Void Tax on a Guest/Group Folio (Cloud)
Taxes in Visual Matrix are automatically posted as secondary transactions when a taxable charge—like Room and Tax or a taxable Miscellaneous item—is recorded. Because of this link, you cannot void or edit a tax line directly. This article explains how to handle tax voids and adjustments in different cases:
- Guest Folios: When voiding or adjusting a taxable charge.
- Group Folios: When tax originated from an individual guest folio.
- Non-Room Items: When tax applies to a taxable Miscellaneous posting.
- Extended Stays: When long-term exemptions apply automatically.
Path: Front Office > Cashiering > Guest Account > In-House Guests > Open a Folio
If you try to void the tax line only, the system will display an error message. This means the tax is a secondary posting. To remove it, you must void the primary charge (i.e., the Room Charge or taxable Misc item) instead.
Instructions/Overview
Voiding Tax on a Room Charge
- Highlight the room charge line in the folio.
- Click Tools → Void, enter a reason, and click Submit.
- The related tax lines will automatically void with the charge.
2. Go to the Reservation screen for the same guest.
3. Change the Taxable status from Taxable to Exempt.
Always change the exemption status before reposting the room charge. If you repost while the reservation is still marked taxable, the system will apply tax again.
4. Return to the folio and repost the Room Charge revenue using the Room and Tax button in the toolbox.
- Whether the room charge is posted manually or through the automatic nightly process, it will post without tax as long as the reservation is marked Tax Exempt.
- Even if the room is already checked out, the Tax Status can still be modified to apply the exemption and repost the charge correctly.
- When reposting a room charge for a prior date, it’s recommended to use the Reference field to note the original posting date or stay date for clear tracking in reports.
Applying a tax exemption after a correction will not be recognized as a tax-exempt sale and will not appear on the Tax Exempt Report. For the exemption to be properly tracked and reported, it must be set up on the day of check-in and the room and tax must be posted either during the audit or by using the Post Room and Tax button in the toolbox.
Voiding Tax in a Group Folio
How Room and Tax behaves in a Group Folio depends on the guarantee type applied to the group:
- If Room and Tax were posted to the Group Master Folio (because of the guarantee type), it must be voided on the Group Master.
- Then, change the reservation’s Tax Status to Exempt.
- Repost the Room and Tax from the Guest Folio — it will automatically transfer back to the Group Master once saved.
- If Room and Tax were posted to the Guest Folio, follow the same steps as described in the previous section (Voiding Tax on a Room Charge).
The posting path always follows the group’s guarantee type. Properties using “Master Pay All” guarantees will see Room and Tax originate in the group master, while “Individual Pay” setups post directly in each guest folio.
Changing the tax configuration of an item affects future postings only. It does not retroactively adjust existing folio transactions.
Voiding Tax on Non-Room or Miscellaneous Charges
In general, this situation should never occur. Any item other than a Room Charge is typically always taxable by design.
The tax status for each item is defined in its accounting code setup under Management > Accounting Settings > Accounting Codes. If a particular item should not be taxed, the only way to correct it is to update the accounting setup of that item—not by voiding or adjusting tax on the folio.
Example: If a “Parking Fee” or “Service Charge” is currently set as taxable but should be exempt, open its Accounting Code and uncheck the Taxable box. Future postings will follow the new setup automatically.
Room and Tax Credit for Extended Stays (Automatic Tax Exemption)
Some guests qualify for tax exemption after staying a specific number of nights—typically 30 consecutive days in many U.S. states.
If the guest’s exemption status wasn’t set at check-in, each night’s Room and Tax will post with tax until the qualifying day is reached.
The Room and Tax Credit feature automatically reviews the stay against the property’s tax exemption settings and posts a credit for all previously posted taxes once the threshold is met.
How It Works
The threshold is defined in Management > Property > Property Settings > Taxes.
On Day X + 1 (for example, Day 31), the system automatically credits all qualifying tax amounts retroactively.
The folio will display these credit lines, balancing prior nights that have been taxed.
This feature only applies to Room and Tax transactions.
- Credits are posted automatically—do not manually void prior tax lines.
- Verify your property’s tax parameters match local exemption rules.
Once the credits are applied, the total tax for the entire stay will show as $0.00, even though nightly postings initially included tax.
About Tax Adjustment Codes
Visual Matrix includes Tax Adjustment codes by default, but these are not the recommended shortcut for removing tax.
However, if you need to correct multiple nights or a large total of tax due to several taxable postings, it may be easier and faster to post one Tax Adjustment for the total amount rather than voiding each line individually.
Use with Caution: Tax Adjustments should only be used when you are certain the total amount and reporting impact are correct. Always verify your adjustment after posting to ensure accurate accounting and tax reporting.
Still need help with this topic?
Ask Yourself:
- Did I void or adjust the correct taxable charge?
- Did I check the Guest Folio (not the Group summary) when adjusting group charges?
- Did I verify whether the charge was Room and Tax or a Miscellaneous item?
- Was the reservation’s tax status (Taxable or Exempt) correct before reposting the charge?
- If the guest is checked out, did I remember that I can still modify the Tax Status before reposting?
- Did I check whether the folio was audited, settled, or closed before attempting the void?
- If I used a Tax Adjustment code, did I confirm the total amount and reporting impact afterward?
Support May Ask You:
- Which room/folio were you working in?
- What charge code triggered the tax?
- Did the tax void automatically or remain active?
- Were any errors or restrictions displayed?
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