservations
- How payment automation works
- How reservation changes affect scheduled payments
- Manual payments and turning off Smart Policy
- Cancellations and no-shows
- Best practices for daily operations
How Smart Policies apply to reservations
When a reservation is created, Cloudbeds determines which Smart Policy applies based on the selected rate plan, stay dates, and any active Smart Policy Exceptions.
The resolved Smart Policy is locked when the reservation is created. It remains assigned to that reservation even if the reservation is later modified or the original policy configuration changes.
- The assigned Smart Policy cannot be replaced with a different policy after reservation creation.
- Moving the reservation to another room or rate plan does not replace its assigned Smart Policy.
- Authorized staff can turn Smart Policy automation off for an individual reservation, but doing so does not assign another policy.
How Smart Policy Exceptions affect reservations
Smart Policy Exceptions allow properties to override the standard Smart Policy assigned to a rate plan or Base Rate for specific dates.
When determining the applicable policy, Cloudbeds:
- Evaluates each night of the stay, beginning with the check-in date and excluding the checkout date.
- Identifies the first night that matches an active Smart Policy Exception.
- Applies the policy associated with that first matching exception to the entire reservation.
- Uses the standard Smart Policy assigned to the rate plan or Base Rate if no exception applies.
Once the reservation is created, its resolved policy remains locked. Updating, disabling, or deleting the original exception does not change the policy already assigned to that reservation.
To learn how to configure exceptions, see Use Smart Policy Exceptions to Override Cancellation Policies for Specific Dates.
How payment automation works
Once a reservation has an active Smart Policy, Cloudbeds can automate eligible financial actions according to the policy's configured rules.
Depending on the payment gateway and reservation eligibility, these actions can include:
- Initial payments or payment authorizations.
- Scheduled collection of remaining balances.
- Capture of previously authorized amounts.
- Eligible cancellation and no-show financial actions.
For a detailed explanation of cancellation and no-show fee posting, see How Smart Policies Automatically Post Cancellation and No-Show Fees in Cloudbeds PMS.
Payment automation depends on your connected payment gateway. Properties without full automation must complete some or all payment actions manually.
Successful and failed automated payments
When an automated payment succeeds or fails, Cloudbeds can send an email notification if payment notifications are enabled.
If an automated payment fails, staff should contact the guest or request an updated payment method, then complete any required manual payment action in Cloudbeds PMS.
Before processing a manual payment, review the reservation's Smart Policy status and pending scheduled payments. Certain manual financial actions can permanently disable Smart Policy automation for the reservation.
How reservation changes affect scheduled payments
Some reservation modifications can change the amount of an upcoming scheduled payment. The result depends on the type of modification and whether the reservation remains eligible for the adjustment.
Changes that affect scheduled payments
- Stay date changes: Cloudbeds recalculates the remaining balance and updates upcoming scheduled payment amounts based on the updated dates.
- Room or rate plan changes: If the reservation moves to a room or rate plan with a different rate, the remaining balance updates when the assigned Smart Policy is configured to collect the remaining balance.
- Items and add-ons: Adding an item or add-on to the folio does not update an existing scheduled payment through the charge-adjustment workflow.
- Manual charge reductions: Using Adjust Charge to reduce the reservation total can update the pending scheduled payment to reflect the new remaining balance.
How Adjust Charge updates a scheduled payment
When you reduce the reservation total using Adjust Charge, the Policy section displays a preview of the financial changes before you save.
The preview includes the current and updated upcoming payment amounts and the new reservation total.
The outcome depends on how much the guest has already paid.
The guest still has a remaining balance
If a balance remains after the adjustment, Cloudbeds reduces the upcoming scheduled payment to match the new remaining balance.
In the example below, the Policy preview shows the upcoming payment decreasing from $859.23 to $750.14 before the adjustment is saved.
The adjusted total is already fully paid
If the guest has already paid enough to cover the adjusted reservation total, Cloudbeds reduces the upcoming payment to $0.00 and cancels it.
If the adjustment also creates an overpayment, Cloudbeds displays a warning that a manual refund is required. Saving the adjustment does not automatically refund the guest.
In the example below, the upcoming payment decreases from $641.05 to $0.00, and the adjustment creates a $122.59 overpayment.
Adjustment limitations: This scheduled-payment adjustment does not apply to reservations that are already checked in. Adjustments that increase the reservation total are also not included in this workflow.
After saving an eligible adjustment, allow a few minutes for the scheduled payment to reflect the updated amount.
Manual payments and turning off Smart Policy
Smart Policy automation is designed to manage eligible financial activity according to the reservation's assigned rules.
However, certain manual financial actions can interrupt that automation. If Smart Policy is active and pending scheduled payments remain, Cloudbeds displays a warning before completing an affected action.
Manual actions that can turn Smart Policy off
The warning can appear when staff perform the following actions:
- Add a manual payment.
- Process a refund.
- Cancel a scheduled payment.
- Void a payment or release an authorization.
- Add an item and charge for it during the same workflow.
Before the action is completed, Cloudbeds explains that continuing will turn Smart Policy off and identifies the pending scheduled payments that will be canceled.
The example below shows the warning displayed during a manual payment action.
What happens when Smart Policy is turned off
If an authorized user confirms a manual action that disables Smart Policy, or explicitly turns automation off from the reservation folio:
- All pending scheduled payments are canceled.
- Automatic payment processing stops.
- Automatic cancellation and no-show fee processing, including eligible folio posting, stops.
- Payments already collected remain on the reservation and are not automatically refunded.
- Staff must manually handle any remaining balance, required refund, or applicable cancellation or no-show fee.
Turning Smart Policy off is permanent for the reservation. Once automation is disabled, it cannot be turned back on for that reservation. Turning it off does not assign a different Smart Policy or automatically refund previously collected payments.
The manual-action warning appears when Smart Policy is active and pending scheduled payments remain. If there are no pending scheduled payments, these actions continue through their regular workflow.
Routine system-generated actions do not turn Smart Policy off. For example, an authorization automatically released by the system at checkout is not treated as a manual staff action.
How to turn off Smart Policy for a reservation
If a reservation requires manual financial management, an authorized user can turn off Smart Policy from the reservation folio.
- Open the applicable reservation in Cloudbeds PMS.
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Go to the Folio tab and locate the Smart Policy control. The control shows whether automation is currently On or Off.
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Click the Smart Policy control to open its panel. Review the current automation status, pending scheduled payments, and payments already processed.
- Switch the Smart Policy toggle Off.
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Review the warning explaining which automated actions will stop and which pending scheduled payments will be canceled.
- Confirm the change to turn Smart Policy automation off for the reservation.
Confirm that automation is off
After the change is processed, the Folio tab displays the Smart Policy status as Off.
You can open the Smart Policy panel again to review the final state. Canceled scheduled payments remain visible, processed payments remain listed, and the panel confirms that Smart Policy cannot be turned back on.
The reservation activity log also records who turned Smart Policy off and when.
Permission required to disable automation
Users need the applicable reservation-level Smart Policy override permission to turn automation off.
Staff without this permission can review Smart Policy information but cannot complete the turn-off action.
To review the role configuration, go to Account Menu > Settings > Users > Roles. Select the applicable role and review its reservation permissions.
For additional information about managing permissions, see Add, edit, or delete roles and Role privileges.
Cancellations and no-shows
When a reservation is canceled or marked as No-show, Cloudbeds applies the cancellation or no-show terms defined in the reservation's assigned Smart Policy.
For eligible reservations with active automation, Cloudbeds can calculate the applicable penalty and perform automatic financial actions. The specific outcome depends on the policy settings and reservation eligibility.
For detailed information about cancellation and no-show fees, automatic folio posting, taxes and fees, payment processing, overrides, and reporting, see How Smart Policies Automatically Post Cancellation and No-Show Fees in Cloudbeds PMS.
Guest Portal cancellations
Guest Portal cancellations support Smart Policy cancellation rules. When a guest cancels an eligible reservation through the Guest Portal, the applicable Smart Policy cancellation terms are applied for supported credit card and digital payment workflows.
The financial outcome depends on the reservation's assigned Smart Policy, automation status, eligibility, and payment configuration. Staff should review the reservation folio and payment history before manually processing a penalty or refund.
For more information about how cancellation penalties are calculated, posted, and processed, see How Smart Policies Automatically Post Cancellation and No-Show Fees in Cloudbeds PMS.
Best practices for daily operations
Follow these recommendations when managing reservations with Smart Policies:
- Check the Smart Policy status: Confirm whether automation is active before manually managing payments or refunds.
- Review financial warnings: Before confirming an affected manual action, verify which scheduled payments will be canceled and which automated processes will stop.
- Use the Adjust Charge preview: Confirm how an eligible charge reduction affects the upcoming scheduled payment before saving.
- Review scheduled payments: Verify that upcoming amounts reflect the reservation's current balance and operational requirements.
- Plan for manual follow-up: If Smart Policy automation is turned off, staff must manage any remaining payments, refunds, or applicable fees.
- Check Guest Portal cancellation outcomes: For supported credit card and digital payment workflows, review the Smart Policy outcome and transaction history before taking additional financial action.
Understanding these behaviors helps your team distinguish between automated and manual financial actions, recognize when a reservation requires follow-up, and avoid unintentionally disabling Smart Policy automation.
Related articles
- Set up Smart Policies: Configure Smart Policies and assign them to rate plans.
- How Smart Policies Automatically Post Cancellation and No-Show Fees in Cloudbeds PMS: Learn how cancellation and no-show penalties are calculated, posted to the folio, overridden, and reported.
- Use Smart Policy Exceptions to Override Cancellation Policies for Specific Dates: Configure date-based policy overrides.
- Add, edit, or delete roles: Manage staff roles and their assigned permissions.
- Role privileges: Understand the privileges available for different staff roles.
Comments
What is the point of Smart Policies automating cancellations, refunds, and cancellation fees, if they don't also automate posting the cancellation fee to the folio? It automates one piece, but then I still have to manually go in an post the cancellation fee to the Folio or I will show a balance due after the cancellation. I don't understand why this piece isn't automated!!
Cancellations are way more complex than they should be in Cloudbeds, making a Manager/Owner the only person who can handle them because there is too much room for error for other staff. As the Manager/Owner there is way too much room for error for me having to manually calculate the math!
Hello, Kelly,
Thank you for this candid feedback. We understand that the folio automation would have a positive impact on the Smart Policies workflow within the platform.
I have already escalated your request to our Product team as a high-priority item. I've specifically highlighted your point about the gap between Smart Policy cancellations and Folio postings, and how this currently limits your ability to delegate these tasks to your staff.
Thank you for helping us optimize the feature and the overall user experience.
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