Until a service reaches a final delivery status, the whole amount paid for it is held as a liability and none of it is revenue, under every reading.

The amount paid for a delivered service is revenue, under every reading.

When a service reaches a final delivery status, none of the amount paid for it is held as a liability.

Open question for the business. The sources do not say which final statuses earn revenue. Under a reading that keeps the amount paid for a no-show as a liability, or that does not recognize a penalty when a cancellation is reported, money stays a liability on a service that will never change again. The examples noShowTreatments and cancelWithPenalty show it. For DELIVERED, NOT CLAIMED, EXPIRED and FAILED TO DELIVER, does the amount paid earn revenue, go back as a refund or stay a liability, and when is a penalty reported at cancellation recognized?

Whatever accounting is told about an order's services, its payments equal its refunds, plus the amount held as liability, plus the revenue recognized, plus the forfeited amounts.

Open question for the business. Under the reading where accounting records a cancellation as the airline sends it, a refund, penalty and forfeited amount that do not add up to what was paid break the balance. The examples goodwillRefund and cancelNotAddingUp show it: a goodwill refund of 120.00 on a 100.00 flight leaves 100.00 paid against 120.00 refunded. Where the airline checks the amounts, the balance holds (order_books_balance_of_checked). Must the amounts of a cancellation add up to what was paid, and if not, where does the difference go?

Whatever accounting is told about an order's services, it never refunds more than was paid.

Open question for the business. Under the reading where accounting records a cancellation as the airline sends it, nothing stops a refund larger than what was paid. The example goodwillRefund shows it: a goodwill refund of 120.00 on a flight paid at 100.00. Where the airline checks the amounts, a refund never exceeds what was paid (refunds_within_payments_of_checked). May a refund exceed what was paid, for example as goodwill, and how is the excess accounted for?

Where the airline checks the amounts of a cancellation, a report whose refund, penalty and forfeited amount do not add up to the amount paid for the service is refused, under every reading of revenue.

Given an order with one flight paid at 100.00 EUR.

When the passenger flies and the flight is reported DELIVERED.

Then after the payment the 100.00 EUR is a liability. Once the flight is delivered it is revenue. At each step payments equal refunds, plus liability, plus revenue, plus forfeited amounts.

Given an order with one flight paid at 100.00 EUR.

When the customer cancels with a penalty of 25.00 EUR, receives 75.00 EUR, and the flight is removed.

Then where the penalty is recognized at cancellation, it is 25.00 EUR of revenue. Where it is not, the 25.00 EUR stays a liability on a flight that can no longer change, since no delivery will ever recognize it. The books balance either way, and nothing is refunded beyond what was paid.

Given an order with one flight paid at 100.00 EUR.

When the passenger does not show and the flight is reported NOT CLAIMED.

Then depending on the reading, the 100.00 EUR is revenue, is refunded, or stays a liability on a flight that can no longer change. The books balance under all three.

Given an order with one flight paid at 100.00 EUR.

When a cancellation is reported with a refund of 100.00 EUR and a penalty of 25.00 EUR, which add up to more than was paid.

Then where the airline checks the amounts, the report is refused and the flight is still a 100.00 EUR liability. Where accounting records it as sent, the books show 100.00 EUR paid against 100.00 EUR refunded and 25.00 EUR of revenue: they do not balance.

Given an order with one flight paid at 100.00 EUR.

When the airline cancels it and reports a goodwill refund of 120.00 EUR.

Then where the airline checks the amounts, the report is refused. Where accounting records it as sent, 120.00 EUR is refunded against 100.00 EUR paid: the refunds exceed the payments and the books do not balance.

Given an order with one flight paid at 100.00 EUR, of which 10.00 EUR is a non-refundable tax.

When the customer cancels and receives 90.00 EUR.

Then the books record 90.00 EUR refunded and 10.00 EUR forfeited, and they balance: 100.00 EUR paid equals 90.00 EUR refunded plus 10.00 EUR forfeited.