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Install and Configure Avalara AvaTax for Workday

This article applies to:Avalara AvaTax for Workday

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.

AvaTax Update for Workday requirements

  • System requirement for AvaTax Update for Workday integration is a standard Workday tenant
  • The transport protocols used for AvaTax Update for Workday integration:
    • WWS
    • SOAP
  • Authentication requirements for AvaTax Update for Workday are handled by Workday as the integration is installed and deployed inside Workday
  • This infographic shows the data flow of the AvaTax Update for Workday integration and illustrates where AvaTax Update interacts with Workday:

Workday_DataFlow.png

Configure Workday before installing AvaTax Update

Create integration system users 

To create an integration system user:

  1. Search for Create Integration System User and select it.
  2. Create the following integration system users for the indicated modules, and then click OK and Done:
    Integration system user Module
    Ava_ISU_CustInv_Reconciliation AvaCustInvoiceReconciliation
    Ava_ISU_CustInv_TaxCalc AvaCustInvoiceTaxCalc
    Ava_ISU_Options_Maintenance AvaTaxOptions
    Ava_ISU_CustInv_Post AvaPostCustomerInvoices
    Ava_ISU_CustInv_Err_Recovery AvaTaxCalcErrRecovery
    Ava_ISU_CustAddr_Validation AvaValidteCustomerAddress

Create domain security groups

To create domain security groups:

  1. Create Avalara_Integration_Security_Group:
    1. Search for Create Security Group and select it.
    2. Add the following information, and then click OK and Done:
      Field Value
      Type of Tenanted Security Group Integration System Security Group (Unconstrained)
      Name Avalara_Integration_Security_Group
  2. Create Avalara_BP_Security_Group:
    1. Search for Create Security Group and select it.
    2. Add the following information, and then click OK and Done:
      Field Value
      Type of Tenanted Security Group User-Based Security Group
      Name Avalara_BP_Security_Group

Assign integration system users to domain security groups

Assign integrated system users to three domain security groups.

  1. Assign users to domain security group Avalara_Integration_Security_Group:
    1. Search for View Security Group and select it.
    2. In the Security Group field, search for and select Avalara_Integration_Security_Group, and then click OK.
    3. On the View Integration System Security Group (Unconstrained) Avalara_Avalara_Security_Group page, go to Related Actions > Integration Security Group (Unconstrained) and click Edit.
    4. In the Integration System Users field, add the following users, and then click OK and Done:
      • Ava_ISU_CustInv_Reconciliation
      • Ava_ISU_CustInv_TaxCalc
      • Ava_ISU_Options_Maintenance
      • Ava_ISU_CustInv_Post
      • Ava_ISU_CustInv_Err_Recovery
      • Ava_ISU_CustAddr_ValidationCustAddr_Validation
  2. Assign users to domain security group Avalara_BP_Security_Group:
    1. Search for View Security Group and select it.
    2. In the Security Group field, search for and select Avalara_BP_Security_Group, and then click OK.
    3. On the View User-Based Security Group Avalara_BP_Security_Group page, go to Related Actions > User-Based Security Group and click Assign Users.
    4. In the Integration System Users field, add the following users, and then click OK and Done:
      • Ava_ISU_CustInv_Reconciliation
      • Ava_ISU_CustInv_TaxCalc
      • Ava_ISU_Options_Maintenance
      • Ava_ISU_CustInv_Post
      • Ava_ISU_CustInv_Err_Recovery
      • Ava_ISU_CustAddr_ValidationCustAddr_Validation

Assign domain security policies 

  1. Search for Domain Security Policies for Functional Area and select it.
  2. Use the information in the table below to complete these steps for each domain security policy:
    1. In Functional Area, search for the functional area and select it. Click OK.
    2. In the left pane, select the domain security policy, and then click Edit Permissions.
    3. Go to the permission section listed in the table below, click + to add the following, and then click OK and Done:
      • In Security Group field, search for Security Groups Valid for Policy and select it.
      • From the list, select Avalara_Integration_Security_Group.
      • Select the associated operation from the table below.
Functional area Domain security policy  Permission section Operation
Common Financial Management Set Up: Company > Set Up: Company General Integration Permissions Get
Common Financial Management Set Up: Worktags > Set Up: Maintain Custom Worktags Integration Permissions Get
Customer Accounts Manage: Customer Invoice Report/Task Permissions View
Customer Accounts Manage: Customer Invoice Integration Permissions Get
Put
Customer Accounts Set Up: Sale Item Integration Permissions Get
Customer Accounts Process: Customer Invoice (NEW) > Process: Customer Invoice - Cancel Integration Permissions Get
Put
Customer Accounts Process: Customer Invoice (NEW) > Process: Customer Invoice - Cancel Report/Task Permissions View
Modify
Customer Accounts Process: Customer Invoice (NEW) > Process: Customer Invoice - Change Integration Permissions Get
Put
Customer Accounts Process: Customer Invoice (NEW) > Process: Customer Invoice - Change Report/Task Permissions View
Modify
Customer Accounts Process: Customer Invoice (NEW) > Process: Customer Invoice - Collections Integration Permissions Get
Put
Customer Accounts Process: Customer Invoice (NEW) > Process: Customer Invoice - Collections Report/Task Permissions View
Modify
Customer Accounts Process: Customer Invoice (NEW) > Process: Customer Invoice - Core Integration Permissions Get
Put
Customer Accounts Process: Customer Invoice (NEW) > Process: Customer Invoice - Core Report/Task Permissions View
Modify
Customer Accounts Process: Customer Invoice (NEW) > Process: Customer Invoice - Other Integration Permissions Get
Put
Customer Accounts Process: Customer Invoice (NEW) > Process: Customer Invoice - Other Report/Task Permissions View
Modify
Customer Accounts Process: Customer Invoice (NEW) > Process: Customer Invoice - View Integration Permissions Get
Put
Customers Access Customer (Segmented) Integration Permissions Get
Customers Reports: Customer Integration Permissions Get
Customers Set Up: Customer > Set Up: Customer Maintenance Integration Permissions Get
Put
Integration Integration Debug Report/Task Permissions View
Modify
Integration Integration Debug Integration Permissions Get
Put
Integration Integration Event Report/Task Permissions View
Modify
Integration Integration Event Integration Permissions Get
Put
Integration Integration Process Report/Task Permissions View
Modify
Integration Integration Process Integration Permissions Get
Put
Integration Integration Reports Report/Task Permissions View
Modify
Integration Integration Reports Integration Permissions Get
Put
System Business Process Administration > Business Process Definition View Report/Task Permissions View
System Business Process Administration > Business Process Definition View Integration Permissions Get
System Business Process Administration > Business Process Reporting Report/Task Permissions View
System Business Process Administration > Business Process Reporting Integration Permissions Get
System Custom Object Management Integration Permissions Get
Put

Assign business process security policies to Customer Invoice Event

  1. Search for Business Process Security Policies for Functional Area and select it.
  2. Add the following information, and then click OK.
    • Functional Area: Select By Business Process > Customer Invoice Event > Customer Accounts
    • Business Process: Leave this field blank
  3. In the left pane, select Customer Invoice Event, and then click Edit Permissions. When you finish updating the permissions, click OK.
    1. Under Who Can Start the Business Process > Initiating Action as Submit Customer Invoice (Web Service) > Security Group field, search for and select Avalara_Integration_Security_Group and Avalara_BP_Security_Group.

      Workday_IC_1BP1.png

    2. Under Who Can Start the Business Process > Initiating Action as Submit Customer Invoice Adjustment (Web Service) > Security Group field, search for and select Avalara_Integration_Security_Group and Avalara_BP_Security_Group.

      Workday_IC_1BP2.png

    3. Under Who Can Do Action Steps in Business Process > Security Group field, search for and select Avalara_BP_Security_Group.

      Workday_IC_1BP3.png

    4. Under Who Can Do Actions on Entire Business Process > Action Step View All and Approve, select Avalara_BP_Security_Group in Security Group field.

      Workday_IC_1BP4.png

Activate security changes

To activate security changes:

  1. Search for Activate Pending Security Policy Changes and select it.
  2. In Comment, type Installation of AvaTax Integration, and then click OK.
  3. Select Confirm, and then click OK.

Configure business processes for Customer Invoice Event

To configure business processes for Customer Invoice Event:

  1. Create business process steps A1 and A2:
    1. Search for bp: cust inv and select Customer Invoice Event (Default Definition).
    2. On the View Business Process Definition Customer Invoice Event page, go to Related Actions > Business Process and click Edit Definition.
    3. Select the date, and then click OK.
    4. In the Business Process Steps table, add the following details, and then click OK:
      • Click + to add a row, and add the following details:
        Field Value
        Order a1
        Notes Call AvaTax for Sales tax Calc
        Type Integration
      • Click + to add a row, and add the following details:
        Field Value
        Order a2
        Notes Tax Calc Successful?
        Type Action
        Specify Review Customer Invoice
        Group Avalara_BP_Security_Group
  2. If you receive the Invalid Integration Setup for Integration Workflow step error, ignore it. This error resolves after you configure the business process customer invoice event.
  3. Create condition rule Not Locked:
    1. Search for bp: cust inv and select Customer Invoice Event (Default Definition).
    2. On the View Business Process Definition Customer Invoice Event page, go to the Business Process Step table. In the Step column for A1, go to Related Actions > Business Process and click Create Condition Rule.
    3. In the Create Condition Rule page, complete the following, and then click OK :
      Field Value
      Description Type Not Locked
      And/Or And
      Source External Field or Condition Rule Locked in Workday
      Relational Operator Not equal to
      Comparison Type Value specified in this filter
      Comparison Value Select this option
  4. Create condition rule Using AvaTax:
    1. Search for bp: cust inv and select Customer Invoice Event (Default Definition).
    2. In the View Business Process Definition Customer Invoice Event page, go to the Business Process Step table. In the Step column for A1, go to Related Actions > Business Process and click Create Condition Rule.
    3. In the Create Condition Rule page, complete the following, and then click OK:
    Field Value
    Description Using AvaTax
    And/Or And
    Source External Field or Condition Rule Uses Third Party Tax Service
    Relational Operator Equal to
    Comparison Type Value specified in this filter
    Comparison Value Select this option
  5. Create condition rule Tax Calc Failed:
    1. Search for bp: cust inv and select Customer Invoice Event (Default Definition).
    2. On the View Business Process Definition Customer Invoice Event page, go to the Business Process Step table. In the Step column for A2, go to Related Actions > Business Process and click Create Condition Rule.
    3. On the Create Condition Rule page, complete the following, and then click OK:
    Field Value
    Description Tax Calc Failed
    And/Or And
    Source External Field or Condition Rule Third Party Tax Calculation Details
    Relational Operator Starts with
    Comparison Type Value specified in this filter
    Comparison Value Tax Calculation Error
  6. Setup step conditions for A1:
    1. Search for bp: cust inv and select Customer Invoice Event (Default Definition).
    2. On the View Business Process Definition Customer Invoice Event page, go to the Business Process Step table. In the Step column for A1, go to Related Actions > Business Process and click Maintain Step Condition.
    3. On Maintain Step Conditions page, complete the following, and then click Done:
      • Select Effective Date, and then click OK:
      • In the Entry Conditions table, click + and select Using AvaTax condition rule.
      • In the Entry Conditions table, click + and select Not Locked condition rule.

        Workday_IC_3ConditionRule4.png

  7. Setup step conditions for A2:
    1. Search for bp: cust inv and select Customer Invoice Event (Default Definition).
    2. On the View Business Process Definition Customer Invoice Event page, go to the Business Process Step table. In the Step column for A2, go to Related Actions > Business Process and click Maintain Step Condition.
    3. On the Maintain Step Conditions page, complete the following, and then click Done:
      • Select Effective Date, and then click OK.
      • In the Entry Conditions table, click + and select Tax Calc Failed condition rule.

        Workday_IC_3ConditionRule5.png

Create and configure custom object TaxDetails

To create and configure TaxDetails custom object :

  1. Create the TaxDetails custom object:
    1. Search for Create Custom Object and click Create Custom Object. In the Create Custom Object page, complete the following, and then click OK:
      • Workday Object: Type Customer Invoice Line
      • Customer Object Names: Type TaxDetails
  2. Add details to TaxDetails:
    1. In the General Settings section, click Edit. Make sure the Allow Multiple Instances per Object option isn't selected. Complete the following, and then click Next:
      • Custom Object Name: Automatically displays TaxDetails
      • Web Service Alias: Automatically displays TaxDetails
    2. In the Field Definitions section, click Edit. In Proposed New Fields, click Add to add a field using the table below. In Display Order, type a letter. Repeat the step for each row in the table, and then click Next. After all the fields are created, the fields are sorted based on the value of this field and displayed accordingly:
      Field label Field Type Display Order Details > Web Service Alias
      TaxType1 Text A taxtype1
      TaxAmount1 Decimal B taxamount1
      TaxRate1 Decimal C taxrate1
      JurisCode1 Text D juriscode1
      JurisName1 Text E jurisname1
      TaxType2 Text F taxtype2
      TaxAmount2 Decimal G taxamount2
      TaxRate2 Decimal H taxrate2
      JurisCode2 Text I juriscode2
      JurisName2 Text J jurisname2
      TaxType3 Text K taxtype3
      TaxAmount3 Decimal L taxamount3
      TaxRate3 Decimal M taxrate3
      JurisCode3 Text N juriscode3
      JurisName3 Text O jurisname3
      TaxType4 Text P taxtype4
      TaxAmount4 Decimal Q taxamount4
      TaxRate4 Decimal R taxrate4
      JurisCode4 Text S juriscode4
      JurisName4 Text T jurisname4
    3. In the Permissions section, click Edit, search and add the following Domain, and then click Next
      • Manage: Customer Invoice
      • Process: Customer Invoice.
    4. In the Summary section, review the settings shown:
      • If the settings are correct, click OK
      • If you want to continue or edit the settings later, click Save For Later
    5. Click Done.

Create and configure custom report AvaCustInvErrs for error handling

To create and configure the AvaCustInvErrs custom report :

  1. Create the AvaCustInvErrs custom report :
    1. Search for Create custom report and click Create Custom Report. On the Create Custom Report page, complete the following, and then click OK:
    Field Value
    Report Type AvaCustInvErrs
    Report Type Select Advanced
    Data Source Select All Business Process Transactions of Type Awaiting Person in Date Range
    Temporary Report Select this option if this report is temporary
    Enable as Web Service Select this option
  2. Add details to AvaCustInvErrs custom report, and then click OK:
    1. Ensure that Primary Business Object is Action Event.
    2. In the Item section, create a row for Business Process Transaction. Go to Additional Information > Columns > Item and complete the following:
      Field Value
      Business Object Type Business Process Transaction
      Field Type Workday ID
      Column Heading Override XML Alias Type Event_ID
    3. In the Item section, create a row for For. Go to Additional Information > Columns > Item and complete the following:
      Field Value
      Business Object Type For
      Field Type Workday ID
      Column Heading Override XML Alias Type Invoice_ID
    4. In the Group Column Headings section, create a row for Business Process Transaction. Go to Additional Information > Columns > Group Column Headings and complete the following:
      Field Value
      Business Object Type Business Process Transaction
      Column Heading Override XML Alias Type Business_Process_Transaction
    5. In the Group Column Headings section, create a row for For. Go to Additional Information > Columns > Group Column Headings and complete the following:
      Field Value
      Business Object Type For
      Column Heading Override XML Alias Type For
    6. On the Filter tab, create a row for And. Go to Additional Information > Filter and complete the following:
      Field Value
      And/OR Select And
      Field Select Business Process Step Awaiting Action
      Operator Select exact match with the selection list
      Comparison Type Select Value specified in this filter
      Comparison Value Select Customer invoice event > Customer invoice event (Default Definition) > Customer invoice event (Default Definition) step a2 – Action
    7. On the Prompts tab, create a row for And. Go to Additional Information > Prompts and complete the following:
      • Instructions: Select And
      • Runtime Date Prompts: Select Effective Date and Entry Date as the date range for the validity of this report
      • Display Prompt Values in Subtitle: Select this option
      • Prompt Defaults: To create an error report for a business process, add a row for each of the following fields with the indicated values:
        Field Label for Prompt XML Alias Default Type Default Value
        Start Date Start_Date No default value  
        End Date End_Date No default value  
        Business Processes Business_Processes Specify default value Customer Invoice Event
    8. In the Share tab, specify the sharing options for this report.Go to Additional Information > Share and complete the following:
      Field Value
      Report Definition Sharing Options Select Share with specific authorized groups and users
      Authorized Groups Select Avalara_Integrations_Security_Group
      Authorized Users Select logged in user and then select Ava_ISU_CustInv_err_Recovery
    9. Go to Additional Information > Advanced to view the definitions and selections made for this report.

Install

Download AvaTax for your accounting software

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

  1. In AvaTax, on the Home tab, click Get Started.
  2. In the Download and Install Your Integration Software section, click Download Software
  3. In the Download Your AvaTax Connector Software window, click the arrow next to the name of your software, and then download the latest version of your integration. If the file isn't available for download, clear your browser's cache, and log back into AvaTax.
  4. Save the .zip file somewhere on your computer that's easy to find.
  5. Right-click the .zip file and extract the installation folder or file (.exe, .pdf, or .msi). 

Install AvaTax for your accounting software

To install AvaTax Update for Workday:

  1. Extract the contents from the downloaded AvaTax Update .zip file.
  2. Open Workday Studio.
  3. Right-click Workday2AvaTax_AR.clar and click Import > Solution Catalog CLAR
  4. The Project Explorer displays the .clar file details. Click Finish.
  5. The Cloud Explorer displays Workday environment details. In the Cloud Explorer:
    1. Right-click the environment where you want to install Workday, and click Connection Details.
    2. Type your Workday credentials, click Test Connection, click OK, and then click OK.
    3. Click OK.
  6. Go to AvaCustInvoiceTaxCalc and double-click Assembly:
    1. In the Assembly editor, click AvaCustInvTaxCalc.
    2. Go to Design > Properties > Workday-In > Services.
    3. Click to add a new reference to custom object TaxDetails. In Select Custom Object window, select Active Custom Object, and from the right panel select TaxDetails.
  7. Go to AvaTaxCalcErrRecovery and double-click Assembly:
    1. In the Assembly editor, click AvaCustInvTaxCalcErrRecovery.
    2. Go to Design > Properties > Workday-In > Services.
    3. Click to add a new reference to custom object AvaTaxErrDetails. In Select Custom Object window, select Active Custom Object, and from the right panel select TaxDetails.
    4. Click to add a new reference to custom object Ava_CustInvErrs.
    5. In Add Custom RaaS Report window, click Next. SelectAvaCustInvErrs custom report, and then click Finish.
  8. In Project Explorer, right-click any of the folders and click Deploy to Workday
  9. In the Deploy to Workday window:
    1. Select Include source code in deployed CLAR, and then click Next.
    2. In Configured window, select Workday2AvaTax_AR, and then click Finish.
    3. Click I agree.
  10. On successful deployment, the Cloud Explorer displays the Workday package along with the installation date and time stamp.

Configure

Sign in to Workday, and then complete the following procedures to configure AvaTax Update for Workday.

Enable AvaTax Update in Workday

To enable AvaTax Update in Workday for your company:

  1. In Search, type Edit Company Accounting Details, and then click Edit Company Accounting Details.
  2. In Company field, type the name of the company for which you want to enable AvaTax Update.
  3. On the Edit Company Accounting Details page, under Customer Invoice Options, ensure that Use Third Party Tax Service is enabled, and then, in the Tax Service Name field, type AvaTax.

Configure the Customer Invoice Event (Default Definition) Business process

To configure the Customer Invoice Event (Default Definition) Business Process:

  1. Search for bp: cust inv and select Customer Invoice Event (Default Definition).
  2. On the View Business Process Definition Customer Invoice Event page, go to the Business Process Steps table, and click Configure AvaCustInvoiceTaxCalc.
  3. In the Integration field, select AvaCustInvoiceTaxCalc, and then click OK.
  4. On the Configure Integration Step Customer Invoice Event (Default Definition) step a1 – integration page, go to the Integration Criteria table, add the following details, and then click OK:
    • Value Type: Select Determine Value at Runtime
    • Value: Select Customer invoice or Adjustment 

This configuration resolves the Invalid Integration Step for Integration Workshop Step error that occurred after you configured the Business Process for Customer Invoice Event.

Add an ID

Skip this procedure if you've already added the AvaTaxOptions external ID.

To add an ID:

  1. In Search, type the company name.
  2. On the Company Details page, next to the company name, click Related Actions > Integration IDs > View IDs.
  3. Add an external ID AvaTaxOptions:
    1. On Integration IDs, click Related Actions > Integration IDs > Edit External IDs.
    2. In Edit External IDs, select the Effective Date, and then click OK.
    3. Click +, on the new row that's created in the table, either choose an existing system or type AvaTaxOptions.
    4. In ID Value, type the company code, click OK, and then click Done.
  4. Add the reference ID:
    1. On Integration IDs, click Related Actions > Integration IDs > Edit Reference ID.
    2. On the Edit Reference ID page, in the Reference ID Value field, type the company code, click OK, and then click Done.

Link all AvaTax Update integrations to users

To link all AvaTax Update integrations to users:

  1. Search for view sys and click View Integration System.
  2. On the View Integration System page, select AvaCustInvoiceReconciliation.
    1. On the View Integration System AvaCustInvoiceReconciliation page, click Related Actions >  Workday Account > Edit, select Ava_ISU_CustInv_Reconciliation and then click OK.
    2. On the Edit Account for Integration System page, click OK.
  3. On the View Integration System page, select AvaCustInvoiceTaxCalc.
    1. On the View Integration System AvaCustInvoiceTaxCalc page,click Related Actions >  Workday Account > Edit, select Ava_ISU_CustInv_TaxCalc and then click OK.
    2. On the Edit Account for Integration System page, click OK.
  4. On the View Integration System page, select AvaPostCustomerInvoices.
    1. On the View Integration System AvaPostCustomerInvoices page, click Related Actions >  Workday Account > Edit, select Ava_ISU_CustInv_Post and then click OK.
    2. On the Edit Account for Integration System page, click OK.
  5. On the View Integration System page, select AvaTaxCalcErrRecovery.
    1. On the View Integration System AvaTaxCalcErrRecovery page, click Related Actions >  Workday Account > Edit, select Ava_ISU_CustInv_Err_Recovery and then click OK.
    2. On the Edit Account for Integration System page, click OK.
  6. On the View Integration System page, select AvaValidateCustomerAddress.
    1. On the View Integration System AvaValidateCustomerAddress page, click Related Actions >  Workday Account > Edit, select Ava_ISU_CustAddr_Validation and then click OK.
    2. On the Edit Account for Integration System page, click OK.
  7. On the View Integration System, select AvaTaxOptions.
    1. On the View Integration System AvaTaxOptions page, click Related Actions >  Workday Account > Edit, select Ava_ISU_Options_Maintenance and then click OK.
    2. On the Edit Account for Integration System page, click OK.

Configure integration attributes

To configure integration attributes: 

  1. Search View Integration System and click View Integration System.
  2. On the View Integration System page, in Integration System field, type AvaTaxOptions, and then click OK.
  3. On the View Integration System AvaTaxOptions page, click Related Actions > Integration IDs > Configure Integration Attributes.
  4. On the Configure Integration Attributes for Integration System AvaTaxOptions page, fill in the following, and then click OK:
    Field Action
    • Service URL
    • Account Number / Username
    • License Key / Password
    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.
    Countries to update TaxDetails Add the countries for which you want to view the AvaTax Update calculated sales tax details.
    Optional: Item Worktags Define and add at the header/line level to have Item Worktags reference IDs sent as the tax code for the item.
    AvalaraCompanyCode Select either the Reference ID or the External ID that you created.
    Optional: Lock WD Invoice After Post to Avalara Select to lock the invoices in Workday after they're successfully posted to AvaTax Update. If this option isn't selected, the invoices remain unlocked in Workday.
    Optional: Process this Invoice Type as SalesOrder Select an invoice type to not post to AvaTax Update. Also, the document type won't change from sales order to sales invoice.
    Optional: Send Item Group to AvaTax Select to send the item group reference ID as the item code from Workday to AvaTax Update.

To make sure your AvaTax Update for Workday tax profile is configured correctly, send a test transaction.

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