Avalara

Overview

Avalara AvaTax is a cloud-based solution that automates transaction tax calculations and tax filing. It provides real-time tax calculations using tax content from over 12,000 U.S. taxing jurisdictions and 200+ countries, ensuring compliance with current tax rules. By integrating AvaTax with Zuper, businesses can eliminate manual tax calculations, automatically retrieve accurate tax rates, and apply exemption rules for transactions.

Prerequisites

• Active Account: An active Avalara AvaTax account is required.
• Geographic Restriction: Avalara integration is available only for organizations in the U.S.

Installing AvaTax in Zuper

To enable the AvaTax integration, contact Zuper’s support team at [e-mail] for initial configuration. Once configured, follow these steps:

1. Go to Settings > Configuration Settings > Quotes and Invoices > Taxes.
2. Click Use Avalara on the Taxes configuration page.
3. Enter AvaTax Credentials:

   • Account Number: Provided during AvaTax account activation.

   • License Key: Provided during AvaTax account activation.

   • Company Code/ID: Your company identifier in the AvaTax Admin Console.

   • Environment: Select either “Sandbox” or “Production.”

     Note: Zuper’s sandbox environment can only connect to Avalara’s Sandbox account.

   • Commit Documents: Enable to submit tax documents to AvaTax for record-keeping. If disabled, sales tax is retrieved but not recorded in AvaTax for compliance reporting.

4. Click Continue to proceed further.

5. In the Avalara Connection dialog box, select the exact address using the Pick from Map button.

Note: The address, country, and AvaTax credentials will be shared with Avalara during setup.

6. Click the “Submit” button to complete the settings. 

Configuring Organizations, Customers, and Properties

To ensure accurate tax calculations, configure the following modules with valid addresses and tax exemption details:

Organizations

1. Navigate to Organizations > + New Organization.
2. Enter customer details for the organization.
3. Add valid service and billing addresses using the address picker to ensure accurate geolocation data for Avalara.
4. For tax-exempt organizations:
   • Mark as Tax-Exempt.
   • Select the appropriate Entity Code (e.g., for religious or charitable organizations) or provide an Exemption Number issued by the government.
5. Click Save.

Customers

1. Navigate to Customers > + New Customer.
2. Enter customer details.
3. Add valid service and billing addresses using the address picker.
4. For tax-exempt customers:
   • Mark as Tax-Exempt.
   • Select the appropriate Entity Code or provide an Exemption Number.
5. Click Save.

Properties

1. Navigate to Properties > + New Property.
2. Enter property details.
3. Add valid service and billing addresses using the address picker.
4. For tax-exempt properties:
   • Mark as Tax-Exempt.
   • Select the appropriate Entity Code or provide an Exemption Number.
5. Click Save.

Notes:

• Taxes are calculated based on the property’s address if the organization, customer, and property are taxable.
• Accurate geolocation data from the address picker is critical for Avalara to fetch the correct tax details.

Configuring Parts and Services

To apply the correct tax codes for items:

1. Navigate to Parts and Services from the left menu.
2. Select a product to open its details.
3. Click More Actions > Edit Parts/Services.
4. Enter the applicable AvaTax System Tax Code in the Tax Code field.
   • Note: View available tax codes at taxcode.avatax.avalara.com.
5. Click Save.
6. Tax Calculation: Avalara combines the tax code and the customer’s address to determine taxability (exempt, partially taxable, or fully taxable).the submission of
7. Optional: Add or edit tax codes for items directly in the Tax Code field when creating a transaction.

Managing Transactions (Quotes and Invoices)

When creating quotes or invoices, AvaTax automates tax calculations:

1. Navigate to Quotes > + New Quote or Invoices > + New Invoice.
2. Fill in the required details.
3. Add discounts or fees via:
   • Settings > Configuration Settings > Parts and Services > Discounts and Fees, or
   • Directly on the parts and services in the transaction.
4. Save the transaction as a draft to trigger AvaTax to:
   • Identify tax applicability for parts and services in the customer’s geographic area.
   • Assess the customer’s taxability.
   • Retrieve accurate tax rates based on local governing authorities.
5. Note: Taxes are applied based on the billing or service address configured in Organization Settings > Misc Settings > Tax Settings.

6. Discounts:
   • Transaction-level discounts are applied proportionately to all items.
   • Line-item discounts are applied only to specific items.
7. Errors: Any errors returned by Avalara will be displayed on the transaction details page.

Disabling AvaTax Integration

To disable the AvaTax integration:

1. Navigate to Settings > Configuration Settings > Quotes and Invoices > Taxes.
2. Select the Deactivate option.
3. Confirm the deactivation to disable the integration.

Integrating Avalara AvaTax with Zuper enables automated, accurate, and compliant tax calculations, reducing manual effort and ensuring seamless tax management.