For the purpose of illustrating how Avalara AvaTax Tax Calculation when integrated with SmarterCommerce a "standard contract" is one where there are no errors or exceptions and the contract document type is active based on UDC Definitions within UDC 59/AO - Avalara AvaTax Order Document Types and UDC 59/AT - Avalara AvaTax Country Validation.

Tax Calculation uses the origin (outbound branch plant address associated to project or job-related to the contract) and destination address (ship to address associated to contract header send to address or customer if not send to) to determine the proper tax rate per order. 

Customer Setup for Tax Information must be complete to allow customers to pay tax by default. Anyway, tax information can be also completed in the Contract Header or in the Billing Line definition.

Step 1

Enter the Job or Project indicating at least the following fields. Job Site Address could be also used to define the origin location for tax calculation.

Step 2

Enter the Contract verifying tax related fields from customer master or populate them manually. To execute Avalara AvaTax Get Tax calculation, set the Tax Rate/Area field of the order lines equal to the value defined in ATTAXAREAC constant. A tax rate/area set to <blank> or any value other than value found in constant will bypass call to Avalara AvaTax Get Tax calculation:

Step 3

Enter Billing Lines for Contract verifying tax related fields. These fields can also manually populated.

Step 4

Process the Contract and Billing until the run of the Workfile creation. In the Billing Workfile (P4812), Tax fields are calculated for all shown billing lines with tax fields previously populated. Field Base Revenue represent the original amount for billing. Base Invoice field includes Base Revenue plus calculated Tax. The row exit to Re-Extend will also calculate taxes and add a record to the FQ67AT01 table.

Step 5

Process the Workfile through the Invoice Print and process to AR. During this process SmarterCommerce will send and commit the invoice into Avalara Avatax.