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.
If the tax exemption is applied following a correction, it will NOT be recognized as a tax-exempt sale and will not show on the Tax Exempt report.
The exemption has to be set up on the day of check-in and posted either during the audit or using the Post room and tax button.
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.
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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