The Resort Management System handles the refund process quite neatly for you. When a reservation with a payment on it is cancelled, a check is setup in the payables system for the refunding of the money paid. You should not delete this entry. You should process the entry after you have adjusted the entry as desired to reflect what you want to do with the money paid by the reservation. It is not necessary to refund the guest all or any part of the money, and often you may want to distribute the money to more than one account or vendor.
For example, you may want to withhold a cancellation fee. You may "redistribute" the guest money in one or a combination of several ways. You may create a check, which is the default. You may choose a credit card refund or post some or the entire amount to a general ledger account. You also have an option to reapply the amount to another reservation. See How do I reapply a refund to another reservation?
To change the default check refund, first retrieve the pending payable in your Maintain Pending Payables option of your Payables Menu. Once you have retrieved it, you will have a [Reapply] button to reapply some amount to an existing reservation. You may also click into the check amount field and change the amount to the desired amount to refund (it could even be zero) and then you will see additional distribution options. Remember a payable entry does not have to print a check. The entry is distributed or the check printed when selected for processing.