🔄 Supplier Cancellation Fees, Tracked

Supplier vs Customer Cancellation Fees

These are two separate features in Kaptio that often apply to the same booking.

Customer Cancellation Fee

What you charge your traveller when they cancel a booking.

• Configured via: Cancellation Configurations — tiered rules on the booking or package level
• Applies to: The customer’s invoice — determines how much of the selling price the traveller forfeits
• Direction: Traveller → You (the operator)

Supplier Cancellation Fee

What your supplier charges you when you cancel a booked service.

• Configured via: Supplier Cancellation Policies (this feature) — tiered rules linked to supplier agreements
• Applies to: Your cost lines and margin — determines how much of the service cost you still owe the supplier
• Direction: You (the operator) → Supplier

How they relate

Both fees are tracked independently on the same booking. When a cancellation happens, the customer pays you their cancellation fee and you pay the supplier theirs. The difference between what you retain from the traveller and what you owe the supplier is your margin on the cancellation.

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What Happens When You Cancel an Itinerary Item

When an itinerary item is cancelled, Kaptio updates the item’s Mode, Confirmation Status, and price lines. The behaviour depends on the item’s confirmation status before cancellation.

Mode Changes

Itinerary items have a Mode__c field that tracks their lifecycle state. During cancellation, mode transitions follow this sequence:

Mode	Meaning
Active	Item is live and part of the booking
Operations Pending	All passengers have been removed from a confirmed line via re-evaluation — a hidden Cancellation line is created for the fee; the original line moves here while awaiting operational resolution
Cancellation	Item has been internally cancelled — cancellation price lines are applied, but the supplier may not yet be notified
Deleted	Item is fully removed from the active booking — its amounts are no longer considered towards itinerary totals

When you cancel an item, it moves from Active → Cancellation. If re-evaluation removes every passenger from a confirmed line, the original item becomes Operations Pending and the fee sits on the new cancellation line. Completing Send Cancellation → Confirm or Cancel Manually on a supplier-cancellation fee row keeps mode Cancellation (not Deleted) so invoicing amounts remain visible; Deleted applies to removals that skip that lifecycle (such as non-qualifying deletes or unconfirmed lines with no supplier booking).

Confirmation Status Transitions

The system handles cancellation differently depending on whether the item was already confirmed with the supplier:

If the item was unconfirmed (status: Unconfirmed or Confirmation Not Needed):

• Confirmation status → Cancelled Manually (no supplier interaction needed)
• Cost lines are zeroed out — since nothing was booked with the supplier, there is no cost to the operator
• No supplier cancellation fee applies

If the item was confirmed or sent (any other status — Confirmed, Sent, Confirmed Amendment, etc.):

• Confirmation status → Unconfirmed Cancellation (supplier still needs to be notified)
• Cost lines are preserved — the supplier may charge a cancellation fee
• Supplier cancellation fee is calculated based on the policy

From Unconfirmed Cancellation, the operator follows the standard confirmation workflow on the cancellation line(s):

1. Send Cancellation to the supplier → status becomes Sent Cancellation (33); mode stays Cancellation for fee-bearing supplier-cancellation rows (not Deleted)
2. Supplier acknowledges → operator marks Confirm → status becomes Confirmed Cancellation (43); mode stays Cancellation

Alternatively, the operator can Cancel Manually if no supplier notification is needed — status Cancelled Manually (61); mode stays Cancellation on those same fee rows.

Full Confirmation Status Reference

Status	Code	When It Appears
Unconfirmed	11	Item not yet sent to supplier
Unconfirmed Cancellation	13	Item cancelled internally, supplier not yet notified
Sent Cancellation	33	Cancellation request sent to supplier
Confirmed Cancellation	43	Supplier has acknowledged the cancellation
Cancelled Manually	61	Cancelled without supplier interaction (was unconfirmed, or manually overridden)

How Fees Are Applied Based on Confirmation Status

The confirmation status at the time of cancellation determines whether supplier costs are retained:

Prior Status	Cost Lines	Supplier Fee	Rationale
Unconfirmed / Confirmation Not Needed	Zeroed out	None	No booking existed with the supplier
Confirmed / Sent / Confirmed Amendment	Preserved	Calculated from policy	Supplier has a confirmed booking and may charge
Unconfirmed Amendment	Preserved	Calculated from policy	Original booking was confirmed; amendment was pending

When fees apply, the system creates cancellation price lines that offset the original sell and cost amounts:

• Sell Cancellation — reduces the customer’s charge by the refundable portion
• Cost Cancellation — reduces the operator’s cost by the refundable portion (cost minus supplier fee)
• Reseller Commission Cancellation — adjusts commission proportionally

Full vs Partial Cancellation

Kaptio supports two cancellation scopes:

Full cancellation — All items on the itinerary are cancelled. The itinerary status changes to the configured cancellation status, and every item goes through the mode and confirmation status transitions described above.

Partial (passenger) cancellation — Individual passengers are removed from specific items. The system:

1. Splits the itinerary item: the remaining passengers stay on the original item, and the cancelled passengers are moved to a cloned “cancellation” item
2. The original item’s confirmation status moves to Unconfirmed Amendment (if it was previously confirmed) so the supplier can be notified of the reduced quantity
3. The cloned cancellation item carries the cancellation fee price lines
4. Prices are recalculated proportionally based on the number of passengers removed

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Data Model

Supplier cancellation fees are modelled with four objects:

SupplierCancellationPolicy__c
  │   • Name (e.g., "Standard Hotel Terms")
  │   • Description__c (internal notes)
  │   • IsActive__c (must be true to take effect)
  │
  └── SupplierCancellationRule__c (master-detail children)
          • DaysBeforeTravel__c (threshold, e.g., 30)
          • ChargeType__c (Percentage or Fixed)
          • Value__c (fee amount — e.g., 50 for 50%, or 200 for $200)

SupplierAgreement__c
  │   • SupplierCancellationPolicy__c (lookup to the policy)
  │   • Account__c (supplier)
  │   • AgreementType__c (e.g., Commission)
  │   • DefaultCommission__c (commission %)
  │   • TaxExclusiveCommissionCalculation__c
  │   • Channels__c (comma-separated channel IDs)
  │   • ValidFrom__c / ValidTo__c
  │   • Brand__c (optional, for BU matching)
  │
  └── SupplierAgreementAssignment__c (child records, optional)
          • SupplierAgreement__c (parent agreement)
          • PriceCategory__c (highest priority match)
          • Service__c (second priority — links to Item__c)
          • Addon__c (add-on level scoping)
          • Fee__c (fee level scoping)

A policy is a named container. Rules inside the policy define the fee tiers. The policy is linked to a supplier agreement via a lookup field. Agreement assignments optionally scope the agreement to specific price categories, services, add-ons, or fees — enabling different cancellation terms for different parts of the same supplier’s catalog.

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Qualifying Confirmation Statuses

Supplier cancellation fees are only calculated when the itinerary item’s confirmation status is in the qualifying list. Items that were never confirmed (e.g., Unconfirmed, Waiting List, Pending, Confirmation Not Needed) will not generate fee lines, regardless of whether a valid cancellation policy exists.

Group	Statuses	Codes
Review	Review, Review Rate, Review Availability, Review Rate & Availability, Reconfirmation Rejected	21, 22, 23, 24, 25
Sent	Sent Confirmation, Sent Amendment, Sent Cancellation, Sent Reconfirmation	31, 32, 33, 34
Confirmed	Confirmed, Confirmed Amendment, Confirmed Cancellation, Reconfirmed, Pending Amendment	41, 42, 43, 44, 45

This gate is checked on all three trigger paths: re-evaluation, Cancel action on the Bookings tab, and service deletion from the Builder/Costings tab.

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How Fee Resolution Works

When a service cancellation is being evaluated, the system resolves the applicable fee like this:

1. Identify the supplier for the service being cancelled
2. Find the active Supplier Agreement for that supplier (considering validity dates, brand, and channel)
3. Read the Supplier Cancellation Policy linked to that agreement
4. Evaluate the policy’s rules against the number of days between now and the travel date
5. The rule whose DaysBeforeTravel__c threshold is the tightest match determines the fee

Worked Example

A hotel supplier has this cancellation policy:

Rule	Days Before Travel	Charge Type	Value
Early cancellation	60	Percentage	10
Standard cancellation	30	Percentage	50
Late cancellation	0	Percentage	100

If the travel date is April 15 and you cancel on:

• February 1 (73 days out): The 60-day rule applies → 10% of service cost
• March 20 (26 days out): The 30-day rule applies → 50% of service cost
• April 10 (5 days out): The 0-day rule applies → 100% of service cost

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Configuration Steps

Step 1: Create a Supplier Cancellation Policy

Navigate to the Supplier Cancellation Policies tab and click New.

Field	Description
Name	Descriptive label (e.g., “Hotel Partner — Standard Terms”)
Description	Internal notes about when this policy applies
Is Active	Must be checked for the policy to be resolved

Step 2: Add Cancellation Rules

From the policy record, create child Supplier Cancellation Rule records:

Field	Description	Example
Days Before Travel	The time threshold for this tier	30
Charge Type	Percentage or Fixed	Percentage
Value	Fee amount (percentage number or currency amount)	50

Create one rule per tier. A typical setup has 3–4 tiers covering the full timeline from booking to travel.

Step 3: Link to Supplier Agreement

Open the Supplier Agreement record (or create a new one via the Supplier Agreement modal):

1. Click the Supplier Cancellation Policy lookup field
2. Search for and select the policy you created
3. Set the Channels field if the agreement applies only to specific channels (comma-separated Channel IDs). If empty, falls back to brand/business unit matching.
4. Ensure ValidFrom and ValidTo cover the itinerary item’s travel dates
5. If the supplier charges commission, set AgreementType to Commission, set the DefaultCommission percentage, and check TaxExclusiveCommissionCalculation if commission is calculated on the pre-tax cost
6. Save the agreement

The policy is now active for any service booked under this agreement.

Step 4: Create Supplier Agreement Assignments (optional, for hierarchy scoping)

If you need the agreement to apply only to specific services or price categories, create Supplier Agreement Assignment records. Open the agreement record and use the Supplier Agreement Assignments related list.

Priority order: When resolving which agreement applies during cancellation, assignments are checked in this order:

1. Price Category level (highest priority) — set PriceCategory__c to the price category on the itinerary item
2. Service level (second priority) — set Service__c to the Item (Item__c) on the itinerary item
3. Add-on / Fee level — set Addon__c or Fee__c for granular scoping
4. Direct agreement (no assignments, lowest priority) — the agreement without any assignments acts as the fallback

If no assignments exist on the agreement, it applies to all services from that supplier (direct agreement level).

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Fixed vs Percentage Fees

Charge Type	How It Works	When to Use
Percentage	Fee = Value% × service cost	Most common — hotels, tours, transfers with proportional fees
Fixed	Fee = flat currency amount	Admin fees, processing charges, non-refundable deposits

You can mix both types in the same policy. For example:

• 60+ days: Fixed $100 admin fee
• 30–59 days: 50% of service cost
• 0–29 days: 100% of service cost

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Common Configuration Patterns

Standard Tiered Hotel Policy

Policy: "Hotel — Escalating Tiers"
├── Rule: 90 days+ → 0% (free cancellation)
├── Rule: 60 days  → 25%
├── Rule: 30 days  → 50%
└── Rule: 0 days   → 100% (full charge)

Non-Refundable Transfer

Policy: "Transfer — Non-Refundable"
└── Rule: 0 days → 100% (full charge from day of booking)

Fixed Admin Fee + Escalation

Policy: "Activity Partner — Admin + Escalating"
├── Rule: 30 days → Fixed $150
└── Rule: 0 days  → Percentage 100%

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Relationship to Supplier Agreements

Supplier Cancellation Policies sit alongside payment rules and service assignments on a Supplier Agreement. The agreement is the single point where all supplier commercial terms come together:

Agreement Component	Purpose
Payment Rules	When and how much you pay the supplier (deposits, balance, billback)
Service Assignments	Which services this agreement covers
Cancellation Policy	What the supplier charges you if you cancel

See the Supplier Agreements Configuration Guide for full details on agreement setup.

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Key Fields Reference

SupplierCancellationPolicy__c

Field	API Name	Type	Description
Name	Name	Text	Policy name
Description	Description__c	Long Text	Internal notes
Is Active	IsActive__c	Checkbox	Policy must be active to be resolved

SupplierCancellationRule__c

Field	API Name	Type	Description
Policy	SupplierCancellationPolicy__c	Lookup	Parent policy
Days Before Travel	DaysBeforeTravel__c	Number	Time threshold for this tier
Charge Type	ChargeType__c	Picklist	Percentage or Fixed
Value	Value__c	Number	Fee amount or percentage

SupplierAgreement__c (Cancellation and Commission Fields)

Field	API Name	Type	Description
Cancellation Policy	SupplierCancellationPolicy__c	Lookup	Links to the applicable cancellation policy
Agreement Type	AgreementType__c	Picklist	Agreement type (e.g., Commission). When set to Commission, SUPCOMMISSION and SUPCOMMISSIONCANCELLATION price lines are generated.
Default Commission	DefaultCommission__c	Percent	Default supplier commission percentage (e.g., 15 for 15%)
Tax Exclusive Commission	TaxExclusiveCommissionCalculation__c	Checkbox	When checked, commission is calculated on the cost amount excluding tax
Channels	Channels__c	Text	Comma-separated Channel IDs. If populated, the itinerary’s channel must be in this list for the agreement to match.
Valid From	ValidFrom__c	Date	Start of the agreement validity period
Valid To	ValidTo__c	Date	End of the agreement validity period
Brand	Brand__c	Lookup	Optional brand/business unit for matching

SupplierAgreementAssignment__c

Field	API Name	Type	Description
Supplier Agreement	SupplierAgreement__c	Lookup	Parent agreement
Price Category	PriceCategory__c	Lookup	Price category to match (highest priority)
Service	Service__c	Lookup	Item/service to match (second priority)
Add-on	Addon__c	Lookup	Add-on to match
Fee	Fee__c	Lookup	Fee to match

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Troubleshooting

Issue	Likely Cause	Solution
No cancellation fee showing	Policy not linked to agreement	Open the Supplier Agreement and set the Cancellation Policy lookup
Policy not resolving	Policy is inactive	Check IsActive__c is true on the policy record
Wrong fee amount	Wrong charge type on rule	Verify whether the rule should be Percentage or Fixed
Fee not matching contract	Rule thresholds don’t match contract terms	Compare DaysBeforeTravel__c values against the supplier contract
No policy available in lookup	Policy hasn’t been created yet	Create the policy record first, then link it
Agreement expired	Agreement validity dates don’t cover today	Check ValidFrom__c and ValidTo__c on the Supplier Agreement
Fee not applying despite policy existing	Item’s confirmation status is not in the qualifying list, or Agreement Assignment doesn’t match the correct hierarchy level	Verify the item’s ConfirmationStatusId__c is in the qualifying list (21–25, 31–34, 41–45). Check that Agreement Assignments match the item’s Price Category or Service. If no assignments exist, the agreement applies as a direct fallback.
Commission cancellation line missing	Agreement is not a Commission type	Set AgreementType__c = 'Commission' on the Supplier Agreement and ensure DefaultCommission__c is populated
Wrong agreement resolving	Multiple agreements exist for the supplier	Check Channel matching (Channels__c), Brand matching, and ValidFrom/ValidTo dates. If assignments exist, ensure the correct hierarchy level (Price Category > Service > Direct) matches the itinerary item.

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Related Content

• Supplier Agreements Configuration Guide — Full guide to payment rules, service assignments, and agreement setup
• Cancellation Configurations — Customer-facing cancellation fees (the other side of the equation)
• Bookings, From Quote to Complete — End-to-end booking lifecycle including cancellation handling