For the purpose of illustrating how Avalara AvaTax Tax Calculation when integrated with SmarterCommerce a "standard warranty" 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 warranty contract header related) and destination address (ship to address associated to warranty 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 customer to pay tax by default.

Step 1

Enter the Warranty Contract Header indicating the following fields in Additional Info Tab. 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 2

When you enter the detail lines for the contract the field Taxable must be populated with Y in order to calculate Tax:

Step 3

Process the Warranty Contract 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. Please note that if the constant ATTAXCDCB is defined the tax code for the item will come from the category code defined in the constant. 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 4

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