How to record short term rental cancellation

Setup & Support
1

I have a few customer cancellations and I don’t think I am categorizing the refunds correctly. Here is an example of how I have entered a reservation and then refunded. I don’t think it is correct because it treats the refund of the sales tax and platform fee the same way as if I was transferring the sales tax To the state/county and paying the platform fees to the provider (VRBO).

Jane Doe reserves and makes payment 1:
Short Term Rental income $697.52
Cleans and Upsells $100.00
Taxes to Remit $172.15
Platform Fees $160.00

Jane Doe cancels reservation:
Short Term Rentals -697.52 Cleans and Upsells -100.00
Taxes to Remit -172.15 Platform Fees -160.00

How should I be categorizing the above transactions?

1 Like
2

@happyhours509 As discussed directly offline, your current approach seems just fine since it perfectly reverses the original set of transactions.

3

Here’s the problem with this, whatever he used to collect payment (Stripe, etc) will show gross income of $1129.67, which will appear on his 1099. However, in his books, his “short term rental income” will show as zero.

There’s no way in Stessa currently to account for a refund while maintaining the accuracy of gross payouts. Refunds needs to be its own category.