Accounting Seed provides two options for calculating sales taxes: Accounting Seed (AS) Native Tax and Avalara’s AvaTax integration.
Accounting Seed (AS) Native Tax
The Built-in functionality of Accounting Seed (AS) Native Tax calculates tax on Billings, Payables, and Opportunities, and supports tax calculation for VAT and GST. This tool is free of charge as it is included in your subscription.
AS Native Tax functionality is different depending upon whether your organization has enabled Header Level Posting (HLP) or Line Level Posting (LLP). Under AS Native Tax HLP, a Tax Group provides the ability to calculate tax amounts at a line level instead of a summary tax total. The tax calculation will be performed on a Billing Line, a Payable Line, or an Opportunity Product Line record. AS Native Tax HLP uses Tax Groups and Tax Rates in the system to calculate tax.
Under AS Native Tax LLP, taxes are calculated and displayed as a summary tax total. The tax calculation will be performed on the sum of all Billing Lines, Payable Lines, or Opportunity Product Lines that have a taxable product. AS Native Tax LLP uses Product records as tax rates in the system to calculate tax and these are referred to as “Tax Rate Products.”
Avalara’s AvaTax integration
The Avalara’s AvaTax integration calculates sales tax on Billings and estimates sales tax on Opportunities. Maintaining Tax Groups/Tax Rates in Accounting Seed is not necessary when using AvaTax’s tax engine calculator. AvaTax uses Tax Codes, which can be added to a Product. For a list of Tax Codes, go to taxcode.avatax.avalara.com. Avalara can also help you with filing your taxes. This tool requires an additional fee that is billed based on usage. Please contact our sales department to find out more.
If a customer receives shipments at several locations - in different tax (and non-taxable areas), What is the best method to manage different tax rates for different billing addresses?
We recommend using child Accounts for the different locations and tying them all together with a parent Account.
Ok. And just to clarify - do you recommend using the child account as the main account only for the billing? Or all the way through from the Opportunity -> Sales Order (if there is one) -> Billing?
We would recommend using it for all related transactions, except maybe cash receipts.
If you view the opportunity related list on a parent account, does it show the opportunities of child accounts? Or do you lose that visibility from the parent account level?
What are the other benefits/cons of using it all the way through?
Most reports in Salesforce can be run on the account hierarchy to include parent and child accounts.
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