It is only normal to have to give refunds at your park for things like cancellations. How you process those cancellations in Firefly can depend on policies you have setup at your park. Let us walk through some common scenarios.
1. Refund in FULL
This scenario will walk through best practices in a case where you offer a full refund on a payment.
First, go to the reservation by finding the reservation on the reservation grid or from the Search Reservations page. Then, click on the Charges tab and review any payments made. To refund a payment, click the options button next to the payment and click Refund.
Click Options > Refund to refund all or part of a payment
Next, indicate that you want to refund the entire amount. You choose to either exclude or include the processing fees (if you pass them onto the guest) in this refund. Select the refund method and Payment Refund method, and click Save.
Create & Save the refund
After you hit save, the refund will be processed. However, you will notice that Firefly now shows an unpaid balance due, even though they won't be paying again.
Notice the Balance due at the bottom and the UNPAID label
Now, let's balance the books so this accurately shows up on reporting. Two 2 quick steps will fix this charge and show there is actually nothing owed on it. Click the three dots (...) next to UNPAID and click Edit
Edit the refunded charge
Once the edit charge screen pops up, simply find the QTY slider and change the quantity to 0. This will reflect that the guest no longer owes any remaining amount on the charge.
Edit QTY to "0"
DO NOT CHANGE THE PRICE TO "0" , Make sure you edit the quantity to 0 instead :)
Now when you hit save, the charge will update and be "balanced" showing that there is now nothing owed on that refunded payment.
Correctly Balanced Charge
2. Partial Refunds
In some cases, you will offer partial refunds. This could be a scenario where you charge a cancellation fee so you only refund a partial amount after keeping a fee.
Option 1: Updating the original charge directly. This is recommended if you don't have taxes on payments being refunded. To do this, on the payment you wish to refund, click 
then Refund. On the refund popup select, Refund partial amount, and enter in the custom amount you wish to refund based on the amount you are keeping. When finished hit Save.
Once the refund is processed, to balance the charge you can click the three dots (...) next to the charge and click edit. Here update the Price, to reflect the amount you kept. Then hit save.
Example refund using Option 1
Option 2: Create a new charge and transfer the amount being kept to the new charge. This is recommended if you are refunding a taxed payment as it is the best way keep your reporting and accounting correct. To do this is to transfer the part of the original payment that you are keeping to a new charge and then process the refund for the rest of the original payment.
First you will want to create the new charge. If the amount you are keeping is different per reservation you can do this by hitting New Charge in the charges tab of the reservation. From there you can name and enter the custom amount for the charge. If the amount you are keeping is always the same, you could save a few clicks by creating an add-on, and apply it as a new charge.
Create a new charge equal to the amount you wish to keep of the original payment
Once you create this new charge, we now want to transfer part of the original payment to cover that amount being kept. Do do this hit the 
next to the original payment, then click Transfer to another charge. The transfer charge popup will then open, from there choose the new charge that was made, then select Transfer part of payment, then enter in the amount you are keeping.
Transfer part of the original payment
Once you hit Transfer, your charges will update. The new charge that you're keeping will show as paid and the original charge will show that a balance is due since the amount transferred was taken out.
Payments transferred
Now, on the original charge, you can proceed to process it as a full refund following the instruction in #1 above. Not only does this keep your books clean but it also allows you to send a new invoice to the guest that shows the money amount that was kept as a fee.
An Example payments screen after all steps have been completed