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Install and Configure Avalara AvaTax for Microsoft Dynamics CRM

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.

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. Log in to Microsoft Dynamics CRM as a System Customizer.
  2. Go to Settings > Solutions > Import and select the .zip file from AvaTax.
  3. Use the wizard to install AvaTax for Microsoft Dynamics CRM.

Configure

Configure AvaTax Update for your accounting software

To configure your company settings:

  1. Log in to Microsoft Dynamics CRM as a System Customizer.
  2. Go to Settings > Solutions > Avalara AvaTax > Configuration.
  3. On the AvaTax Configuration page, fill in the following fields, and then click Test Connection.
    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.
    Development Environment For development accounts, ensure that this option is enabled. For production accounts, ensure that this option isn't enabled.
    Company Code This is the code you entered when you activated your AvaTax Update account. Every accounting software that works with AvaTax Update uses a company code to identify itself to AvaTax Update. Here's some help if you can't find your company code in Microsoft Dynamics CRM.
  4. Go to Settings > Avalara AvaTax.
  5. On Active Avalara AvaTax, click AvalaraTax.
  6. On AvalaraTax page, specify the following options, and then click Save.
    Field Action

    Commit

    Optional: If this option is enabled, transactions are automatically committed to AvaTax Update and the Doc Status of this transaction is shown as Committed in AvaTax Update. 
    Enable logging? Optional: 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.
    Status Optional: If you choose to disable Status, Microsoft Dynamics CRM no longer uses AvaTax Update to calculate tax on transactions or validate addresses.

Configure Microsoft Dynamics CRM to map items to Avalara tax codes

Some products and services are taxed differently in different jurisdictions. Apply Avalara tax codes to products and services you sell to help account for this varying taxability. There are a few different ways you can apply, or map, Avalara tax codes to your products and services:

  • Map items to predefined Avalara tax codes; associate a code with each item you sell so AvaTax knows which tax rate to apply 
  • Map items to universal product codes (UPCs)

Items that aren't mapped to Avalara tax codes are treated as tangible personal property (TPP), and are fully taxed during calculation.

If you're mapping in Microsoft Dynamics CRM, first import Avalara tax codes into Microsoft Dynamics CRM. Import the tax codes in one of these file formats: .xls, .xlsx, or .csv (comma-separated values) and use the column heading labels exactly as follows:

  • Type Code
  • Description
  • Additional Information  

To import Avalara tax codes:

  1. Go to Settings > Extensions > AvaTax Type Codes.
  2. Import Avalara tax codesHoverTT.png

Configue Microsoft Dynamics CRM to exempt customers from sales tax with entity/use codes

If you regularly sell to customers who're exempt from tax, you need to store their exemption certificates and consistently exempt their purchases. There's more than one way to exempt customers:

  • If you already have a method to store exemption certificates, send AvaTax your customers' exemption certificate numbers using your accounting software, or send us entity/use codes that explain why the customer should be exempt.
  • If you don't have a way to store certificates, use ECMS or CertCapture, depending on your needs:
    • To exempt buyers and store an image of their exemption certificates, use ECMS.
    • To exempt customers, and to request, generate, and store exemption certificates, use CertCapture.
You can exempt customers, but that doesn't mean you're compliant. You need valid documentation of your buyer's exemption certificate to support tax exemptions in case of an audit. Valid documentation includes copies of valid exemption certificates and the associated invoices. If you exempt customers from tax with exemption numbers or entity/use codes, keep organized records for all exempt purchases. Exemption Certificate Example - Thumb.png

Exemptions are valid only for the address registered for this account. To exempt a document, ensure that the document ship-to address matches the account's registered address. To add entity use codes to your account:

  1. Go to Sales > Collateral > Accounts and select an account. The account page opens.
  2. To make the account taxable, in the Summary section, for Customer Type, select Taxable.
  3. To exempt the account, for Customer Type, select Exempt and then add the entity/use code.

In Microsoft Dynamics CRM, click Calculate Tax to calculate sales tax using AvaTax Update. Sales tax calculation isn't automatically triggered after you save or modify a document. 

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