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Install and Configure Avalara AvaTax for Microsoft Dynamics AX Retail

After you activate AvaTax Update and set up your company profile, install and configure AvaTax Update for your accounting software. During configuration, customize your setup to fit your unique business needs for things like:

  • Tax calculation settings for various tax types
  • Exemption settings if you have exempt customers
  • Product taxability settings

Alter these settings when your business needs change.

We recommend you contact Avalara Professional Services before you install and configure AvaTax Update for your accounting software for help with implementation.

Download AvaTax Update for your accounting software

To connect your accounting software to AvaTax Update, download your integration software. 

  1. In AvaTax Update, go to Settings > Manage Account. Avalara Account opens in a new tab.
  2. In Avalara Account, go to Connectors.
  3. Click the arrow next to the name of your software to download the connector you need.
  4. In your Downloads folder, right-click the .zip file and extract the installation folder or file (.exe or .pdf or .msi). 

Install AvaTax Update for your accounting software

  1. Install AvaTax Update for Microsoft Dynamics AX 2012.
  2. Once you've downloaded the .zip file from AvaTax Update, extract it in your local drive.
  3. Run Avalara AvaTax for Microsoft Dynamics AX Retail 2012 R3 CU12-6.3.5000.138.02.00.exe to install AvaTax Update for Microsoft Dynamics AX Retail.
  4. In the Custom Setup dialog box, choose whether to install AvaTax Update with or without a Help file, and then click Install.
  5. In the Installation succeeded dialog box, click Finish to exit the setup wizard.

Configure

Configure AvaTax Update for Microsoft Dynamics AX 2012

The Configuration window opens after you complete the setup wizard, allowing you to edit and configure your settings.

  1. Optional: If you're making changes after installation, to open the Configuration window, go to AvaTax Update > Area page, and then click Configuration Setting.
  2. To edit fields in the Account Credentials section, click Edit Settings, add or modify the following details, and then click Verify Credentials:
    Field Action
    • Account Number
    • License Key
    Use the information provided in an email from Avalara (sent to the email account you used to activate your account). It must match what's saved in AvaTax Update.
    URL Enter https://development.avalara.net if you have an AvaTax Update development account or https://avatax.avalara.net if you have an AvaTax Update production account.
    • User name
    • Password
    Use the information provided in an email from Avalara (sent to the email account you used to activate your account). It's the same credentials you use to log in to AvaTax Update.
    Company Code Select your AvaTax Update company code
  3. Complete or modify fields on the remaining tabs, using the following information, and then click Close to save your changes:
    • The General tab:
      Section Field and description
      General Options
      Return Order Address

      Return Order Address: Select the address you want to use for sales tax calculation of return orders and credit memos.

      Shipping Options Control the assignment of tax codes to additional charge items. Available additional charge items display on the left, and you can assign them to tax codes associated with freight or miscellaneous charge references found on the right.
      Adapter Options
      • Request Timeout (In seconds): Enter the length of time to wait for AvaTax Update to respond to calculation requests. We recommend that you don't adjust this setting.
      • Enable logging: This function is primarily used for troubleshooting issues. If you choose to enable logging, all success, warning, and error messages are included in the log. Only enable logging if you've been instructed to do so by Avalara Support, because it can significantly slow down your service.
      • Extensive logging: Select to automatically log AvaTax Update activities and save the details in a local log file.
    • The Tax Calculation tab:
      Section Field and description
      General Options
      • Always check address before calculating tax: Select to force an address validation of the sales/billing document prior to tax calculation. Generally only recommended if you enter ship-to address on-the-fly during the Microsoft Dynamics AX sales transaction entry process.
      • Enable credit note / return order tax override date: Generally recommended if you want to override the tax details for a credit note / return order.
      Tax Area Code
      • Sales tax group: Identifies the default sales tax group. Update customer or vendor area sales tax group codes in order to process sales tax calculations using AvaTax Update for Microsoft Dynamics AX 2012. We recommend selecting the AVATAX sales tax group.
      • Tax Group Code Mass Update: Accesses a utility to perform a mass updates of the sales tax group code on a range of customers.
    • The Address Validation tab:
      Section Field and description
      General Options

      Return Results in Uppercase: Select to save all address validation results in uppercase format.

      Perform Address Validation based on country names selected AvaTax Update only validates addresses in the United States and Canada.
    • The Consumer Use Tax tab:
      Section Field and description
      Consumer Use Tax
      Posting account
      • Use Tax liability account: Select the account to which you want to credit your vendor use liabilities.
      • GL Account to Debit: Select the type of account from which the accrual amount is to be debited.
      • Use Tax Debit GL Account: If you select the Single Account option in GL account to Debit, select the associated account from which the accrual amount is to be debited.
      Taxability
      • Apply Avalara Goods & Service Code mapped on item group when it’s not available on an item: Select to apply Goods and Service tax codes to manage item taxability. Assigning product and product categories to items gives you important jurisdictional subtlety in taxability. Avalara has predefined Avalara tax codes with a taxability profile in place for all US states.
      • Apply Avalara Goods & Service Code mapped on: Select the option appropriate to your business.
        • Item Code: The tax code sent to AvaTax Update will be Item code. If the Item code is missing, the Item group is sent. If both Item Code and Item group are missing, the Item Code is sent as blank. 
        • Procurement Category: The tax code sent to AvaTax Update will be Procurement Category. If the Procurement Category is missing, the Item Code is sent. If both Procurement Category and Item Code are missing, the Item Group is sent. 
    • The Project tab:
      Section Field and description
      Project Invoice Address Project Invoice Address: Select the appropriate project address for your invoice

Configure AvaTax Update for your accounting software

  1. Go to Microsoft Dynamics AX 2012 > Modules > Avalara AvaTax > Setup, and then click Configuration Setting.
  2. Complete or edit fields on the Retail tab using the following information, and then click Close to save your changes:
    Section Field and description
    General Options (Optional)
    • Disable Tax calculation: If you choose to disable tax calculation, your accounting software no longer uses AvaTax Update to calculate tax on transactions.
    • Disable Address Validation: If you disable address validation, AvaTax Update uses the customer's ship-to address to calculate the correct sales tax. Sales tax might be calculated incorrectly if this option is disabled.
    Tax Area Code Tax Group ID: Identifies the default sales tax group. Select AVATAX to use AvaTax Update as the tax calculation method.
    Initialize
    • Initialize: Click Initialize to format the store data and create the required retail jobs. Choose to schedule jobs in recurring batches or start processing now. Click OK.
    • Location to store mapping: Click to map locations to your stores. Match a location code to each store number.
    • Fetch tax rates: Click to fetch the tax rates from AvaTax Update and store it in Microsoft Dynamics AX.

Configure database

  1. Go to the Retail Channel database.
  2. Create an AvaTax Update table in the channel database. Execute the "AVA_AX2012_Retail_ChannelDbScript.sql" script. Execute this script for each channel and offline database.
  3. Go to Distribution schedule, select AVA-0001, and then click Run now. Make sure the status of all jobs is "Applied".

Configure retail server

  1. Go to the Retail Server IIS Installation directory (for example: C:\Program Files (x86)\Microsoft Dynamics AX\60\Retail Server\Package\bin).
  2. Copy following .dll files from the RetailServerComponent folder in the .zip file from AvaTax:
    • Avalara.AvaTax.Adapter.dll
    • Avalara.AvaTax.Adapter.dll.config
    • Avalara.Ax.CRT.dll
    • Avalara.Ax.CRT.Extension.dll
    • Avalara.Ax.Local.dll
  3. Open CommerceRuntime.config. Add the following after the <composition> node, and then save the .config file:

    <add source="assembly" value="Avalara.Ax.CRT.Extension" />

Configure offline MPOS

  1. Go to the MPOS Installation directory (for example: C:\Program Files (x86)\Microsoft Dynamics AX\60\Retail Modern POS\ClientBroker).
  2. Copy following .dll files from the OfflineMPOSComponent  folder in the .zip file from AvaTax Update:
    • Avalara.AvaTax.Adapter.dll
    • Avalara.AvaTax.Adapter.dll.config
    • Avalara.Ax.CRT.dll
    • Avalara.Ax.Local.dll
    • Avalara.Ax.Local.Extension.dll
  3. Open CommerceRuntime.MPOSOffline.config. Add the following after the <composition> node, and then save the .config file:

    <add source="assembly" value="Avalara.Ax.Local.Extension" />

Reset IIS

  1. Open the command prompt with admin access.
  2. Type iisreset, and then hit Enter.

Assign AvaTax as the sales tax group to your retail store

  1. Go to Microsoft Dynamics AX 2012 > Area Page > <your company> > Retail.
  2. On the Retail page, click Retail Store to view your stores.
  3. On the Retail Store page, click Store Number to edit the store details.
  4. On the Store Details page, go to General > Sales Tax, and then select AvaTax for the Sales Tax Group.
  5. Click Save.