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.
Setup
Install plugin
Setup > Plugin Store > AvaTax Integration
Connect and configure
After installing the AvaTax Integration plugin you need to configure the integration
Setup > Plugins > Installed Plugins > Configure
Enter credentials and click Test Connection
Username/Password: Provided during your AvaTax account activation process.
Company Code: Dropdown list of your configured companies.
Field
Description
Enabled
Turn on/off the AvaTax calculation service.
Commit Transactions
Enables tax document submission to Avalara’s AvaTax service for record keeping.
When this setting is enabled, transactions will be posted and committed to the AvaTax Admin Console.
Live Mode
Sandbox (Test) or Production (Live) account.
Enable Logging
Log detailed transaction activity for troubleshooting purposes. Enable only when instructed by support.
Validate Address before each Transaction request
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.
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.
Create AvaTax' Tax Code and 'AvaTax' Item Tax Option
Accounting > Tax > Tax Codes/Item Tax Options > +
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.
Assign an Avalara tax
To assign an Avalara tax-exempt category to a customer, go to Customers > Customer Record > Profile.
Use the ‘Tax Exemption Reason’ drop down and select the appropriate customer type letter code, then click Save.
Apply Exemption Certificate
If you would like to apply an Exemption Certificate, you can import the Customer from SalesOrder application to Avalara system using this action.
You can find this customer in the AvaTax Admin Console, then setup and apply the Exemption Certificate.
Assign an AvaTax Tax Code to an Item
Products/Services > Items > Edit > Sales/Prices tab > enter the AvaTax System Tax Code in the Ava Tax Product Category > Save
To see a listing of all available AvaTax System tax codes, click (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
Customers > Customer profile > Find > Shipping Addresses > Click a Shipping Address record > Click Validate Address.
Review the returned validated address, click Apply Verified Address to update the Shipment Address record with the returned address.
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.
When the response has been received, the system adds a new Tax item with a calculated Tax value.
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