A fee cannot be removed from a reservation, but you can adjust a line item in the guest folio to zero or a reduced amount.
This applies to a cancellation fee that has been automatically calculated based on the cancellation policy set for a listing, or an additional fee that has been added to a reservation.
If the fee is not reduced to a zero amount and there is still a retained payout, it will count toward the commission calculations and revenue-based analytics of the listing even if the reservation is canceled.