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Adjust Transactions in AvaTax

This article applies to:Avalara AvaTax

TransactionsHoverTT.png in AvaTax are modeled after a document (invoice, credit memo, or return) with one or more lines. Learn how to work with transactions in AvaTax.

Need some help importing? Check out our best practices for importing transactions.

Adjust a transaction

Adjust a transaction if the transaction in your accounting system doesn't match the transaction in AvaTax. You can make a change that affects the entire document or an individual line item. The steps below explain how to make these changes as well as how to add, edit, and delete lines on a transactionHoverTT.png

How to adjust transactions

  1. On the Transactions tab, click a Doc Code hyperlink.
    AvaTaxCalc-Transactions-SelectTransactionHyperlink.png
  2. On the Transaction Detail screen, click Edit.
  3. On the Edit: Transaction Adjustment screen, adjust the transaction as desired. You can:
    • Change origin and destination addresses.
    • Change fields on the Document tab. You can adjust the following fields:
      AvaTaxCalc-Transactions-AdjustDocTab.png
    • 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: The date associated with the document. The document date is used for:
      • Tax calculation date
      • Reporting date associated with the document
    • Document Type: A selection of the type of transaction the document represents. Select:
      • Sales Order (temporary document not saved in the system)
      • Sales Invoice
      • Purchase Order (temporary document not saved in the system) 
      • Purchase Invoice
      • Inventory Transfer Order (temporary document not saved in the system)
      • Inventory Transfer Invoice
      • Return Order (temporary document not saved in the system)
      • ​Return Invoice
      • Reverse Charge Order (temporary document not saved in the system)
      • Reverse Charge Invoice
    • 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: This field is displayed only when the Tax Override Type is selected as TaxAmount. This is the amount of tax already calculated and collected for the transaction.
    • Tax Override Date: This field is displayed only when the Tax Override Type is selected as Taxdate. The date the tax should be calculated for the transaction.
    • Tax Override Reason: This field is displayed only when the Tax Override Type is selected as Exemption. 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.
  4. Add, edit, copy and delete lines on the Lines tab.
    • 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.
      AvaTaxCalc-Transactions-AdjustLinesTab.png
    • The following fields of the Lines tab can be adjusted:
      • 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.
    • After you make you changes, click OK.
  5. Click Calculate Tax.
    AvaTaxCalc-Transactions-CalcTax.png
  6. Select an Adjustment Reason on the Document tab.
  7. Click Save as Uncommitted or Save as Committed.

Notes:

  • Click Calculate Tax to recalculate tax after each change.
  • Four fields on the Transaction Document tab cannot be edited:
    • Document Code
    • Document Status
    • Tax Calculation Date
    • Document Type
  • Transactions adjusted in AvaTax aren't adjusted in your accounting, ERP, e-commerce, m-commerce, or POS application.

Commit a transaction

Committed transactions are automatically included in AvaTax reports. You commit a transaction to change it's status from void or uncommitted to committed. If you use Returns, only committed transactions are filed. The steps below explain how to commit transactionsHoverTT.png in AvaTax.

Keep in mind that uncommitted transactions don't automatically appear in all AvaTax reports or on tax returns. Certain reports have advanced filtering options to report on documents with these statuses.

How to commit transactions

  1. On the Transactions tab, select the check box next to one or more document codes and click Commit.

    AvaTaxCalc-CommitTransactions.png

  2. Review the affected transactions.
  3. Click OK.

    AvaTaxCalc-CommitTransactions-ok.png

  4. The transaction Doc Status changes from Uncommitted to Committed

    AvaTaxCalc-CommitTransactions-ok.png

Note:
Committed transaction cannot be updated.

Delete a transaction

It isn't possible to delete transactions from AvaTax. AvaTax maintains a history of each transactionHoverTT.png for audit purposes and deleting a transaction would invalidate this history. Void the transactions instead.

Void a transaction

If there is a transaction in AvaTax that isn't in your accounting system (and you've determined it shouldn't be there) void the transaction. Voided transactions don't automatically appear in all AvaTax reports or on tax returns. Certain reports have advanced filtering options to report on documents with these statuses.

The steps below explain how to void a transactionHoverTT.png in AvaTax.

How to void transactions

  1. On the Transactions tab, select the check box next to one or more Document Codes.

    AvaTaxCalc-VoidTransactions.png

  2. Click Void.

    AvaTaxCalc-VoidTransactions-clickbutton.png

  3. Review the list of affected transactions.
  4. Click OK.

Note:
You can change the status of a void transaction by editing the details. Simply adjust the amount and then commit/uncommit the transaction.

AvaTaxCalc-VoidTransactions-result.png