Void Tax on a Folio (Desktop)

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Path: Front Office > Cashiering > Guest Account > In-House Guests > Open a Folio

When tax appears in a portfolio, it is often automatically recorded as a secondary fee originating from another code. This tax is classified as a secondary posting, triggered by a sale such as a Room Charge or a taxable miscellaneous item. Consequently, attempting to void the tax as a standalone entry is not possible.

If your intention is solely to void the tax, signifying a desire to change the classification of a posted sale or code from taxable to non-taxable, you have two options. You can either input a tax adjustment code or adjust the Tax Exempt status in the reservation to indicate exemption. In either scenario, the charge must be voided and subsequently re-recorded without the associated tax. Furthermore, if needed, you can modify the relevant code in the Accounting Code Setup to apply changes to forthcoming sales.

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.

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