Avalara, an end-to-end sales tax compliance solution, is integrated into Accounting Seed. You can use Avalara to estimate sales tax on Opportunities and calculate sales tax on Billings. Once Avalara is setup the Tax code field on the product will drive the correct tax calculation along with the customer's address.
Set up Avalara
- Create an Avalara account at avalara.com.
- Click Accounting Home and under General Ledger Setup click Accounting Settings.
- On the Configuration Settings page, click the Tax Settings tab, and then click Edit.
- On the Tax Settings page, adjust the following settings:
- Under Available Sales Tax Calculation Options select Avalara.
- Under Sales Tax Calculation Settings choose one of the following to determine the correct sales tax calculation for your organization: (Please consult with Avalara Support to determine the correct tax configuration to use for your company.)
- Point of Sale, the physical location where a purchase of goods takes place. The origin and destination addresses are set to the Avalara Origin Address defined under Accounting Settings > Tax Settings. This is typically used in a retail environment.
- Point of Destination, the location where the buyer takes possession of the item sold. The origin and destination addresses are set to the Shipping Address on the Billing.
- Shipment, the location where the item is shipped from. The origin address is set to the Avalara Origin Address defined under Accounting Settings > Tax Settings and the destination address is set to the Shipping Address on the Billing.
- Under Avalara Credentials, enter your Avalara Account ID, Avalara License Key, and Company Code. This is available in your Avalara Account created in Step 1.
- Under Avalara Endpoint, select your Avalara sandbox or Avalara production account. Choose sandbox to test this feature until you are ready to deploy to your production environment.
- Under Avalara Configuration
- Click the search button to select an Avalara Sales Tax GL Account. This is typically a liability account used to track the liability that you owe for taxes.
- Click the Avalara Tax Product search button and select Taxable Product. Make sure to add this to your price book if you are calculating taxes on the Opportunity. This is a generic product used throughout the system to capture all types of taxes.
- The Avalara Origin Address is your address as entered in Avalara. This is typically your corporate address.
Assign an Avalara Tax Code to a Product in Accounting Seed
- Click Accounting Home and under Orders & Inventory click Products. Select a product and then click Edit.
- Update the value for Tax Code. The tax rates or codes assigned to various products may differ by product type. For a list of tax codes, go to taxcode.avatax.avalara.com. Please note, if you do not see the Tax Code field you may need to add it to the page layout. See notes under Fuchsia Release, below.
- In another browser window, log into your Avalara account and copy the appropriate tax code.
- Return to Accounting Seed and paste the tax code into the Tax Code field on the Product page.
Calculate Tax on a Billing
- Click Accounting Home and under Cash In click Billings.
- Optional Step - Validate Address. If you have recently moved to a new address or the customer has recently updated their address, click the Validate Address button before calculating taxes. This will allow you to confirm the address is entered correctly and will work with Avalara. Please note, this button may need to be pulled into your page layout. See notes under Fuchsia Release below.
- Click the Calc Tax button on the Billing's menu bar.
- On the Billings Sales Tax page, click the Calc Tax button.
- The Total Tax amount will be calculated and appear on the interim screen.
- Click the Calc Tax button on the interim screen. A Sales Tax line will be created on the billing and an uncommitted tax transaction will be created in Avalara.
Estimate Taxes on an Opportunity
- Click Accounting Home and under Cash In click Opportunities.
- Select an Opportunity or click New Opportunity.
- Click Add Products and on the next page, select a product to add to the Opportunity.
- On the Edit Selected Products page, add Quantity, Sales Price, Date, and Line Description and then click Save.
- On the Opportunity page, click Calc Tax to estimate taxes.
- When you create a billing, the tax line will automatically appear on the Billing. Upon posting, the Billing will commit the tax transaction in Avalara.
- Avalara is now fully integrated with Accounting Seed.
- Avalara allows you to estimate sales tax on Opportunities and calculate sales tax on Billings.
- Configuration Change:
- Enable Avalara Sales Tax in Accounting Settings > Tax Settings.
- Add the Tax Code field on the Product page layout.
- Add the Calc Tax button on the Opportunity page layout.
- Add the Validate Address button on the Account page layout. If needed, add the VAT Business Identification Number, the Exemption Number, and the Entity Use Code fields on the Account page layout.
- Add the Sales Tax field to the Billing page layout. If needed, add the Validate Address button on the Billing page layout.