Use this feature to setup the way you handle tax. By default, there are two options here based on Calculation Type with the option to add new methods, including the Avalara system:
Tax Collection by Tax Code or Schedules
This is the default option. When enabled, tax will be calculated using Tax Codes or Schedules set up in System Management and applied according to the ship to address of the customer or the order if it differs.
When using this method, the responsibility of maintaining correct tax rates according to location is on the user. There is no automation of maintenance for these rates.
Tax Collection by Manual Entry
When this option is selected, sales tax is not calculated on orders and must be added manually, generally by a CSR.