Path: Front Office > Cashiering > Guest Account > In-House Guests > Open a Folio
When tax is seen within a folio, it often has auto-posted as a sub-fee from another code. A tax is considered as a Secondary posting. It is posted based on a sale like a Room Charge or a taxable Sundry item. Based on this, tax cannot be voided as a single line.
If you need to void only the tax, meaning to change the status of a sale or code that was posted to instead be non-taxable, you can either post a tax adjustment code or you will need to update the Tax Exempt status in the reservation to be exempt. In both cases, the charge will have to be voided and reposted without the tax. Additionally, you can modify the code in question within Accounting Code Setup in the case of any future sale.
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 exempt is applied following a correction, it will NOT be recognized as a tax exempt sale and will not show on the Tax Exempt report.
Exemption has to be setup on the day of check-in and posted either during audit or using the Post room and tax button.
Void Tax on any other Sale
If the sale is setup 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 post 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 do 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 specially faster) to just post one adjustment for the whole amount.