Sales Tax - AvaTax Processing
Once the AvaTax integration has been setup, the process is essentially automatic. Sales Orders will be calculated and transmitted to AvaTax for reporting without the user needing to interact in any way.
The purpose of this article is to shed light on when AcctVantage communicates with AvaTax and how that translates to your tax reporting. AvaTax limits the number of "calls" to their service for each transaction so we've designed AcctVantage to minimize the communication while stil providing a robust experience.
AcctVantage first communicates with AvaTax when an Order is marked as "Committed". AcctVantage sends to AvaTax details about the Order including Ship To / From, Product info and Client info.
AvaTax returns to AcctVantage an overall tax rate for the order, including special curcumstances for product and/or client exceptions.
When Qty, Price or other details of a line item change after this point AcctVantage will use the AvaTax rate established when the Order was marked "Committed" to calculate the new tax total.
When an Order is marked Shipped/Invoice AcctVantage will again send full detail of the Order to AvaTax and verify or recalculate the Sales Tax totals.
Under normal circumstances this is the final opportunity to modify the sales tax for an Order.
During the Posting process, AcctVantage will make a final call to AvaTax to "commit" (their term) the Invoice to the AvaTax system. At that point, AvaTax takes over the reporting of taxes for your various jurisditions.
At any time, you may force AcctVantage to call the AvaTax service by clicking the "Recalc Totals" button.
For example, if you change the Ship To address after marking the Order committed, Avatax will not be aware of that change until marking the Order Shipped. In that case, a click of the Recalc Totals button would force AV to send the new Ship To address to AvaTax and recalculate.
Use AvaTax to Calculate, But Not Report on Sales Tax
You may wish to utilitze the AvaTax service to calculate your sales taxes, but not report them. To do so, check the "Disable Document Commitment" check box on the Administration > System Setup, AvaTax screen.
We do not recommend using this feature for regular operations. All AvaTax calculated tax liability is posted to a single Tax Area in AcctVantage, so if you collect in more than one location your reporting will be very difficult. The integration was written and intended to pass the tax reporting burden to the web service.
A reasonable use of the "Disable Document Commitment" checkbox would be testing to ensure AvaTax is returning valid response.
AvaTax Communication Log
AcctVantage can maintain a Log of all comunication with AvaTax for 14 days. To enable logging, select the check box on the Administration > System Setup, AvaTax screen.
Access to the Logs is via Administration > System Logs. Search for Log "Type = AvaTax".
Each Log entry contains the full API request and response content for each communication with the AvaTax service.