Handling Financials When an Event is Lost/Canceled

If an event is canceled, you may have to deal with several financial scenarios: if the event was invoiced, if deposit payments were received, or if a cancellation fee is needed. In this article we'll walk you through several of these scenarios and the actions you can take to close out the financials on cancelled events. Follow the links for step-by-step directions!

The scenarios:

• No Invoices or Invoices Not Sent, No Payments
• Deposit Invoice Issued, No Payments Received
• Deposit Invoice Issued, Payment Received
• Cancellation Fee Required

No Invoices or Invoices Not Sent, No Payments

If there are no invoices created or if the invoice was never sent to the client and no payments were received, then you can simply mark the event as lost.

Instructions:

• Mark an Event as Lost

Deposit Invoice Issued, No Payments Received

If a deposit invoice was sent to the client, we recommend that you:

1. Void the invoice
2. Mark the event as lost

Instructions:

• Void an Invoice
• Mark an Event as Lost

Deposit Invoice Issued, Payment Received

If a deposit invoice was sent to the client and payment was received:

1. Make sure that any payments have been allocated to the invoice.
2. Reverse the deposit invoice. This will update the amount owed to zero. Because the payment was allocated, the invoice now has a negative balance and a refund or credit can be issued.
3. Issue the refund or credit.
4. Mark the event as lost.

Instructions:

• Allocate a Payment or Credit
• Reverse a Deposit
• Issue a Refund or Credit
• Mark an Event as Lost

Cancellation Fee is Required

If you will charge your client a cancellation fee:

1. Make sure that any payments have been allocated to the deposit invoice. If no deposit invoice was created, skip to step 4.
2. Reverse the deposit invoice. This will update the amount owed to zero. Because the payment was allocated, the invoice now has a negative balance and a refund or credit can be issued.
3. Issue a credit. We'll use this credit shortly!
4. Add the cancellation fee:
   1. Confirm that there is an inventory item entitled "Cancellation Fee" created and added to the event's price schedule.
      We recommend that the fee item's price is zero unless the cancellation fee is always the same flat amount.
   2. Add the fee item to a function on the event, adding the amount of the fee as the price of the item.
5. Create a new standard (not deposit) invoice:
   1. Select the cancellation fee item.
   2. Allocate the credit you just created.
6. You can now either send the invoice to the client for payment or issue a credit/refund.

Instructions:

• Allocate a Payment or Credit
• Reverse a Deposit
• Issue a Refund or Credit
• Create Inventory Items
• Add Items to Functions
• Create an Invoice
• Mark an Event as Lost