Standard ERP Integration with Avalara Sales Tax Setup and Workflow (USA and Canada) User Guide

Transcription

1 Standard ERP Integration with Avalara Sales Tax Setup and Workflow (USA and Canada) User Guide 8.4. Mac OS July 2017

2 Table of Contents Introduction... 2 Getting Started... 2 Setup in Avalara... 2 Setup in StandardERP... 2 How AvaTax Works with StandardERP...10 Example 1: Creating a Quotation and an Invoice...10 Example 2: Creating an Invoice with Items from Diferent Locations and Freight Charges...16 Example 3: Voiding an Invoice...19 Troubleshooting Standard ERP Integration with Avalara Sales Tax 1/22

3 INTRODUCTION Avalara uses cutting edge technology to automate the processing of sales tax and transaction tax compliance. Avalara s sales tax management software, Avatax, yields real time tax calculations and tax returns in the US, Canada and several other countries around the world. The main beneft of using tax integration with Avalara is its simplicity to setup and use. All tax calculations are done in the product Avatax and imported into StandardERP. Reporting to tax authorities is done trough Avalara, which takes the burden off of your business. From Version 8.4 and above, we have fully integrated with Avatax so that your company will be able to reap the benefts of this functionality. GETTING STARTED Setup in Avalara 1. Create an account with Avalara at 2. Select the product AvaTax. 3. Enter company information. 4. Validate your address. 5. Ensure that rounding level is set to line. Setup in StandardERP 1. From the Navigation Center, click the Switch Module icon and select General Ledger Module. Select Settings and then select Tax Integration Avalara. We recommend that this setting is available only to Admin users. This can be setup up in Access groups by selecting System Module, selecting Settings and then Access Groups. Standard ERP Integration with Avalara Sales Tax 2/22

4 2. Enter in the following details: a. Host: a.i. a.ii. sandbox-rest.avatax.com (for testing) rest.avatax.com (for live) b. Username: username in Avalara c. Password: Password to login in Avalara d. Company: Company code that was registered in Avalara e. Def. Outp A/C: Paste special (cmd + enter) to the accounts register. e.i. Select output tax account used when creating TAX codes. Make sure this feld is flled in. f. Def. Inp A/C: Paste special (cmd + enter) to accounts register. f.i. Select input tax account used when creating TAX codes. Make sure this feld is flled in. g. Enable Integration: Check this feld This check box must be selected for tax calculation to be done through Avalara. h. Log Communication: Check this feld This check box must be selected to log on server all requests and replies from all clients. 3. Select Save on the window and then select Test Connection. You should see a pop up window indicating that the connection is successful. Push this button to test the connectivity between company server and Avalara. 4. From the Navigation Center, using the Switch Module button, select General Ledger module, select Settings and then select Tax Templates. On the browse window, select Create and then select New Tax Templates. 5. In the Code feld, enter the tax code that will be used with Avalara. This tax code would be used for tax templates that will be assigned to an item or item groups. You can fnd these tax codes at a.i. Examples a.i.1. a.i.2. DA Digital Audio FR Freight Next, in the Comment feld, enter the description of this tax template and then select Save. The remainder of the felds and columns in this window should be blank. 6. From Navigation Center, select General Ledger module, select Settings and then select Tax Exemptions. Enter in all the reasons for tax exemptions connected with customers. Use the Tax exemptions given by Avalara. They can be found at Standard ERP Integration with Avalara Sales Tax 3/22

5 a. For example: a.i. a.ii. B - State government G Resale After you are fnished flling in the Code and Text columns, select Save. 7. From the Navigation Center, select Switch Module, go to System Module and then select Settings. Select Company Info. Enter in your company name and address. Then select the Reg tab. Enter your Country using paste special (cmd +enter). Select Save. These felds must be correctly flled in order to integrate with Avalara. 8. From the Navigation Center, Switch Module to System module, select Settings and then select Countries. In the browse window, select Create and then select New Countries. This will open a Country record window. Avatax uses ISO-3166 two-character country codes, but you still have the option to enter three-character country codes in the country records of StandardERP. Standard ERP Integration with Avalara Sales Tax 4/22

6 a. Option 1: Using ISO-3166 two-character country codes for country list a.i. a.ii. a.iii. In the Country record window, select the Code feld. Enter in the ISO-3166 two-character country code for the country you wish to list. Select the Text feld. Enter the name of the country. Select Save. b. Option 2: Using three-character country codes for country list b.i. b.ii. b.iii. b.iv. In the Country record window, select the Code feld. Enter in the three-character country code for the country you wish to list. Select the Text feld. Enter the name of the country. Select the ISO Code feld. Enter in the ISO-3166 two-character country code for that country. Select Save. Standard ERP Integration with Avalara Sales Tax 5/22

7 9. Now from the Navigation Center, select Accounts Receivable Module and then select Registers. Select Item Groups. a. In each item group, in the felds Loc.Tax Temp, Domestic Tax Temp. and Export Tax Temp, paste special (cmd + enter) the tax template that will be applied when items that belong to this item group. Standard ERP Integration with Avalara Sales Tax 6/22

8 10. (Optional) If you have a specifc item that belongs to an item group that should have a different tax template, select Registers in Accounts Receivable Module and then select Items. Select the specifc item. Click on the A/C tab. Setup tax templates in the felds Loc.Tax Temp, Domestic Tax Temp. and Export Tax Temp. Otherwise, leave these felds blank. 11. For Avatax integration, freight charges must be listed as items in StandardERP. To set up freight as an item, in the Accounts Receivable Module, select Registers and then select Items. On the browse window, select Create and then select New Item. Fill in the item card for freight as you would for a new item. Standard ERP Integration with Avalara Sales Tax 7/22

9 When you create invoices, sales orders or quotations, you would simply enter freight into the matrix feld as an item. Standard ERP Integration with Avalara Sales Tax 8/22

10 12. From the Navigation Center, select Registers. Select Contacts and then select a contact in that you want to apply a tax exemption to. On the contact window, select the Accounts Tab and then go to the feld Tax Exemption. Paste special (cmd + enter) to open the tax exemption types and select the exemption that applies to that contact. If an exemption type is not listed in the paste special window, you can type it on this feld as per Avalara s tax exemption codes. Please refer back to step 6. Standard ERP Integration with Avalara Sales Tax 9/22

11 How AvaTax Works with StandardERP In this section of the user guide, examples will be used to show how AvaTax works with StandardERP. NB: As a guide, in the following examples, the paths starting from the Navigation Center in StandardERP will be defned using the symbol >> Example 1: Creating a Quotation and an Invoice Workfow Breakdown 1. Create a Contact. Path: Switch Module >> CRM >> Registers >> Contacts >> Create >> New Contact In the New Contact record window, fll in the appropriate information for your new contact. Be sure to fll in the address in the Contact tab, and then select Update Address. Repeat this same step in the Delivery tab. If the delivery address is the same as the invoice address, you can leave this feld blank. Standard ERP Integration with Avalara Sales Tax 10/22

12 When you select Update Address, a request is sent directly to Avatax to validate the address. If the contact and delivery addresses are validated, then all felds become capitalized. If the felds are not capitalized after you select Update Address, please double check your address to ensure that you have entered the correct address information into the felds. 2. Create a Quotation Path: Switch Module >> Quotations >> Registers >> Quotations >> Create >> New Quotation In the New Quotation record window, select the Customer feld, use paste special (cmd + enter) to fnd the contact that you created. Select this contact and press enter on your keyboard. The information from your contact card will automatically populate into this record (including Invoice and Delivery address). Fill in the appropriate information for your new quotation. In the matrix feld, enter your items in the Item column and specify their respective quantity in the Qty column. Select Save. When you save, you will notice that the Sales Tax feld at the bottom of the Quotation record will automatically populate. StandardERP sends a request to AvaTax to automatically calculate the taxes for this quotation. Standard ERP Integration with Avalara Sales Tax 11/22

13 3. Create Invoice from Quotation Path: From Saved Quotation Record Window >> Create >> Invoice Standard ERP Integration with Avalara Sales Tax 12/22

14 You will see that an Invoice has been created for that customer, with all of the information automatically populated from the contact and quotation records. Once you ensure that the invoice record is completely flled to your requirements, you can now OK it. This will post your transaction to the General Ledger and also send the sales tax information for this invoice to AvaTax for reporting purposes. To do this, select the OK check box and then select Save. If you receive an error message, correct or add in the necessary information and select Save again. Standard ERP Integration with Avalara Sales Tax 13/22

15 If you want to see a breakdown of the sales tax that was calculated from Avatax in the invoice, select the Operations icon and then select Open Tax Matrix. Standard ERP Integration with Avalara Sales Tax 14/22

16 This will open up a matrix window showing the breakdown of the sales tax. To see tax details for a specifc row in your invoice matrix, select the row and then select open tax matrix. You will see the tax details for that specifc row only. If your sales tax does not show on your invoice, or you want it recalculated because you added or changed items on an invoice, select the Operations menu, and then select Get Tax Rates. Avatax will recalculate your taxes and it will be displayed in the Tax Matrix (Operations menu >> Open Tax Matrix). Keep in mind that you do not normally need to use this functionality because this feld is calculated automatically in StandardERP once you select Save. Standard ERP Integration with Avalara Sales Tax 15/22

17 Example 2: Creating an Invoice with Items from Diferent Locations and Freight Charges StandardERP also communicates with Avatax when creating invoices that contain items that are stored in different locations. To show an example of this, consider a situation where your company operates from multiple locations. This means, you have multiple distribution points where items can be shipped. Create an invoice and set up a default location from where items will be shipped. To do this, frst set up locations in your system. From the navigation center, use the following path: Path: Switch Module >> Accounts Receivable >> Registers >> Invoices >> Create >> New Invoice >> Del. Terms Tab Select the Del. Terms tab and then select the Location feld. Select the location that you want your items to be sent from using paste special (cmd + enter). The paste special window will open showing the locations you have created. By selecting a location in this feld, StandardERP will know that you want all of your items on this specifc invoice to be sent from this specifc location. When you are done, select Save. Now, consider the situation where you still want some specifc items on your invoice to be sent from other locations. To do this, on the Terms tab of the invoice window, select the vertical tab B. In the Location column of the invoice matrix, paste special the other location that you want the specifc items to be sent from. Select Save. Standard ERP Integration with Avalara Sales Tax 16/22

18 Add in your freight charge as a line item in your invoice matrix using paste special in the Item column of the matrix. Select Save. Standard ERP Integration with Avalara Sales Tax 17/22

19 After you Save this, Avatax will take into consideration that you have items that are being sent from two different locations and will calculate your taxes accordingly. Remember, when you have verifed that all of your information on your invoice is correct, select the OK box on the invoice and then select Save. This will post your invoice to your General Ledger in StandardERP and to Avatax so that they have this for their reporting purposes. Standard ERP Integration with Avalara Sales Tax 18/22

20 Example 3: Voiding an Invoice When you select the OK box on an invoice and select Save, your invoice record will be reported to Avatax and stored in its database. This means that it will be used for tax reporting purposes and be considered to be a permanent record. In StandardERP. If you have made a mistake, or wish to void an invoice, open the invoice. On the menu bar, select Record and then select Invalidate. You will see red lines striked through the invoice, showing that it has been invalidated. Avatax will take note of this and the invoice will not be used for reporting purposes. Standard ERP Integration with Avalara Sales Tax 19/22

21 However, if your invoice has already been reported to tax services by Avatax, you will receive an error message in StandardERP when you try to invalidate. As a workaround, you will have to apply a credit memo to this invoice and then create a new invoice refecting the changes that you want to make. To apply a credit memo to an invoice, open your OK d invoice from the invoice browse window. Select Create and then select Credit Memo. Standard ERP Integration with Avalara Sales Tax 20/22

22 You will notice that the payment terms on your invoice will change to CN. Select OK and then select Save. AvaTax will take note of this credit memo and this process will be validated. Standard ERP Integration with Avalara Sales Tax 21/22

23 Troubleshooting All activity between StandardERP and Avatax is documented in a folder called Avalara. This folder is located in the StandardERP server folder of your operating system. If you contact customer support, they will ask you to refer to this folder for troubleshooting purposes. Standard ERP Integration with Avalara Sales Tax 22/22