Theenhancement allows accrued tax amounts to automatically flow to the and AvaTax reports.
Review definitions, examples, and use case studies before adding or importing consumer use tax transactions.
Add a consumer use tax transaction
Enter and view, such as purchase invoices and inventory transfer invoices, on the Transactions tab in AvaTax.
To add a consumer use tax transaction:
- On the Transactions tab, from the Company list, select the company for which you're adding a transaction, and then click New. The New: Transaction Adjustment screen opens, displaying the Document tab.
- On the Document tab, complete the required fields at a minimum (refer to add a transaction).
- Ensure that the date in the Document Date field is within the current tax period.
- From the Document Type list, select Purchase Invoice or Inventory Transfer Invoice. These types of documents calculate consumer use tax.
- To add one or more lines (refer to add a transaction):
- On the Lines tab, click Add New Line for each Item in the document.
- At a minimum, complete the following fields for the new line:
Field Value Line No The line number Quantity
- If overriding consumer use tax, enter 1
- If not overriding consumer use tax, the quantity sold
- If overriding consumer use tax, enter 0
- If not overriding consumer use tax, the dollar amount of the sale
- To enter separate addresses for the line, click Origin and Destination. Windows open that are identical to those used for the origin and destination addresses of the document.
- From the Tax Override Type list, select the appropriate tax override type based on one of the following scenarios, and then enter the Tax Override Amount, Tax Override Date, and Tax Override Reason:
Scenario Override to select Notes To have AvaTax calculate accrued tax or vendor-paid consumer use tax Don’t select a tax override or enter the override information Make sure you’ve entered the dollar amount of the sale for the line item in Amount. To enter accrued tax or vendor-paid consumer use tax yourself in order to remit it to the state AccruedTaxAmount
- Amount must be $0, and the Tax Override Amount field should have the amount of consumer use tax to be claimed.
- You must select AccruedTaxAmount for all lines on the transaction.
- The line calculates as if consumer use tax still needs to be paid and it populates on the liability worksheet to be filed.
To enter accrued tax or vendor-paid consumer use tax yourself, but report it as already remitted to the state TaxAmount The line calculates as if the consumer use tax was paid and it doesn't populate on the liability worksheet.
- Click Add.
- Click Calculate Tax in the left sidebar. The results of the tax calculation display at the bottom of the Document tab.
- Click Save as Uncommitted or Save as Committed.
Import consumer use transactions
Importing manage the transactions in AvaTax the same way as any other transaction.allows you to add many transactions to AvaTax at once. You can import consumer use transactions in Microsoft® Excel® or comma-separated value (CSV) file format. Once imported,
The ImportTransactionsTemplate files in the import transaction toolkit use the correct column headings. For help importing transactions, use the import transaction help file in the toolkit (ImportTransactionsHelp_Protected.xlsx) and follow the steps in Add or Import Transactions.
The specific ProcessCode and DocType values to use depend on the type of consumer use transaction imported. Use the DocType field to indicate the type of purchase document.
Use the ProcessCode field with purchase and inventory transfer document types to enter consumer use tax transactions as in the following 3 scenarios:
- You've paid tax to the vendor and want to report the amount of tax
- ProcessCode 1: New transaction
- ProcessCode 2: Adjust existing transaction
- You provide just the taxable amount of a purchase or inventory transfer and want AvaTax to calculate the tax amount to be accrued
- ProcessCode 3: New transaction
- ProcessCode 4: Adjust existing transaction
- You calculated and accrued the tax outside of AvaTax and simply want to include this tax amount on your tax returns and/or in the various Admin Console reports
- ProcessCode 5: Accrued tax override – new transaction
- ProcessCode 6: Accrued tax override – adjust existing transaction
- For process code 5 or 6, input the accrued tax override amount desired in the TotalTax column (column AP) and a zero cost amount in the Amount column (column N)
- The AvaTax service no longer supports process codes 1 or 2 for transactions with a purchase or inventory document type and a cost (amount) value of $0. Use process codes 5 and 6 to add consumer use tax to the liability worksheet. Using process codes 1 or 2 under these conditions results in an error message requiring you to change the process code to 5 or 6.
- Process codes 1 and 2 result in only the variance between the tax override amount and the calculated tax amount being reported
Verify the imported calculations
After uploading your import file, view the file in the Admin Console in order to review and verify the calculations.
- In the Admin Console, click the Tools tab. Under Imported file management, click Consumer use tax batch verification.
- Find the file you uploaded (on this screen, the file name is displayed without the assess prefix). Click Verify Now to see a list of the imported transactions with the calculated consumer use tax.
- Review the consumer use tax calculations in the import document. Accrual is the difference between calculated tax and charged tax (it might be negative). Whether or not you approve the accrual depends on your specific accounting and audit situation. Enter a different accrual amount if necessary. Otherwise, click either Approve or Decline for each transaction. Or to quickly approve all transactions, at the bottom of the page, click Approve All.
- Once you have approved or declined each transaction, click Save & Review
- After you verify the tax calculations, click Save to AvaTax. Once you save the transactions, you can submit them along with the rest of your taxes when you file using Returns.
Once you've verified your consumer use transactions, view the final report by going to Tools > Consumer Use Tax Batch Verification again, and clicking View report next to the imported transactions that you want to examine.
To download your consumer use transaction data, go to Tools > View Imported File Status and click the version of your imported file that has the word "verified" in the file name.