Enhanced interface

Convert to the Taxes application

The Taxes application changes the way that we determine, calculate, and report sales and purchases taxes for all countries, including the US. When a company is converted to a multiple jurisdiction tax configuration in the Taxes application, their existing tax engines are consolidated and converted to align with these changes.

Subscription	Requires: Taxes Optional: Avalara AvaTax
Regional availability	All regions, excluding US
Permissions	Admin privileges for Configure Taxes Taxes: Tax Solutions (List, View, Add, Edit, Delete) Company: Contact tax groups (List, View, Add, Edit, Delete) Order Entry, Purchasing, or Inventory Control: Item tax groups (List, View, Add, Edit, Delete) Accounts Payable, Accounts Receivable, Order Entry, Purchasing: Tax Authority (List, View, Add, Edit, Delete) Tax Detail (List, View, Add, Edit, Delete) Tax Schedule (List, View, Add, Edit, Delete) Tax Schedule Map (List, View, Add, Edit, Delete)
Dependencies or other requirements	A company must have a compatible setup of tax engines in their Accounts Receivable, Order Entry, and Purchasing applications.
Implementation	Select Multiple tax jurisdictions on the Configure Taxes page. After the conversion is complete, configure each entity for the tax solution you want to use.
Configuration	An entity can have only one tax solution.
CSV	If you're using a multiple-tax jurisdiction configuration, use the field to identify the tax solution to associate with the tax object. Each tax object can only be associated with one tax solution.

Preparing your company for conversion

Before converting to a multiple jurisdiction tax configuration, make sure that your company is set up for an easy conversion. This includes:

Thoroughly test the conversion in your implementation company or other testing sandbox before implementing it in your production company.
Confirm that the tax engines for Accounts Receivable, Order Entry, and Purchasing are in a compatible configuration. Users might be able to change to a compatible configuration.
Confirm that no adjustments are necessary for transactions in a closed period. Transactions in a closed period will be locked during conversion. Users will get an error if they try to reopen them to edit them.
Allow all transaction imports to complete.

Tax engine compatibility

To convert to a multiple jurisdiction tax solution, existing companies must have a compatible set of tax engines in their Purchasing, Order Entry, and Accounts Receivable applications. Due to the differences in the ways Advanced Tax and Avalara Tax are configured, some companies that use a mix of these engines cannot be converted. If an application is not configured for Avalara Tax before conversion or if an entity is not configured with a tax solution after conversion, then Simple Tax will be used as the fallback tax solution.

The following table shows the configuration of compatible tax engines.

Compatible tax engines

Accounts Receivable	Order Entry	Purchasing	Compatible	Converted tax engine
Avalara Tax	Avalara Tax	Avalara Tax	Yes	Avalara Tax
Avalara Tax	Avalara Tax	Simple Tax	Yes	Avalara Tax
Avalara Tax	Simple Tax	Avalara Tax	Yes	Avalara Tax
Avalara Tax	Simple Tax	Simple Tax	Yes	Avalara Tax
Simple Tax	Avalara Tax	Simple Tax	Yes	Avalara Tax
Simple Tax	Avalara Tax	Avalara Tax	Yes	Avalara Tax
Simple Tax	Simple Tax	Avalara Tax	Yes	Avalara Tax
Simple Tax	Simple Tax	Simple Tax	Yes	Simple Tax
Simple Tax	Simple Tax	No Tax	Yes	Simple Tax
No Tax	Avalara Tax	Avalara Tax	Yes	Avalara Tax
No Tax	Advanced Tax	Advanced Tax	Yes	Custom Advanced Tax
No Tax	Simple Tax	Simple Tax	Yes	Simple Tax
No Tax	No Tax	No Tax	Yes	None

Incompatible tax engines

In cases where a company has an incompatible set of tax engines, it's often possible to change the application-level tax engines to a compatible configuration. The following table shows the configuration of incompatible tax engines.

Accounts Receivable	Order Entry	Purchasing	Compatible	Conversion Errors
Advanced Tax	Avalara Tax	Avalara Tax	No	Conversion Message #1
Advanced Tax	Advanced Tax	Advanced Tax	No	Conversion Message #1
Advanced Tax	Simple Tax	Simple Tax	No	Conversion Message #1
Advanced Tax	Simple Tax	No Tax	No	Conversion Message #1
Advanced Tax	Avalara Tax	Advanced Tax	No	Conversion Message #1, #2
Advanced Tax	Advanced Tax	Avalara Tax	No	Conversion Message #1, #3
Advanced Tax	Advanced Tax	Simple Tax	No	Conversion Message #1, #8
Advanced Tax	Simple Tax	Advanced Tax	No	Conversion Message #1, #9
Simple Tax	Advanced Tax	Simple Tax	No	Conversion Message #8, #10
Simple Tax	Simple Tax	Advanced Tax	No	Conversion Message #9, #10
Simple Tax	Advanced Tax	Advanced Tax	No	Conversion Message #10
Simple Tax	Advanced Tax	No Tax	No	Conversion Message #10
Avalara Tax	Avalara Tax	Advanced Tax	No	Conversion Message #2, #5
Avalara Tax	Advanced Tax	Avalara Tax	No	Conversion Message #3, #4
Avalara Tax	Advanced Tax	Advanced Tax	No	Conversion Message #4, #5
Avalara Tax	Avalara Tax	Avalara Tax and Advanced Tax	No	Conversion Message #2, #5, #6
Avalara Tax	Avalara Tax and Advanced Tax	Avalara Tax	No	Conversion Message #3, #4, #7

The Taxes application does not support companies using SIG VAT.

Convert to the Taxes application

To convert your company to a multiple tax jurisdiction configuration:

Go to Company > Admin > Subscriptions and subscribe to the Taxes application. We run a validation check to confirm that you have a compatible tax engine setup in Accounts Receivable, Order Entry, and Purchasing.
In Installation options, select Multiple tax jurisdictions.
Select the checkbox if you want to turn off government service validation of tax numbers.
Select Save.

After the conversion completes, a Conversion status pane appears showing your tax engines at the time of conversion, the conversion date, and the current tax engines for your Company.

Complete these steps before creating any transactions:

Give permission for Tax solutions to the users who will configure the tax solutions.
Configure one or more tax solutions according to your needs.
Ensure that a tax solution is set for each entity and the entity is configured correctly.

Troubleshooting conversion messages

Before converting a company to a multiple tax jurisdiction configuration, we run a validation check to ensure the company and its entities have compatible tax engine setups in their Accounts Receivable, Order Entry, and Purchasing applications. A company with compatible setups will be converted. If your company cannot be validated, you'll receive one or more of the following conversion messages. Multiple conversion messages are possible.

Check the following conversion messages for solutions and steps to take:

Conversion message #1: Accounts Receivable uses Advanced Tax.

Conversion message #2: Order Entry uses Avalara; Purchasing uses Advanced Tax.

Conversion message #3: Order Entry uses Advanced Tax; Purchasing uses Avalara.

Conversion message #4: Accounts Receivable uses Avalara; Order Entry uses Advanced Tax.

Conversion message #5: Accounts Receivable uses Avalara; Purchasing uses Advanced Tax.

Conversion message #6: Purchasing uses both Avalara and Advanced Tax.

Conversion message #7: Order Entry uses both Avalara and Advanced Tax.

Conversion message #8: Order Entry uses Advanced Tax; Purchasing uses Simple Tax.

Conversion message #9: Order Entry uses Simple Tax; Purchasing uses Advanced Tax.

Conversion message #10: Order Entry or Purchasing uses Advanced Tax; Accounts Receivable uses Simple Tax.

Conversion message #11: You have a standard company with existing taxable transactions.

Conversion message #12: Your company uses cash basis accounting.

Conversion message #13: ISO country code is not enabled in company configuration.