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Manage Item Taxability with UPC

This article applies to:Avalara AvaTax

AvaTax already contains and supports most UPCs. There is no need to import a file for most UPCs. Check a file of UPC items and receive a listing of UPCs supported by AvaTax​. You can find the import file template in the AvaTax System Tax Codes Toolkit.

To calculate sales tax using UPCs, an AvaTax account must:

  • Purchase the UPC option
    • In the event you do not have the UPC option for your AvaTax ​account, item codes with the UPC: prefix calculate sales tax as a taxable Tangible Personal PropertyHoverTT.png item.
  • Start the item code with "UPC:"​
    • ​​UPC must be in all capitals and be followed by a colon.
    • A single space after ​"UPC:" is supported.
    • AvaTax accurately taxes UPCs from 12 to 14 digits inclusive.

Check a file of UPC items

Follow the steps below to import a UPC Check file into AvaTax.

  1. On the Tools tab, click Import Data.
    AvaTaxCalc-Tools-ClickImportData.PNG
  2. On the New: File Import screen, select UPC Check for Type.
     
  3. Select a Company.
     
  4. Click Browse to select the file to import. You can import files with .csv extensions. All other files cause an error message to appear.
  5. Click Upload.
    AvaTaxCalc-Tools-ClickUpload.png

Notes:

  • UPC needs to be minimum 13 Digits numeric value and with a Check Digit. 
  • The time to import a file varies depending on the number and type of records imported.
  • The number of records allowed in one file is 100,000.

Identify unsupported UPCs

Determine if any of your imported UPCs are unsupported by following the steps below.

  1. On the Tools tab, click View Imported File Status.
    AvaTaxCalc-Tools-ClickImportData.PNG
  2. On the Import Status screen, select a Company.
  3. Filter the Import Status list of imported files as desired.
  4. Click the Result.csv for the imported file. Supported UPCs are taxed correctly. Unsupported UPCs are listed in the Result.csv file with a message of "Unsupported." 
Note:
Back-dated transactions using a UPC may tax an items as Tangible Personal Property because at the date of the back-dated transaction, the UPC was unsupported

Create a transaction to test a UPC

You can create a transactionHoverTT.png to test a UPC sent from your accounting application.

  1. On the Transactions tab, select a Company.
    AvaTaxCalc-Transactions-SelectTransactionsCompany.png
  2. Click New.
    AvaTaxCalc-Transactions-SelectNewTransaction.png
  3. To add the origin address, click the Origin link.

    AvaTaxCalc-Transactions-OrigAddress.png

    1. In the Origin dialog, type or select an address.
    2. Click Validate.
    3. Click OK.
  4. To add the destination address, click the Destination link.

                AvaTaxCalc-Transactions-DestAddress.png

    1. In the Destination dialog, type or select an address. If no address is entered, the origin address is used for the destination address.
    2. Click Validate.
    3. Click OK.
  5. On the Document tab, complete the required fields at a minimum:

    AvaTaxCalc-Transactions-DocTab.png

    • Document Code: The code of the document as assigned by the accounting, ERP, e-commerce, m-commerce, or POS application.
    • Customer/Vendor Code: The code used by the accounting, ERP, e-commerce, m-commerce, or POS application to uniquely identify a customer or vendor.
    • Document Date: he date associated with the document. The document date is used for:
      • Tax calculation date
      • Reporting date associated with the document
    • Select Sales Invoice as the Document Type
  6. The following optional fields appear on the Document tab and may be completed:
    • Location Code: The internal code used by a company with multiple retail (brick and mortar) stores or multiple places of fulfillment (warehouses) to uniquely identify the location associated with the transaction. The location code must be the same as the code passed as part of the transaction.
    • Discount: The document-level discount amount to be applied.
    • Currency: The currency type used in the document.
    • Exemption No (Number): The exemption certificate entry number associated with this customer.
    • Buyer's VAT No (Number): The VAT number of the buyer.
    • Reference Code: A user-defined field for reference purposes only. The reference code can be used to refer to a corresponding document number in an accounting, ERP, e-commerce, m-commerce, or POS application.
    • Entity Use Code: An identifier used to group like kinds of customers for exemption purposes. Select standard codes or type a custom code.
    • Purchase Order No (Number): The purchase order number assigned by the accounting, ERP, e-commerce, m-commerce, or POS application.
    • Salesperson Code: The salesperson identifier assigned by the accounting, ERP, e-commerce, m-commerce, or POS application.
    • Tax Override Type: The type of the tax override. Select:
      • None (default): No tax override is associated with this document.
      • TaxAmount: Override the amount of tax associated with the transaction. Use this selection when a tax has already been calculated and AvaTax should not recalculate the tax on this document.
      • Exemption: Override an exemption certificate entry and make the transaction taxable.
      • TaxDate: Override the tax calculation date in order to obtain a specific tax rate that was in effect at some point in the past.
    • Tax Override Amt: The amount of tax already calculated and collected for the transaction.
    • Tax Override Date: The date the tax should be calculated for the transaction.
    • Tax Override Reason: The reason the tax override occurred.
    • Adjustment Reason: A reason for making the transaction adjustment. Select:
      • Bad Debt
      • Exemption Certificate Applied
      • Item Exchanged
      • Item Returned
      • Offline
      • Other (Explain)
      • Price or Quantity Adjusted
      • Reconciled with General Ledger
      • Sourcing Issue
    • Description: An explanation of why Other was selected as the Adjustment Reason.
  7. If you want to add one or more lines, on the Lines tab, click Add New Line and at a minimum complete the following fields:
    • Line No
    • Item - use "UPC:" followed by the 12 to 14 digit UPC
    • Quantity
    • Amount
  8. You may enter separate addresses for each line using the origin and destination hyperlinks, which opened windows identical to those used for the origin and destination addresses of the document.

    The following fields appear on the Lines tab and may be completed.

    • Line No (Number): A unique identifier for the line item on the document. Line numbers are normally assigned sequentially beginning at 1, else it is populated with a negative number.
    • Item: The code or SKU used to identify the product, service, or charge.
    • Item Description: A brief description of the product, service, or charge.
    • Entity Use Code: An identifier used to group like kinds of customers for exemption purposes. Select standard codes or type a custom code.
    • Tax Code: A unique identifier associated with items or tax rules to create custom taxing situations.
    • Exemption No (Number): The exemption certificate number for the customer.
    • Quantity: The quantity of the items (products or services) being processed. The quantity is populated with a zero if left blank.
    • Amount: The extended currency price (Quantity X unit price). The amount is populated with a zero if left blank.
    • Buyer's VAT No (Number): The VAT number of the buyer.
    • Tax Included: An option to indicate the document already includes the transaction tax. By default, Tax Included is not checked.
    • Apply Discount: An option to apply the document-level discount to the selected line item. By default, Apply Discount is not checked
    • Reference 1: A user-defined field that allows an accounting, ERP, e-commerce, m-commerce, or POS application to pass information to AvaTax.
    • Reference 2: A user-defined field that allows an accounting, ERP, e-commerce, m-commerce, or POS application to pass information to AvaTax.
    • Revenue Account: A user-defined general ledger revenue account number from the accounting, ERP, e-commerce, m-commerce, or POS application.
    • Tax Override Type: The type of the tax override. Select:
      • None (default): No tax override is associated with this Document.
      • TaxAmount: Override the amount of tax associated with the transaction. Use this selection when a tax has already been calculated and AvaTax should not recalculate the tax on this document.
      • Exemption: Override an exemption certificate entry and make the transaction taxable.
      • TaxDate: Override the tax calculation date in order to obtain a specific tax rate that was in effect at some point in the past.
      • AccruedTaxAmount: Enter the tax amount to be accrued for purchase Invoices or inventory transfer invoices of $0.00. Note that all lines need an AccruedTaxAmount.
    • Tax Override Amt: The amount of tax already calculated for the transaction (document or line) or the accrued tax amount. Note that all lines need a Tax Override Amt if AccruedTaxAmount is selected for Tax Override Type.
    • Tax Override Date: The date the tax should be calculated for the transaction.
    • Tax Override Reason: The reason the tax override occurred.
  9. Click Add.
  10. Click Calculate Tax in the left sidebar. The supported UPC causes the tax to be calculated using an associated AvaTax System tax code. An unsupported UPC results in a taxable transaction and uses the P0000000 tax code.
    AvaTaxCalc-Transactions-CalcTax.png
    • The results of the tax calculation are displayed at the bottom of the Document tab and inside each line, including information about the:

      AvaTaxCalc-Transactions-CalcTaxResults.png

      • Tax amounts
      • Tax rates
      • Jurisdictions
  11. Click Save as Uncommitted or Save as Committed.
    Note:
    Click Calculate Tax to recalculate tax after each change.

How to format the import UPCs template

The Import Data tool allows you to easily import a large number of predefined UPC with the Import Bulk UPCs Toolkit.

  1. The column headings in the import file must use the labels exactly as shown below. The individual data fields must conform to the type (Size) and use restrictions listed. Make sure the item code (Column K) contains "UPC:NNNNNNNNNNNN" in the transaction import format.
    Column Column Heading Type (Size) Use Description
    A UPC Text (50) Required Universal Product Code, a unique 12-digit number assigned to retail merchandise that identifies both the product and the vendor that sells the product.
    B UPCDescription Text (255) Required Description for the UPC.
    C TaxCode Text (25) Required An AvaTax System tax code or custom tax code that is mapped to UPC.
    D EffDate DateTime Required Date from which UPC is effective
    E EndDate DateTime Required End Date
  2. Import a transaction

Report on the use of UPCs

AvaTax can generate reports that include UPC information.

  1. On the Reports tab, click Export Reports under Standard Sales Tax Reports.
  2. On the Reports screen, select a company.
    AvaTaxCalc-Reports-SelectCoorSRE.png
  3. Select the Document Lines or Document Line Detail report.
  4. Type or select values for the report fields.
  5. Click Generate. The item code and item code description reflect the UPC and any description used in the transaction.
    • The Item Code is the UPC used on the line.
    • The Item Code Description is the Item Description used on the line. If the item description does not exist, AvaTax reports the UPC description for the UPC on the line.

 

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