Avalara AvaTax for Enterprise

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Configuration Guide

Avalara AvaTax is a cloud-based solution automating transaction tax calculations and the tax filing process. Avalara provides real-time tax calculation using tax content from more than 12,000 US taxing jurisdictions and over 200 countries, insuring your transaction tax is calculated based on the most current tax rules.

Connect to AvaTax

To configure a BirdDog website to use AvaTax, you need:

  1. Go to System Management > System > Tax Service Accounts
  2. Click Add Report
  3. Enter your Avalara AvaTax Credentials
    • Description: Not required. For this example, we plugged in ‘AvaTax tax service.’
    • Service: AvaTax should be selected in this dropdown list.
    • Account Number: Provided during your AvaTax account activation process.
    • User Name: Provided during your AvaTax account activation process
    • Password: Provided during your AvaTax account activation process
    • License: Provided during your AvaTax account activation process
    • Company Code: Company profile identifier in the AvaTax Admin Console. This is provided by Avalara and will shown on the AvaTax Admin Console.
    • Test Account: Check this box if you are using a test account.
    • Send transactions for customer where they have a valid sales tax exemption certificate: Without this checked, transactions for customers with a valid sales tax cert will not be sent to Avalara.
    • Only Send Transactions For Taxable States: With this checked, orders generated that do not have states marked as taxable will not be sent to Avalara; a state is "taxable" by having an actual tax code.
    • Tax Service Code Default: Default Code to use for items that do not have a TaxServiceCode set for tax services like Avalara AvaTax to assign them to the appropriate tax group.
    • Tax Service Code for Freight: Code to use when sending freight charges to tax services like Avalara AvaTax to assign it to the appropriate tax group.
    • Tax Service Code for Miscellaneous: Code to use when sending miscellaneous charges to tax services like Avalara AvaTax to assign it to the appropriate tax group.
  4. Click the Test button. Resolve any observed errors.
  5. Once you are satisfied with your setup, click Save.

Set AvaTax as your tax service

To ensure a BirdDog website uses the above account globally, you will need to:

  1. Go to System Management > System > Tax Service Accounts
  2. Click on the Select as Tax Calculation Method / Service button on the right of the tax service account you just created above. When it is set as the global service, this icon will change to a green checkmark.

Setup a Tax Code with Tax Rate of 0%

  1. Go to System Management > Accounts Receivable > Tax Codes
  2. Click on Add Tax Code
  3. For Code, we generally recommend AVA. Description should obviously be something recognizable. The percentage should be set to 0. The checkboxes for Is this Tax Taxable, Tax Freight, and Tax Miscellaneous Charges should be unchecked. Finally, the Account No should be the appropriate general ledger account you use to book the sales tax liability.
  4. Note that, outside the Canada tax schedule, using tax schedules are unsupported.

Assign an Avalara Entity Use Code to a customer

  1. Click Customer Service > Select Customer
  2. Enter a Customer Number or enter the Customer's Name and click on Enter. Select the Customer.
  3. While on the Customer Service page, click on Customer Info.
  4. This is a Customer View. You can't make any changes to the customer here. Click on the Edit Customer Info image button.
  5. You are now on the Customer Info page where you can edit the customer's data.
  6. Click on Financial
    • In the Tax Exempt No field, enter the customer’s exemption number.
    • In the Tax ID field, enter the customer’s tax ID. Typically used for VAT Registration ID.
    • In the Tax Service Entity Use Code field, input the entity or use code for tax services. Used to explain in more detail how a transaction should be taxed.
  7. Click Save.

 Assign an AvaTax Tax Service Code to an Item

  1. Click on Warehouse Management > Items
  2. Enter an Item Number and click on <Enter>. Click on Edit.
  3. This is the Item Edit page.
  4. On the Item Setup tab, enter the applicable AvaTax System Tax Code in the Tax Service Code field.
  5. Click on Save and Close Item image button.
  6. To see a listing of all available AvaTax System tax codes, click (http://taxcode.avatax.avalara.com).