Sales Tax - AvaTax Integration Setup
Introduced in AV 2017.0.3.0, August 2017
Contact AcctVantage Support if you're interested in setting up an account with AvaTax.
Do you need to collect Sales Tax? Do you worry about getting it right? Would you like to save time in reporting and remitting your tax liability? If you've answered "yes" to any of the above, then our AvaTax integration is meant for you.
AvaTax is a web based service that validates, calculates and reports on anything and everything to do with Sales Taxes throughout the US. Your AcctVantage system can seamlessly integrate with AvaTax to ensure proper calculation and reporting of sales taxes for any situation.
Set up the AvaTax Integration in AcctVantage
Create a Tax Area
Create an "AvaTax" Tax Area. Tax Areas are create in the General Ledger > Tax Areas screen. We will use a single AcctVantage Tax Area to communicate with Avalara; the detailed reporting of tax by jurisdiction will be done via the AvaTax web service.
There is no need to delete existing Tax Areas and no need to change the Tax Area assignments on your Client or Ship To records. Once the integration is enabled, AcctVantage will ensure that the AvaTax system handles all sales tax activity.
System Setup settings
Here, you will enter your AvaTax Account information in AcctVantage. Go to the Administration > System Setup screen and select AvaTax from the drop-down.
On the left-hand side of this window, enter:
- Account Number (assigned to you by Avalara)
- License Key (assigned to you by Avalara)
- Company Code (unless you have multiple companies leave this set to DEFAULT)
- API URL: https://avatax.avalara.net/
After you've entered the above info, click the Test Connection button to enable the service. The AvaTax Enabled box will automatically be checked when the connection is successful.
On the right-hand side of this window, enter:
- Tax Area Mapping: Enter the AvaTax Tax Area that you created above.
- Disable Document Committing: (Not recommended) Check this box if you want to have AvaTax calculate sales tax, but NOT report the sales tax.
- Enable AvaTax Communication Logging: (Recommended) Check this box to enable AcctVantage to maintain a log of all AvaTax communication for the prior 14 days.
That's it! Once you have established the connection, and enabled the service your Quotes and Orders will beging using AvaTax to validate sales taxes automatically.
AvaTax requires a valid Origin (i.e. Ship From) Address in order to calculate tax. There are some tax jurisdictions where tax is calculated based on the Ship From address so you'll need to make sure you have valid addresses for each of your Warehouses.
Go to Warehouse Management > Warehouses and click Show All. Open each Warehouse record and confirm there is a valid address.
Client Exceptions (Optional)
AvaTax Customer Code
AvaTax has a provision to handle exceptions for individual clients. Please refer to the AvaTax documentation for use cases. You can apply the AvaTax assigned customer number to AcctVantage Client records and Ship To Address records to ensure these special use cases are enforced. A Ship To Address assignment has priority over the default Client assignment when processing the tax.
Tax Exempt Number
If you have a Tax Exempt Number recorded on the AcctVantage Client/Sales Master record, that number will be passed to AvaTax for processing as an exempt sale. Please review the AvaTax documentation for any special requirements regarding tax exempt reporting that you wish to enforce. AcctVantage simply passes the number you've provided; AvaTax takes it from there.
When using AvaTax, this Tax Area on the Client/Sales Master screen is not relevant in any way. You may wish to record the area for your own reporting, but it will have no impact at all on AvaTax processing or reporting. There is no need to delete existing Tax Areas and no need to change the Tax Area assignments on your Client or Ship To records. Once the integration is enabled, AcctVantage will ensure that the AvaTax system handles all sales tax activity.
Ship To example
Product Assignments (Optional)
Map items to tax codes to tell AvaTax which tax rules to use when processing transactions. Items that aren't mapped will be taxed as tangible personal property.
If there are items that you don't want to be taxed (such as freight/shipping costs) or items that should be taxed at a different rate, you will need to enter an exception into the AvaTax Tax Code field on the Product record.
See the tax code list attached below. This is current as of 02/04/2020. Visit your AvaTax account to download the most up-to-date list.