diff --git a/hotel/__manifest__.py b/hotel/__manifest__.py
index dd9d641b8..161a55904 100644
--- a/hotel/__manifest__.py
+++ b/hotel/__manifest__.py
@@ -41,6 +41,7 @@
         'views/hotel_room_type_class_views.xml',
         'views/general.xml',
         'views/inherited_product_template_views.xml',
+        'views/inherited_product_pricelist_views.xml',
         'views/hotel_room_amenities_type_views.xml',
         'views/hotel_room_amenities_views.xml',
         'views/hotel_room_type_restriction_views.xml',
@@ -52,6 +53,7 @@
         'views/hotel_board_service_views.xml',
         'views/hotel_checkin_partner_views.xml',
         'views/hotel_board_service_room_type_views.xml',
+        'views/hotel_cancelation_rule_views.xml',
         'data/cron_jobs.xml',
         'data/records.xml',
         'data/email_template_cancel.xml',
diff --git a/hotel/models/__init__.py b/hotel/models/__init__.py
index dbb314957..ae46acfd3 100644
--- a/hotel/models/__init__.py
+++ b/hotel/models/__init__.py
@@ -31,3 +31,4 @@ from . import hotel_board_service
 from . import hotel_board_service_room_type_line
 from . import hotel_board_service_line
 from . import inherited_account_invoice_line
+from . import hotel_cancelation_rule
diff --git a/hotel/models/hotel_cancelation_rule.py b/hotel/models/hotel_cancelation_rule.py
new file mode 100644
index 000000000..0415d3b56
--- /dev/null
+++ b/hotel/models/hotel_cancelation_rule.py
@@ -0,0 +1,30 @@
+# Copyright 2017  Alexandre Díaz
+# Copyright 2017  Dario Lodeiros
+# License AGPL-3.0 or later (http://www.gnu.org/licenses/agpl).
+from odoo import models, fields
+
+
+class HotelCancelationRule(models.Model):
+    _name = 'hotel.cancelation.rule'
+    _description = 'Cancelation Rules'
+
+    name = fields.Char('Amenity Name', translate=True, required=True)
+    active = fields.Boolean('Active', default=True)
+    pricelist_ids = fields.One2many('product.pricelist',
+                                    'cancelation_rule_id',
+                                    'Pricelist that use this rule')
+    days_intime = fields.Integer(
+        'Days Late',
+        help='Maximum number of days for free cancellation before Checkin')
+    penalty_late = fields.Integer('% Penalty Late', defaul="100")
+    apply_on_late = fields.Selection([
+        ('first', 'First Day'),
+        ('all', 'All Days'),
+        ('days', 'Specify days')], 'Late apply on', default='first')
+    days_late = fields.Integer('Late first days', default="2")
+    penalty_noshow = fields.Integer('% Penalty No Show', default="100")
+    apply_on_noshow = fields.Selection([
+        ('first', 'First Day'),
+        ('all', 'All Days'),
+        ('days', 'Specify days')], 'No Show apply on', default='all')
+    days_noshow = fields.Integer('NoShow first days', default="2")
diff --git a/hotel/models/hotel_reservation.py b/hotel/models/hotel_reservation.py
index af6233398..662d9f872 100644
--- a/hotel/models/hotel_reservation.py
+++ b/hotel/models/hotel_reservation.py
@@ -170,12 +170,15 @@ class HotelReservation(models.Model):
                               track_visibility='onchange',
                               help='Number of children there in guest list.')
     to_assign = fields.Boolean('To Assign', track_visibility='onchange')
-    state = fields.Selection([('draft', 'Pre-reservation'), ('confirm', 'Pending Entry'),
-                              ('booking', 'On Board'), ('done', 'Out'),
-                              ('cancelled', 'Cancelled')],
-                             'State', readonly=True,
-                             default=lambda *a: 'draft',
-                             track_visibility='onchange')
+    state = fields.Selection([
+        ('draft', 'Pre-reservation'),
+        ('confirm', 'Pending Entry'),
+        ('booking', 'On Board'),
+        ('done', 'Out'),
+        ('cancelled', 'Cancelled')
+        ], string='State', readonly=True,
+        default=lambda *a: 'draft', copy=False,
+        track_visibility='onchange')
     reservation_type = fields.Selection(related='folio_id.reservation_type',
                                         default=lambda *a: 'normal')
     invoice_count = fields.Integer(related='folio_id.invoice_count')
@@ -635,6 +638,11 @@ class HotelReservation(models.Model):
                 write_vals.update({'room_type_id': self.room_id.room_type_id.id})
             self.update(write_vals)
 
+    @api.onchange('cancelled_reason')
+    def onchange_cancelled_reason(self):
+        for record in self:
+            record._compute_cancelled_discount()
+
     @api.onchange('partner_id')
     def onchange_partner_id(self):
         addr = self.partner_id.address_get(['invoice'])
@@ -815,6 +823,9 @@ class HotelReservation(models.Model):
             else:
                 vals.update({'state': 'confirm'})
             record.write(vals)
+            record.reservation_line_ids.update({
+                'cancel_discount': 0
+            })
 
             if record.splitted:
                 master_reservation = record.parent_reservation or record
@@ -846,7 +857,9 @@ class HotelReservation(models.Model):
         for record in self:
             record.write({
                 'state': 'cancelled',
+                'cancelled_reason': record.compute_cancelation_reason()
             })
+            record._compute_cancelled_discount()
             if record.splitted:
                 master_reservation = record.parent_reservation or record
                 splitted_reservs = self.env['hotel.reservation'].search([
@@ -861,6 +874,25 @@ class HotelReservation(models.Model):
                 splitted_reservs.action_cancel()
             record.folio_id.compute_amount()
 
+    @api.multi
+    def compute_cancelation_reason(self):
+        self.ensure_one()
+        pricelist = self.pricelist_id
+        if pricelist and pricelist.cancelation_rule_id:
+            tz_hotel = self.env['ir.default'].sudo().get(
+                'res.config.settings', 'tz_hotel')
+            today = fields.Date.context_today(self.with_context(
+                tz=tz_hotel))
+            days_diff = (fields.Date.from_string(self.real_checkin) -
+                         fields.Date.from_string(today)).days
+            if days_diff < 0:
+                return 'noshow'
+            elif days_diff < pricelist.cancelation_rule_id.days_intime:
+                return 'late'
+            else:
+                return 'intime'
+        return False
+
     @api.multi
     def draft(self):
         for record in self:
@@ -904,11 +936,17 @@ class HotelReservation(models.Model):
             return True
         return False
 
-    @api.depends('reservation_line_ids.discount')
+    @api.depends('reservation_line_ids.discount',
+                 'reservation_line_ids.cancel_discount')
     def _compute_discount(self):
         for record in self:
-            record.discount = sum(line.price * ((line.discount or 0.0) * 0.01) \
-                for line in record.reservation_line_ids)
+            discount = 0
+            for line in record.reservation_line_ids:
+                first_discount = line.price * ((line.discount or 0.0) * 0.01)
+                price = line.price - first_discount
+                cancel_discount = price * ((line.cancel_discount or 0.0) * 0.01)
+                discount += first_discount + cancel_discount
+            record.discount = discount
 
     @api.depends('reservation_line_ids.price', 'discount', 'tax_ids')
     def _compute_amount_reservation(self):
@@ -927,6 +965,51 @@ class HotelReservation(models.Model):
                     'price_subtotal': taxes['total_excluded'],
                 })
 
+    @api.multi
+    def _compute_cancelled_discount(self):
+        self.ensure_one()
+        pricelist = self.pricelist_id
+        if self.state == 'cancelled':
+            if self.cancelled_reason and pricelist and pricelist.cancelation_rule_id:
+                date_start_dt = fields.Date.from_string(self.real_checkin or self.checkin)
+                date_end_dt = fields.Date.from_string(self.real_checkout or self.checkout)
+                days = abs((date_end_dt - date_start_dt).days)
+                rule = pricelist.cancelation_rule_id
+                if self.cancelled_reason == 'late':
+                    discount = 100 - rule.penalty_late
+                    if rule.apply_on_late == 'first':
+                        days = 1
+                    elif rule.apply_on_late == 'days':
+                        days = rule.days_late
+                elif self.cancelled_reason == 'noshow':
+                    discount = 100 - rule.penalty_noshow
+                    if rule.apply_on_noshow == 'first':
+                        days = 1
+                    elif rule.apply_on_noshow == 'days':
+                        days = rule.days_late - 1
+                elif self.cancelled_reason == 'intime':
+                    discount = 100
+
+                checkin = self.real_checkin or self.checkin
+                dates = []
+                for i in range(0, days):
+                    dates.append((fields.Date.from_string(checkin) + timedelta(days=i)).strftime(
+                            DEFAULT_SERVER_DATE_FORMAT))
+                self.reservation_line_ids.filtered(lambda r: r.date in dates).update({
+                    'cancel_discount': discount
+                    })
+                self.reservation_line_ids.filtered(lambda r: r.date not in dates).update({
+                    'cancel_discount': 100
+                    })
+            else:
+                self.reservation_line_ids.update({
+                    'cancel_discount': 0
+                    })
+        else:
+            self.reservation_line_ids.update({
+                'cancel_discount': 0
+                })
+
     @api.model
     def prepare_reservation_lines(self, dfrom, days, pricelist_id, vals=False, update_old_prices=False):
         total_price = 0.0
@@ -1164,7 +1247,6 @@ class HotelReservation(models.Model):
                 'price_total': tprice[1],
                 'parent_reservation': parent_res.id,
                 'room_type_id': parent_res.room_type_id.id,
-                'discount': parent_res.discount,
                 'state': parent_res.state,
                 'reservation_line_ids': reservation_lines[1],
                 'preconfirm': False,
diff --git a/hotel/models/hotel_reservation_line.py b/hotel/models/hotel_reservation_line.py
index 11432fe80..afce0fe0f 100644
--- a/hotel/models/hotel_reservation_line.py
+++ b/hotel/models/hotel_reservation_line.py
@@ -22,9 +22,13 @@ class HotelReservationLine(models.Model):
                                      ondelete='cascade', required=True,
                                      copy=False)
     date = fields.Date('Date')
+    state = fields.Selection(related='reservation_id.state')
     price = fields.Float(
         string='Price',
         digits=dp.get_precision('Product Price'))
+    cancel_discount = fields.Float(
+        string='Cancel Discount (%)',
+        digits=dp.get_precision('Discount'), default=0.0)
     discount = fields.Float(
         string='Discount (%)',
         digits=dp.get_precision('Discount'), default=0.0)
diff --git a/hotel/models/inherited_product_pricelist.py b/hotel/models/inherited_product_pricelist.py
index cae65df63..2296f9855 100644
--- a/hotel/models/inherited_product_pricelist.py
+++ b/hotel/models/inherited_product_pricelist.py
@@ -11,6 +11,9 @@ class ProductPricelist(models.Model):
     pricelist_type = fields.Selection([
         ('daily', 'Daily Plan'),
     ], string='Pricelist Type', default='daily')
+    cancelation_rule_id = fields.Many2one(
+        'hotel.cancelation.rule',
+        string="Cancelation Policy")
 
     @api.multi
     @api.depends('name')
diff --git a/hotel/views/hotel_cancelation_rule_views.xml b/hotel/views/hotel_cancelation_rule_views.xml
new file mode 100644
index 000000000..d765373bc
--- /dev/null
+++ b/hotel/views/hotel_cancelation_rule_views.xml
@@ -0,0 +1,63 @@
+<?xml version="1.0" encoding="utf-8"?>
+<odoo>
+
+    <!--==================================================== Cancelation Rules ==================================================== -->
+    <!-- Form view of cancelation rules -->
+    <record model="ir.ui.view" id="hotel_cancelation_rule_form">
+        <field name="name">hotel.cancelation.rule.form</field>
+        <field name="model">hotel.cancelation.rule</field>
+        <field name="arch" type="xml">
+            <form string="Cancelation Rules">
+                <sheet>
+                    <h3>
+                        <field name="name" />
+                        <separator />
+                        <label for="name" string="Max. days InTime before Checkin" />
+                        <field name="days_intime" />
+                    </h3>
+                    <group>
+                        <group string="Late">
+                            <field name="penalty_late" />
+                            <field name="apply_on_late" />
+                            <field name="days_late" attrs="{'invisible': [('apply_on_late','not in',('days'))]}" />
+                        </group>
+                        <group string="No Show">
+                            <field name="penalty_noshow" />
+                            <field name="apply_on_noshow" />
+                            <field name="days_noshow" attrs="{'invisible': [('apply_on_noshow','not in',('days'))]}" />
+                        </group>
+                    </group>
+                </sheet>
+            </form>
+        </field>
+    </record>
+
+    <!-- Tree view of cancelation rules -->
+    <record model="ir.ui.view" id="hotel_cancelation_rule_view_tree">
+        <field name="name">hotel.cancelation.rule.tree</field>
+        <field name="model">hotel.cancelation.rule</field>
+        <field name="arch" type="xml">
+            <tree string="Cancelation Rules">
+                <field name="name" />
+                <field name="days_intime" />
+                <field name="penalty_late" />
+                <field name="apply_on_late" />
+                <field name="penalty_noshow" />
+                <field name="apply_on_noshow" />
+            </tree>
+        </field>
+    </record>
+
+    <!-- Action of hotel cancelation rules -->
+    <record model="ir.actions.act_window" id="action_hotel_cancelation_rule">
+        <field name="name">Cancelation Rules</field>
+        <field name="res_model">hotel.cancelation.rule</field>
+        <field name="view_type">form</field>
+        <field name="view_mode">tree,form</field>
+    </record>
+
+    <menuitem name="Cancelation Rules" id="menu_hotel_cancelation_rule"
+        action="action_hotel_cancelation_rule" sequence="25"
+        parent="hotel.configuration_others" />
+
+</odoo>
diff --git a/hotel/views/hotel_folio_views.xml b/hotel/views/hotel_folio_views.xml
index 9dbbd7d5c..61086d516 100644
--- a/hotel/views/hotel_folio_views.xml
+++ b/hotel/views/hotel_folio_views.xml
@@ -34,7 +34,7 @@
                         <!-- states="sale" attrs="{'invisible': [('invoice_status', '!=', 'invoiced')]}" -->
                     <!-- <button name="print_quotation" string="Print" type="object" states="sent,sale"/> -->
                     <field name="state" select="2" widget="statusbar"
-                        statusbar_visible="draft,sent,sale,done" invisible="1"/>
+                        statusbar_visible="draft,sent,sale,done" />
                 </header>
 
                 <sheet>
diff --git a/hotel/views/hotel_reservation_views.xml b/hotel/views/hotel_reservation_views.xml
index d50458d53..871e6f252 100644
--- a/hotel/views/hotel_reservation_views.xml
+++ b/hotel/views/hotel_reservation_views.xml
@@ -16,7 +16,7 @@
         <field name="model">hotel.reservation</field>
         <field name="priority">20</field>
         <field name="arch" type="xml">
-            <form string="Reservation" >
+            <form string="Reservation">
                 <header>
                     <field name="splitted" invisible="True" />
                     <field name="tax_ids" invisible="1"/>
@@ -61,21 +61,21 @@
                         attrs="{'invisible':[('splitted', '=', False)]}"
                     />
                     <button name="open_master" string="Open Master" type="object" class="oe_highlight" icon="fa-file" attrs="{'invisible':['|',['parent_reservation', '=', False]]}" />
-                    <field name="state" widget="statusbar"/>
-
+                    <field name="state" select="2" widget="statusbar" statusbar_visible="draft,confirm,booking,done" />
                 </header>
-                <div class="alert alert-info" role="alert" style="margin-bottom:0px;"
-                     attrs="{'invisible': ['|',('shared_folio','=',False),('splitted', '=', True)]}">
-                         This reservation has other reservantions and/or services in the folio, you can check it in the
-                         <bold><button class="alert-link" type="object" name="open_folio" string="Folio Form"/></bold>
-                </div>
-                <div class="alert alert-warning" role="alert" style="margin-bottom:0px;"
-                     attrs="{'invisible': [('splitted','=',False)]}">
-                         This reservation is part of splitted reservation!, you can check it in the
-                         <bold><button class="alert-link" type="object" name="open_folio" string="Folio Form"/></bold>
-                </div>
-                <field name="shared_folio" invisible="1"/>
+
                 <sheet>
+                   <div class="alert alert-info" role="alert" style="margin-bottom:0px;"
+                        attrs="{'invisible': ['|',('shared_folio','=',False),('splitted', '=', True)]}">
+                            This reservation has other reservantions and/or services in the folio, you can check it in the
+                            <bold><button class="alert-link" type="object" name="open_folio" string="Folio Form"/></bold>
+                   </div>
+                   <div class="alert alert-warning" role="alert" style="margin-bottom:0px;"
+                        attrs="{'invisible': [('splitted','=',False)]}">
+                            This reservation is part of splitted reservation!, you can check it in the
+                            <bold><button class="alert-link" type="object" name="open_folio" string="Folio Form"/></bold>
+                   </div>
+                   <field name="shared_folio" invisible="1"/>
                     <div class="oe_button_box" attrs="{'invisible': [('folio_id','=',False)]}">
                         <button type="object" class="oe_stat_button"
                             icon="fa-file"
@@ -196,6 +196,7 @@
                             <field name="departure_hour"/>
                         </group>
                         <group colspan="4" string="Reservation Details" name="reservation_details">
+                            <field name="cancelled_reason" attrs="{'invisible': [('state', 'not in', ('cancelled'))]}"/>
                             <field name="nights"/>
                             <!-- TODO: How to filter to avoid show False (generic) pricelist board when exist a specific pricelist board¿? -->
                             <field name="board_service_room_id" domain="[
@@ -287,6 +288,8 @@
                                     <field name="date" />
                                     <field name="price" />
                                     <field name="discount" />
+                                    <field name="cancel_discount"
+                                       attrs="{'column_invisible': [('parent.state','!=','cancelled')]}" />
                                 </tree>
                             </field>
                         </page>
diff --git a/hotel/views/inherited_product_pricelist_views.xml b/hotel/views/inherited_product_pricelist_views.xml
new file mode 100644
index 000000000..4d2d87090
--- /dev/null
+++ b/hotel/views/inherited_product_pricelist_views.xml
@@ -0,0 +1,17 @@
+<?xml version="1.0"?>
+<odoo>
+
+    <record id="product_pricelist_view_form" model="ir.ui.view">
+        <field name="model">product.pricelist</field>
+        <field name="inherit_id" ref="product.product_pricelist_view" />
+        <field name="arch" type="xml">
+
+            <xpath expr="//field[@name='country_group_ids']" position="before">
+                <field name="pricelist_type" />
+                <field name="cancelation_rule_id" />
+            </xpath>
+
+        </field>
+    </record>
+
+</odoo>
diff --git a/hotel_channel_connector/views/inherited_product_pricelist_views.xml b/hotel_channel_connector/views/inherited_product_pricelist_views.xml
index 5f4394e36..4a12b3f05 100644
--- a/hotel_channel_connector/views/inherited_product_pricelist_views.xml
+++ b/hotel_channel_connector/views/inherited_product_pricelist_views.xml
@@ -21,10 +21,6 @@
                         confirm="Disconnecting will automatically delete the pricelist in the Channel. Do you want to proceed?"
                 />
             </xpath>
-
-            <xpath expr="//field[@name='country_group_ids']" position="before">
-                <field name="pricelist_type" />
-            </xpath>
         </field>
     </record>