When you activate your account, you set up your initial. A company in AvaTax is a model of your business from a sales tax and consumer use tax perspective. You can always add more companies later.
Add an additional company for testing purposes to test changes to your configuration before applying it to your main company. Or, if you have a separate reporting entity, add a new company when one company acquires another and you need to keep transactional data separate.
AvaTax has instructions and information on each screen to guide you through the process. As you work:
- Click Next or Back to navigate through the setup steps.
- Click Save & Exit Setup at any point after creating the .
- Restart the configuration of a company at any time.
After you add a company, edit your company and manage your company.
To add a company:
- On the Organization tab, click New. The Company Setup screen opens.
- Select the type of company for your company
. If the company is part of a multi-company organization:
- Select or create the parent company.
- Define the / relationship in a multi-company organization.
- Identify the company with a Company Name and a unique Company Code. Once saved, the can't be edited.
- Select a Default Country and a Base Currency.
- Select the controls how AvaTax rounds the tax amount for a .
for the company. The
- Line-level rounding:
- Rounds the tax amount to two decimal places for each tax line, discards the rounding difference, and adds the tax amounts of each line together to get the total tax amount
- Occasionally calculates the sum of each line as a penny less or more than with document rounding
- Document-level rounding:
- Calculates the tax amount for each line (without rounding), adds those amounts together, and then rounds that total to two decimal places to get the total tax amount
- Eliminate the occasional rounding inequality experienced with the line-level method by redistributing the rounded amounts
- Line-level rounding:
- Select a Freight and Handling Tax Dependency Level.
- Enter the address for the . If the Separate Reporting Entity option is set to Yes for a company, complete at least the required fields.
- Enter the Business Tax Identification Number (TIN) or Business Identification Number (BIN) for the company.
- Enter the information for the primary contact for the . If the Separate Reporting Entity option is set to Yes for a company, complete at least the required fields.
information for the , completing at least the required fields. Keep the following in mind:
- Once you save it, the location code can't be edited.
- The address you entered previously automatically fills fields on this screen, but changes you make on this screen do not change information on the other address screen.
- To Validate. the address information, click
- If the address is in a state that:
- Doesn't use location-based reporting, skip to step 13.
- Uses location-based reporting, enter additional location information depending on the address for the
- If you are not a Returns client, when asked “Is this specific location registered with the proper taxing authorities to report sales and use tax?”, accept the default value No, and then click Next.
- If you are a Returns client, when asked “Is this specific location registered with the proper taxing authorities to report sales and use tax?”, choose your answer based on the following, and then click Next:
- To make the Outlet Name and DBA Name fields optional, accept the default value No.
- To make all fields accessible and most required, select Yes, and then complete the screen as required, based on the city and state information associated with this location. Generally, a good resource for this information is the hard copy return provided by the taxing jurisdiction.
- To use the company for testing purposes only, designate it as a test company.
- Review the Finish to save the company. The new company appears in the Company list on the Organization tab with a status of In Progress.
information for errors or omissions, and then click
- To change or add information, click Back to return to the appropriate screen.
- Click Print Preview to view or print a summary of the company and account information.
- To allow AvaTax to process transactions and validate addresses, activate the company.