Void Tax on a Folio (Desktop)

Void Tax on a Folio (Desktop)


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 on the left.



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.
If it is not, then you can change the tax status in the accounting code setup screen: Setup a New Accounting Code (Desktop)
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.

    • Related Articles

    • Void a Transaction in a Folio (Desktop) 🎥

      QUICKLINKS: TUTORIAL VIDEO | CLOUD PMS Path: Front Office > Cashiering > Guest Account/Group Account/House Account > Open a Folio 1. Highlight the line you wish to void. 2. Click Void from the left menu. 3. Enter a Reason for the Void and click OK. ...
    • Post Room and Tax on an Individual Folio (Desktop) 🎥

      QUICKLINKS: TUTORIAL VIDEO | VM UNIVERSITY COURSE | CLOUD VERSION Room and Tax is automatically posted during the night audit. Although you have the possibility to manually post (A) this daily charge, you can also add some Room and Tax charges (B) ...
    • Make a Reservation Tax Exempt (Desktop)

      QUICKLINKS: VM UNIVERSITY COURSE | CLOUD PMS Path: Front Office > Reservations > Search and Open the Reservation 1. Click Exempt in the Tax Status field under the Rate Information section.  2. Check any tax/fee you need to exempt and enter the ...
    • Night Audit Tax Exempt Report (Desktop) 🎥

      QUICKLINKS: VIDEO | CLOUD VERSION | REPRINT NA REPORTS | ALL VM REPORTS The Tax Exempt report shows the total Revenue that was exempted, the amount of tax posted, and the type of exemption (Partial or Exempt). A tax-exempt room revenue will only show ...
    • Night Audit Room & Tax Report (Desktop) 🎥

      QUICKLINKS: VIDEO | CLOUD VERSION | REPRINT NA REPORTS | ALL VM REPORTS The Room & Tax report shows the amount of room and tax that was posted per room type. Path: Accounting > Night Audit > Reprint Reports > Room and Tax. Generate report 1. Choose ...