Void Tax on a Guest/Group Folio (Cloud)

Void Tax on a Guest/Group Folio (Cloud)


When tax appears in a folio, it's often automatically recorded as a secondary fee linked to another code. This tax is categorized as a secondary posting, triggered by a transaction like a Room Charge or a taxable miscellaneous item. Consequently, trying to void the tax as a separate entry is not feasible.
If your intention is solely to remove the tax, indicating a desire to change the classification of a posted sale or code from taxable to non-taxable, you have two options. You can either use a tax adjustment code or adjust the Tax Exempt status in the reservation to indicate exemption. In both cases, the charge must be voided and then re-entered without the associated tax. Additionally, if necessary, you can modify the relevant code in the Accounting Code Setup to apply changes to future transactions.
Path: Front Office > Cashiering > Guest Account > In-House Guests > Open a Folio

If you try to void the tax only, an error message will show:

Void Tax on a Room Charge Revenue

1. Void the Entire Room Charge which will void the tax with it 




2-4. Go to the reservation and change the status from Taxable to Exempt.




5. Go back to the folio and repost the room charge revenue using the room and tax button from the toolbox.


Even if the room is already checked out, the Tax status can still be modified.
Applying tax exemption after a correction won't be recognized as a tax-exempt sale and won't appear on the Tax Exempt report. The exemption must be set up on the day of check-in and posted either during the audit or using the "Post room and tax" button for it to be acknowledged as tax exempt.

What about a Group folio?

In both Guest and Group folios, the fundamental concept remains the same - a folio linked to a reservation. If taxes on a group folio need to be exempted, it's likely because taxes were not exempted in the reservation and the guarantee type was set up as "Room & Tax" or "All Charges". However, the underlying principle remains consistent. Since charges transfer from individual folios to the group folio only when reservations are checked in, adjustments must be made on the group side:
- Open the group reservation and change the tax status to "Exempt".
- Navigate to the group folio and void all room charges, which will also void the taxes (secondary charges).
- Repost the RC code, once for each voided room that requires charging, and input the rate. As the group reservation is now set up to be exempt, the RC will post without tax.
- Finally, adjust any previously posted payments as necessary.
Applying tax exemption after a correction won't be recognized as a tax-exempt sale and won't appear on the Tax Exempt report. The exemption must be set up on the day of check-in and posted either during the audit or using the "Post room and tax" button for it to be acknowledged as tax exempt.

Void Tax on any other Sale

If the sale is set to be taxable, you need to know if the sale is supposed to be taxable.
If it is not, then you can change the tax status in the accounting code setup screen: Setup a New Accounting Code (Cloud | Video)
Once the accounting code is corrected, open the folio, void, and repost the sale fee. It will now be posted as a non-taxable item.

What about Tax Adjustment codes?

Although they do exist by default in Visual Matrix, it is not the shortcut we advise to use.
But if you have several nights or an important amount of taxes to void due to multiple charges, it might be easier (and especially faster) to just post one adjustment for the whole amount.

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