In the United States and Canada, states/provinces are free to determine rules, regulations, and rates associated with collecting and remitting sales taxes. Additionally, within each state/province, local governments and even specific geographic districts within a local government can create rules, regulations and rates associated with sales tax. Therefore, customers conducting businesses in multiple states/provinces are challenged to maintain the accuracy of the sales tax rates as well as the rules for sales tax exemption of particular items or classes of items.
Avalara Inc., a certified service provider for the Streamlined Sales Tax Project, now enforced in a number of states in the United States, was founded with the aim to provide easy and accurate methods of sales and use tax calculations. AvaTax is its base service that runs behind the scenes of accounting and ERP software to automate the sales tax function for companies from address validation, tax jurisdiction research, and rate calculation to reporting and tax returns. For more information, see http://www.avalara.com/.
As AvaTax integrates easily with accounting and ERP systems, the sales tax functionality in Exact Globe is now integrated with AvaTax.
As a prerequisite, the following must be taken into consideration:
The Avalara taxation functionality is available only for American and Canadian legislations when SE1002 is available.
You can enable this functionality only when the Use tax module check box under the Tax section in General ledger settings is selected. For more information, see General Ledger Settings.
This functionality is applicable for quotations, sales orders, RMA orders, recurring sales orders, invoices, direct invoices, credit notes, and recurring invoices and is not supported in any financial application.
In the case when an RMA order is created based on a previous invoice and final processed, it will always get the latest tax amount from Avalara. For such a case, the sales credit note amount might not match the invoice amount.
In the case when you create a credit note from an invoice, the sales credit note will copy all the information from the invoice with negative amount. When you run the Get Tax process, it will overwrite the original tax amount in case the rates are different.
Project terms generated from the sales order application will not be supported. All affected buttons will be disabled once the Avalara taxation check box is selected in the Sales orders screen after clicking the Conditions button.
The following changes have been implemented for the American and Canadian legislations:
Transaction type will default to Sales and will be disabled.
Percentage will default to 0.000 and will be disabled.
Tax % description and Calculation basis will be disabled.
At the Tax to pay account, you can type or select only the tax creditor general ledger accounts.
Tax to claim account will be disabled.
At Vendor, you can only type or select a creditor type account.
At Payment, you can select Monthly, Quarterly, or Yearly.
Create invoice, Prepayment, and Advance invoice buttons in the Sales orders screen after clicking the Conditions button at Order/Entries/Sales orders.
Generate: Invoice button in the Maintain projects screen at Projects/Projects/Maintain projects.
Terms button in the To be invoiced screen at Projects/Entries/Invoice proposal.