# Avalara ‘AvaTax’ Plugin

Avalara AvaTax is a cloud-based solution that automates transaction tax calculations and the tax filing process. It provides real-time tax calculations using up-to-date tax data from over 12,000 U.S. taxing jurisdictions and 200+ countries, ensuring accurate tax compliance based on the latest regulations.<br>

## Setup&#x20;

1. Install plugin&#x20;

<mark style="color:orange;">Setup > Plugin Store > AvaTax Integration</mark> <br>

2. Connect and configure

<figure><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdMQcHOqvOWRQ08bS0u4nG3bd3Vk_gklSIEEm9bAvhJy8ySFOmhad7seEw4oEUmOS6nNucWa7aKumU4RwKxHyvPHFPs9B3Du4EXwmUWl8It2qGoMiIVeigQPJyHoz1ePaJolJHF4g?key=O4v6uhEwhLYAB_QRxammQydt" alt=""><figcaption></figcaption></figure>

After installing the AvaTax Integration plugin you need to configure the integration

<mark style="color:orange;">Setup > Plugins > Installed Plugins > Configure</mark> <br>

3. Enter credentials and click Test Connection

**Username/Password:** Provided during your AvaTax account activation process.

**Company Code:** Dropdown list of your configured companies.

<figure><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXek6Yidu6vmhypXgIBgcbuIhDnaFF73wrGKL-cvnKsHJ_u2ZfN6T5XUpn1Qfl0y82I4FcrleSevBx36hqDs5Nij0mJ6sqVopY8Ho8HXSwDKlU3HF8Iw9hwKnbWEQY0ptZ3ngFP3uw?key=O4v6uhEwhLYAB_QRxammQydt" alt=""><figcaption></figcaption></figure>

| Field                                            | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| ------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Enabled                                          | Turn on/off the AvaTax calculation service.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Commit Transactions                              | <p>Enables tax document submission to Avalara’s AvaTax service for record keeping. </p><p>When this setting is enabled, transactions will be posted and committed to the AvaTax Admin Console.</p>                                                                                                                                                                                                                                                                                                                                                                         |
| Live Mode                                        | Sandbox (Test) or Production (Live) account.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| Enable Logging                                   | <p>Log detailed transaction activity for troubleshooting purposes. Enable only when instructed by support.</p><p><br></p>                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Validate Address before each Transaction request | <p>Address Validation should typically be performed on the Customer, Shipping, Billing, Contact, or Warehouse pages. Once validated, these addresses can be used in transactions without needing further verification.</p><p><br></p><p>Enabling this option forces the system to validate all addresses directly from the transaction before sending it, even if they were manually edited on the transaction page. However, this process takes additional time and increases the load on Avalara services. For this reason, enabling this option is not recommended.</p> |

4. Create AvaTax' Tax Code and  'AvaTax' Item Tax Option

<mark style="color:orange;">Accounting > Tax > Tax Codes/Item Tax Options > +</mark>

Ensure that the system includes the 'AvaTax' Tax Code and/or 'AvaTax' Item Tax Option. These codes determine whether a document or line item should be sent to Avalara for tax calculations.

If these codes are missing, please create them to ensure proper tax processing.

![](https://lh7-rt.googleusercontent.com/docsz/AD_4nXdlpHddp5IGHSl_w9RWNHFwBZ-RLydAnZVFusA_x0838yMNRHuVkDF7tK203UnCKpbkqBikFHAWnnFJjBa8DD3lonlC7omZeibydIbvouuPtX3guc4xJTQ-zuuFLpZWG4H8F568zA?key=O4v6uhEwhLYAB_QRxammQydt)

<br>

5. Assign an Avalara tax&#x20;

To assign an Avalara tax-exempt category to a customer, go to <mark style="color:orange;">Customers > Customer Record > Profile.</mark>&#x20;

Use the ‘Tax Exemption Reason’ drop down and select the appropriate customer type letter code, then click Save.

<figure><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcK67gV1g7qTDuxBNZ8yxyfZL2GjSf9mXv-HQPu3NoPvc-Vsqu9523d6u-6_JE2BRkyFctKYiB-au73LQ9mcPcbWqjkaVys47yJC23JseYTRJDTa5i3s2qm6tpjW9sWcFSs52SL5g?key=O4v6uhEwhLYAB_QRxammQydt" alt=""><figcaption></figcaption></figure>

### Apply Exemption Certificate&#x20;

If you would like to apply an Exemption Certificate, you can import the Customer from SalesOrder application to Avalara system using this action.

<figure><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdtMYHjzio-kY6dHhBBMmXOhRGtkvfseNxDtFzdfT6SfcJJuPiH9i5LYjscV4tKbGu2dir6MBBEdXiMXfLupvTNpIYx5cs1M_Kwt5OxlKwHzBh5q_L3lPwhK-wb2b72-inKJpWWmw?key=O4v6uhEwhLYAB_QRxammQydt" alt=""><figcaption></figcaption></figure>

You can find this customer in the AvaTax Admin Console, then setup and apply the Exemption Certificate.&#x20;

### Assign an AvaTax Tax Code to an Item

<mark style="color:orange;">Products/Services > Items > Edit > Sales/Prices tab > enter the AvaTax System Tax Code in the Ava Tax Product Category > Save</mark>

<figure><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXeB8iMxe0ay9wwjOqyWBVhv83aFa9IeQLpkZScEgs6xlhQamY2z4li9-rcOTarAkp1al2mWUNZr1HWcTULb7cYtIqYn-REo5bN3s2_JSNl3UREAkcEH1XTQbci9PgzL5YbMyB9roQ?key=O4v6uhEwhLYAB_QRxammQydt" alt=""><figcaption></figcaption></figure>

To see a listing of all available AvaTax System tax codes, click ([taxcode.avatax.avalara.com](http://taxcode.avatax.avalara.com/)).

### Validate a customer address

Customer addresses can be stored in several locations, including:

* Customer Page (rarely used)
* Shipping Address (Ship To)
* Billing Address (Bill To)
* Contact
* Warehouse (Ship From)

Each of these records has a dedicated address section and includes an Address Validation action. Below is an example of how this appears for a Shipping Address

<mark style="color:orange;">Customers > Customer profile > Find > Shipping Addresses > Click a Shipping Address record > Click Validate Address.</mark>

Review the returned validated address, click Apply Verified Address to update the Shipment Address record with the returned address.

<figure><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdst9JTn3yUj8SRJJYfCvwWxn4J_JH7o24FBn6-WGuGYhP3J9py8t-nG2t3ATiSUkiiYj3GAThmjQd1wIlwsjPjnU_vaUEmEA7_7MUA1dz2n1rEvaDZivFkX6PIzDRXL_pxuF_oYg?key=O4v6uhEwhLYAB_QRxammQydt" alt=""><figcaption></figcaption></figure>

### Transaction Tax Calculations

AvaTax Integration plugin allows users to automatically calculate taxes for the following documents:

* Sales Order
* Sales Invoice
* Cash Sale
* Sales Credit Note
* Sales Refund

After the document has been saved, the system will send the request to Avalara service to calculate the transaction tax.

<figure><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXew3gc3BQnIp96SMGZXFj-E0M2CgzPUaUM1FXA6Yob6h4_2BXG50MoS8cCjyYF9Kj7uBAHWqKGMVsIZSOF9UzNb5KSwXenv6v6eXRWC33arQNqpz5VF7DlbKstjgiNd1zmvw4Y4iA?key=O4v6uhEwhLYAB_QRxammQydt" alt=""><figcaption></figcaption></figure>

When the response has been received, the system adds a new Tax item with a calculated Tax value.

<figure><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfkhMd6D50lZMPZwWCV-LgTbyUwLogGDXOFgZOH4m7IJcvQZm_JSXdGDB3to61mYnX_G58phIc2d1RNZlYjTGZXryZzOWT5hLiicvEH7AeSNeYAT5S55-fEsg43jwNHVKtpnYTwBg?key=O4v6uhEwhLYAB_QRxammQydt" alt=""><figcaption></figcaption></figure>