Configure AvaTax in Sage Intacct for multi-entities

AvaTax is a Web-based tax service that calculates the sales tax owed on the sale and purchase of goods and services. Learn more about AvaTax.

The Configure Avalara Tax page enables you to configure your company for use with AvaTax. You can enter your Avalara account info and select options to:

• Enable tax calculation for one or more of the following applications:
  • Accounts Receivable
  • Order Entry
  • Purchasing
• Track tax revenue using a specific GL account
• If mailing addresses do not exist, enable the use of latitude and longitude coordinates as addresses in the tax calculations

Requirement: For the AvaTax integration to work, Avalara also needs to be configured for use with Intacct, which means that at least one matching company and one nexus is configured for Intacct in Avalara. See Configure AvaTax in Avalara.

Enter your Avalara account information

If you are newly subscribing to Avalara Tax integration in Intacct, the Configure Avalara Tax page appears automatically after you subscribe to Avalara Tax on the Subscriptions page (Company > Admin > Subscriptions).

Before you can configure Avalara Tax for your Intacct company, you need to enter the authorization credentials.

1. Copy and paste your Avalara Account ID and License key into their respective fields. This information is located in the activation email that Avalara sent you. Contact Avalara to resend the email if you can't locate it.
2. Enter the Avalara Dashboard user ID and Dashboard password. This is the username and password for the dedicated user you set up in Avalara for Intacct's access to AvaTax. When Intacct makes web service calls to AvaTax to have taxes calculated, this user ID and password are used for automatic log in to AvaTax.

   Learn about creating a dedicated user for Intacct's access to AvaTax.

3. Enter your Avalara Company Code. This is the unique code you entered in Avalara to identify your newly-created Avalara company. Your Intacct transactions are mapped to the Avalara company identified by this code.
   After you've created a transaction, you can no longer change the company code. This prevents Avalara from creating any duplicate sales transactions in multiple Avalara companies.
4. By default, Avalara sends tax calculations directly to your production Intacct account. If you first want to send these calculations to a test account, select the Environment dropdown arrow and then select Test. When you are ready to start computing taxes on your production account, be sure to switch back to production mode and configure the proper Avalara account for sales tax management.

Now you are ready to configure Avalara Tax for calculating tax in your Intacct applications, as described in the following section.

Configure AvaTax for multiple entities

If your company has multiple entities, you configure the top level first, and then configure each entity independently. Top and entity level configuration is similar, however you can configure certain options only at the top level:

• Account, license, and dashboard credentials for using Avalara
• The environment you are configuring in (you can configure for a test company, and when satisfied with the configuration, switch to your live company.)
• The use of longitude and latitude coordinates as addresses for your contacts

After subscribing to and configuring AvaTax at the top-level of your Intacct company, you can then configure at the entity level.

Configure AvaTax settings at the entity level

Each entity inherits the subscription settings from your top-level configuration, such as Avalara account ID, user ID, login information, selections for AR, OE, and Purchasing and the list of countries.

However, you can change the settings for the entity-level subscription to tailor it for your entity. For example, you can refine the list of countries to include only those required for the entity.

To configure Avalara Tax at the entity level:

1. Log in to Intacct.
2. At the top of the window above the application menu bar, click the Top level dropdown to display the entities.
3. Click the entity that you want to configure.
4. Go to Company > Admin > Subscriptions. The Subscriptions page appears.
5. Click Avalara Tax, then click Configure. The Configure Avalara Tax page displays.
6. To prevent this entity's transactions from posting to Avalara, clear the Enable Avalara integration checkbox. If you do want this entity's transactions to post to Avalara Tax (that is, you do want Avalara to calculate sales taxes), select the checkbox.

   If you are using the Taxes application, do not deactivate the calculation of sales tax for entity-level transactions in any entity that uses Avalara AvaTax as a tax solution because transactions can only be entered at the entity level.

7. Each entity inherits the same Avalara Company Code specified in the top-level configuration. If you need separate reporting and returns, you can change the Avalara Company Code per entity. To map this entity's transactions to a separate Avalara company, enter this entity's Company Code into the Company code box.
   After you've created a transaction, you can no longer change the company code. This prevents Avalara from creating any duplicate sales transactions in multiple Avalara companies.
8. Select the Accounts Receivable tax label to which you want Avalara transactions to post. To do this, click the Tax label dropdown and, from the list that displays, click the tax label you want.

9. Select the countries for which you want to calculate sales tax or tax outside the United States.

   • The countries that you can select at the entity level are limited to the countries that you selected at the top level. If you have additional countries that you need to add, you must first add them at the top level before selecting them at the entity level.
   • When you create an OE, AR, or Purchasing transaction at the entity level, AvaTax uses the countries selected here, along with the ship to and ship from addresses, to determine whether to calculate sales tax.
   • The countries that you select can be different for each entity, and depend on the countries in which the entity has a nexus.

Use ISO country codes for Ship To and Ship From addresses

The ISO country code aligns with ISO 3166-1 standard country codes. Turning on ISO country codes in your company enables AvaTax to accurately determine tax, eliminating the risk of incorrect interpretation. The ISO country code lists U.S. and foreign addresses separately for computing tax.

1. Go to Company > Setup > Configuration.

   The Company information page appears.

2. Select Edit.
3. To turn on the country code for your address, in the Company information section on the General Information tab, select the Use ISO country codes checkbox.

Enter address information to enable AvaTax calculation

As part of your application setup, make sure that the following addresses and codes are available for AvaTax calculation:

Set up Company	Set up AR	Set up OE	Set up PO
Company address.	Customer Ship to contact is used to determine tax. The Ship To address is retrieved from the customer record, unless a Ship To contact is specified on the transaction.	Customer Ship to contact is used to determine tax. The Ship To address is retrieved from the customer record, unless a Ship To contact is specified on the transaction.	Location/entity on the transaction line item is used to determine tax. Vendor Return-to contact is used to determine transaction origin.
If multi-entity, provide valid addresses for entities.		Warehouse contact address is used to determine tax for inventory items	Warehouse contact address is used to determine tax for inventory items
Exemption use codes	Provide exemption use codes for customers and Ship to contacts.	Provide exemption use codes for Ship to contacts.