@Amy3680
Below is the useally procedure to provide full refund to a cancellation done by a guest:
(BTW Airbnb guest service fees are never refunded)
1. The guest cancels the reservation
2. The refund to be received (if any) is calculated according cancellation policy.
3. The remaining payout to the host stays in the transaction history until next payout-session
4 The host goes to resolution centre and order Airbnb to provide a full refund for the specific reservation.
(No need to contact Airbnb support, it is a simple procedure)
After that the payout to the host will show zero (00,00) in transaction history for the specific reservation.
Case closed !
If the remaining payout has already been transferred to the host, it will be deduced from a(!) next payout.
Therefor it is advisable to perform option 4 asap after the cancellation: no payout at all, no deduction, no administration.