This article will help you if you do not wish to apply the cancellation fee, the guest had already paid and the bill was already closed.
You go ahead and not apply the Cancellation fee when Cancelling the booking. Doing so creates rebated items in the bill.
Then a rebate of the night item will be created.
You will then close these items in exactly the same way that payment was initially taken for the original bill.
Note: The system will default the amount which needs to be refunded. You can either select a different amount of leave as is and close the bill.
The new bill will look like this:
The nights along with the City tax were cancelled and refunded.