Use Avalara Integration

1 Setup
2 Sales Order
3 Sales Invoice
4 Test Transactions
5 Verify Avalara Tax Calculations
6 How to Cancel Tax after it is Reported

Setup

On the Account page, populate these fields:

Entity/Use Code
Account Number
Ship-to Address

On the Item page, populate the AvaTax Tax Code.

When using AvaTax, any item not mapped to a specific Tax Code is treated as a taxable product rather than a non-taxable item. To ensure non-taxable items are correctly identified, they must be mapped to the appropriate Tax Code. AvaTax’s default Tax Code, P000000, is applied to any item that lacks a specific Tax Code. This default Tax Code will result in the item being taxed at the tangible personal property tax rate, which is generally the highest rate within a tax jurisdiction.
For non-taxable items, such as Z-Prepayment, the correct code to use is ON030000.

If you prefer not to send specific items, such as Z-Prepayment, to Avalara and want to exclude them from the total sales amount reported by Avalara, select the Do Not Integrate with Avalara option on the item page.

Sales Order

GoldFinch will automatically calculate Sales Tax using Avalara on the Sales Order when an order is created or updated.

You can click the Calculate Tax button to calculate tax manually.

GoldFinch populates the Sales Tax Amount on the Sales Line and then automatically updates the GoldFinch Tax, Tax %, and Line Amt Inc. Tax fields.

Sales Invoice

GoldFinch will automatically calculate Sales Tax when an invoice is created or updated.

GoldFinch will call the Avalara Commit Tax function to commit sales tax when posting a Sales Invoice.

When unposting a Sales Invoice, GoldFinch will call the Avalara Cancel Tax function to uncommit sales tax.

There are 3 buttons available for manual clicking:

Calculate Tax - Works for all users.
Commit Tax - Only works for users with Allow AvaTax Override permission set up in User Setup table.
Cancel Tax - Only works for users with Allow AvaTax Override permission set up in User Setup table.

Test Transactions

Sales Order - Calculate Tax
Return Order - Calculate Tax
Sales Invoice - Calculate, Post, and Cancel Tax
Sales Credit Memo - Calculate, Post, and Cancel Tax

Verify Avalara Tax Calculations

Log in to your Avalara environment.

How to Cancel Tax after it is Reported

To get a refund of Sales Tax, you must create a return order and then create a credit memo or a credit memo directly.

Do not Unpost the Sales Invoice.

GoldFinch Cloud Solutions