How to Reverse an Accrued OTA Commission When a Booking.com Guest Does Not Arrive and Is Not Charged
Reducing the OTA commission accrual when a no-show guest results in no charge and therefore no commission is owed.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accrued Commissions Payable | Liability (-) | 30.00 | - |
| Commission Expense: OTA | Expense (-) | - | 30.00 |
💡 Accountant's Note
If you don't charge the guest, the OTA doesn't get a commission. You must reverse your month-end accrual to keep expenses accurate.
Practitioner & Systems Framework
💻 ERP Architecture
OTA commissions are only owed on actual stays — if a no-show results in no charge to the guest (either because the rate plan has a free cancellation policy or the hotel chooses to waive the charge), no commission is payable. Reverse the accrual in the period the no-show is confirmed. For guaranteed no-shows where the hotel does charge the guest, the commission may still be owed depending on the OTA agreement — confirm the specific OTA's terms. Maintain a no-show log to support reversals.
⚠️ Audit Flags
Auditors trace commission reversals to the corresponding no-show events and confirm the guest was not charged. A reversal without a genuine no-show (i.e., the guest stayed and was charged but the commission was reversed) understates commission expense and overstates GOP. The OTA invoices (when received) serve as the final reconciliation — any difference between accrued commissions and OTA invoices must be explained.
📄 Required Documentation
OTA no-show notification or PMS no-show status, confirmation that the guest was not charged (no folio charge), commission accrual reversal entry, OTA agreement confirming commission waiver on no-shows, subsequent OTA invoice reconciliation, and no-show revenue recognition entry (see hospitality-guaranteed-no-show-revenue).
Automate this entry with the JEH Accounting Suite
Stop doing manual entry. Our VBA-powered ERP automatically generates your ledgers, Trial Balance, and Financial Statements.
No Subscriptions. Own your data.
Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.