How to record short term rental cancellation

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?

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

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.