# How to record short term rental cancellation

**URL:** <https://community.stessa.com/t/how-to-record-short-term-rental-cancellation/585>\
**Category:** Setup & Support\
**Created:** [February 2, 2020, 2:04pm UTC](https://community.stessa.com/t/how-to-record-short-term-rental-cancellation/585 "2020-02-02T14:04:08Z")\
**Posts on this page:** 3\
**Page:** 1

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**Author:** ![happyhours509](https://avatars.discourse-cdn.com/v4/letter/h/bcef8e/32.png) [@happyhours509](https://community.stessa.com/u/happyhours509)\
**Post date:** [February 2, 2020, 2:04pm UTC](https://community.stessa.com/t/how-to-record-short-term-rental-cancellation/585/1 "2020-02-02T14:04:08Z")

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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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**Author:** ![devin](https://yyz2.discourse-cdn.com/flex032/user_avatar/community.stessa.com/devin/32/8_2.png) [@devin](https://community.stessa.com/u/devin)\
**Post date:** [February 18, 2020, 10:24pm UTC](https://community.stessa.com/t/how-to-record-short-term-rental-cancellation/585/2 "2020-02-18T22:24:42Z")

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

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**Author:** ![erik](https://avatars.discourse-cdn.com/v4/letter/e/b5ac83/32.png) [@erik](https://community.stessa.com/u/erik)\
**Post date:** [February 29, 2024, 9:32pm UTC](https://community.stessa.com/t/how-to-record-short-term-rental-cancellation/585/3 "2024-02-29T21:32:03Z")

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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.