Cancellation fees are probably the least standard thing across FBOs. The cancellation charge calculator automatically generates standardized charges based on user defined parameters.

Parameters

There are six Flight Cancellation Parameters. Setup of the MyFBO cancellation charge calculator is accomplished in the Financial Parameters. These parameters can be set by an Administrator from the Parameters and Settings menu. 

Flight Cancellation Parameters

How It Works

The length of time for which resources were reserved is capped using the first two parameters. If the aircraft time reserved is greater than "Maximum Aircraft Hours," it is reduced to that number. If the instructor time reserved is greater than "Maximum Staff Hours," it is reduced to that number. 

Then, the calculation is performed and the results are reduced to the "Percent of Aircraft Hours on Cancellation" and the "Percent of Staff Hours on Cancellation." The idea behind recovering less than the full amount is for the FBO to charge the customer only its lost profitability. 

If the "Percent of Staff Hours" is greater than zero, staff member commission is still calculated. 

Lastly, the total invoice is compared to the minimum and maximum cancellation fee parameters and constrained as appropriate. 

Processing 

Processing a cancellation fee begins from either the reservation details page or from the Review / Pending Reservations menu. In either case, select the option to "cancel and apply fee". Canceling a reservation by any other means does NOT trigger the cancellation charge calculator.

Cancellation Option from the Reservation Details Page

Cancellation Option from the Review Dispatch Status Page

Selecting the option to cancel and apply a fee results in the creation of a cancellation transaction. The transaction will include charges based on the Flight Cancellation Parameters. These charges may be edited in the transaction if desired. A reason for the cancellation should be indicated, and there is also space for additional remarks. Even if no fee is charged for a cancellation, the cancellation charge processor can still be used to create a "transaction" as a permanent record of the no show / cancellation.

Create Cancellation Transaction

The final step of cancellation charge processing is the creation of a financial receipt which includes the cancellation charges automatically.

Cancellation Charge Receipt

Alternative Calculation

If your FBO or club has enabled Special Surcharges in the Rates section of resource records, those surcharges may be used in lieu of the processing above.  This will be dependent upon the custom programming that is in place for your organization.

12/18/12 cli