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.
If you've previously installed the integration, learn how to upgrade to the latest version.
Download AvaTax Update for your accounting software
To connect your accounting software to AvaTax Update, download your integration software.
- In AvaTax Update, go to Settings > Manage Account. Avalara Account opens in a new tab.
- In Avalara Account, go to Connectors.
- Click the arrow next to the name of your software to download the connector you need.
- 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
You must install AvaTax Update for Microsoft Dynamics GP on all computers that use both Microsoft Dynamics GP and AvaTax Update, including servers and clients (workstations/computers).
To install AvaTax Update for Microsoft Dynamics GP:
- Make sure everyone in your organization who uses Microsoft Dynamics GP is logged out and Microsoft Dynamics GP isn't open on your computer.
- Double-click the installation file you downloaded from AvaTax Update.
- In the Destination Folder dialog box, click Install.
- On the Installation Succeeded screen, click Finish.
Configure AvaTax Update for your accounting software one company at a time. Use the procedures in these sections, in order, to:
- Choose a company to configure
- Configure AvaTax Update with the setup assistant
- Go to the AvaTax Update configuration menu to make any additional changes to your configuration before you start using AvaTax Update
Choose the company to configure
To choose the company to configure:
- When the message "Do you wish to include new code now?" displays, click Yes. This message displays the first time you open Microsoft Dynamics GP after installing AvaTax Update for Microsoft Dynamics GP.
- If the "This login failed. Attempt to log in again" message displays, click OK. If you need further support, you can find resources in:
- AvaTax Configuration dialog box > About Avalara > Technical Support
- Setup Assistant
- In the Welcome to Microsoft Dynamics GP dialog box, fill in all the fields, and then click OK.
- In the Company Login dialog box, select your company, enter the login information you used in the previous step, and then click OK. The Avalara Setup Assistant opens.
- To configure AvaTax Update for the currently selected company, click OK, and then continue to the next section.
Configure AvaTax Update with the Setup Assistant
After choosing which company you want to configure, the Setup Assistant opens.
To configure AvaTax Update with the Setup Assistant:
- In the AvaTax Setup Assistant, next to Enter your Account Credentials and Company Code, click >, fill in the following, and then click OK:
- 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. Web Service URL Select Development if you have an AvaTax development account or Production if you have an AvaTax production account. Test Connection
Click to verify the information you've entered, and then:
- If "Configuration validated successfully. Your license is good until Month Day, Year" displays, click OK.
- If an error message displays, reenter your credentials, and then click Test Connection.
Company ID Every accounting software that works with AvaTax Update uses a company code to identify itself to AvaTax Update. Select the company code that you created in AvaTax Update from the list.
- In the Avalara Setup Assistant, next to Map General Ledger Account(s) to AvaTax Tax Schedule(s), click >, complete the following, and then click OK:
- Next to Tax Schedule ID, click the search icon.
- To select AvaTax Update as the default tax calculation tool, in the Tax Schedules dialog box, select one of the following values under Tax Schedule ID, and then click Select:
- If you want sales tax for all taxable states to be in one general ledger (GL) account, select AVATAX.
- If you want to select a different GL account for each state, select AVATAX-M.
- Click Map Tax Schedule, and then:
- If you selected AVATAX, in the Tax Detail Maintenance dialog box, from the Account list, select a GL account, and then click OK.
- If you selected AVATAX-M, take the following actions:
Dialog box Actions AvaTax Update GL Account TaxDetail Mapping Next to Country Code, click the search icon. AVA Country Code Lookup Select a country, and then click Select. AvaTax Update GL Account TaxDetail Mapping
- Click Redisplay. The states defined for the selected country display in the table.
- Assign a GL account for each state.
Click Set Tax Schedule ID Utility, fill in the following, and then click Update:
Field Action Tax Schedule ID
- If you want sales tax for all taxable states to be in one general ledger (GL) account, select AVATAX.
- If you want to select a different GL account for each state, select AVATAX-M
Country Select US. Update all child records associated with master records If you want to apply changes to the tax schedule for master records to their child records, select this option.
- From ID
- To ID
Select a range of IDs. Depending on the selection you made for Content Type in the AvaTax Tax Schedule Update dialog box, these are either customer IDs or vendor IDs.
- In the Avalara Setup Assistant dialog box, next to Enable Address Validation for USA and Canada, click >, and then do the following:
- Select Enable Address Validation.
- Under Country Names, select a country in which you want to validate addresses, click --> to move it to Validate When Country Equals, and then click OK.
- In the Avalara Setup Assistant dialog box, next to Test Calculating Tax, click >, and then do the following:
- If "Great! You are connected to Avalara AvaTax" displays, continue to the next step.
- If any other message displays, follow steps 1-3 again.
- To make changes to your tax profile in AvaTax Update (configured when you set up AvaTax Update) using the AvaTax tax profile assistant, in the Avalara Setup Assistant dialog box, click Click here to launch the AvaTax Tax Profile Assistant.
Change your configuration and settings
To change AvaTax Update for Microsoft Dynamics GP configuration and settings:
- In Microsoft Dynamics GP, go to Microsoft Dynamics GP > Tools > Setup > System > Avalara AvaTax > Configuration.
- Complete or modify fields in the AvaTax Configuration dialog box using the following information, and then click OK:
- Optional: Security options:
The account credentials you entered with the Setup Assistant automatically populate in this window.
Button Action Edit Settings Click to reset or edit any of the fields in the section. Test Connection If you make changes to the fields in the section, click to confirm you've entered correct values.
- General options:
Field Action Optional: Display all warning messages If not selected, you see only error messages. Optional: Enable Item Tax Class Mapping Select to map item classes to AvaTax Update tax codes. Optional: Item Class Mapping To map an Avalara tax code to an item class, select the taxability field you want to map to. Optional: Tax Code Mapping Enable to map items to Avalara tax codes to account for varying taxability of products and services. Optional: User Defined 1 and 2 Select the type of data you want to send to AvaTax. Optional: Enable Entity/Use Code
Enable to map entity/use codes for your customer addresses to flag them as exempt from sales tax. Select one of the following:
- Entity/Use Code
- Assign Entity/Use Codes
Optional: Entity/Use Code
Click to open the Entity/Use Code dialog box, click the Entity/Use Code ID field, and then select an AvaTax Update entity/use code.
Optional: Assign Entity/Use Codes Click, and then:
- In the AvaTax Update Entity/Use Code Mapping dialog box, next to Customer ID From and Customer ID To, select a range of customer IDs to which to map an entity/use code.
- Click Redisplay.
- Next to the customer for which you want to assign a code, select the Entity Use Code ID column, and then, in the Avalara AvaTax Update Entity Code Lookup dialog box, select an AvaTax Update entity/use code.
Optional: Send Item Account to AvaTax
Select to pass the general ledger account information to AvaTax Update during transactions. The information is for reference purposes only and isn't used to calculate tax.
Default Shipping Code The default shipping code when you enter a shipping charge on a sales document. Optional: Default Miscellaneous Code Select the default miscellaneous code, the custom tax code for a miscellaneous line on an invoice. By default, this field is blank. Optional: Request Timeout Enter the length of time to wait for AvaTax to respond to calculation requests. We recommend that you don't adjust this setting. Optional: Enable Adapter 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. Optional: Extensive Logging Select to automatically log AvaTax activities and save the details in a local log file. Optional: Check/Fix Default Data Click Check to scan for errors in AvaTax Update for Microsoft Dynamics GP.
- Tax Calculation options:
Field Action Optional: Disable Tax Calculation If you choose to disable tax calculation, your accounting software no longer uses AvaTax to calculate tax on transactions. Optional: Always check address before calculating tax Select to force validate many addresses at once.before tax is calculated. We recommend that you don't select this because it may lead to extra charges. Instead, Optional: Resume Tax calculation in case of Address Validation Failure Select to have AvaTax Update calculate tax for a transaction even if it can't validate the address for the transaction. Optional: Enable Tax Calculation on demand Select to perform a tax calculation with a keyboard shortcut you select in the Keyboard Shortcut menu. Optional: Keyboard Shortcut Select a keyboard shortcut that triggers on-demand tax calculations. Optional: AvaTax integration for Receivables Transaction Entry Select to enable the option to calculate tax in the Receivables Transaction Entry dialog box in AvaTax Update for Microsoft Dynamics GP. Optional: Tax Amount Adjustment functionality via Receivables Transaction Select to enable tax adjustment functionality in the Receivables Transaction Entry dialog box in Microsoft Dynamics GP. Optional: WennSoft integration Enabled Select to enable the WennSoft integration for the Receivables Transaction Entry dialog box in Microsoft Dynamics GP. Optional: Enable Item Tax Option Override - Sales Transaction Entry To prevent AvaTax Update from calculating tax for an item, select this and mark the item as non-taxable in Microsoft Dynamics GP. Optional: Use UPC as Item Code Select to send a UPC instead of an item code to AvaTax. Using this feature may trigger additional fees. Talk to your Customer Account Manager (CAM) for more information. Optional: Use Drop Ship Select this option if you want to use the Purchase Address ID (i.e. the vendor address on the purchase order) as the origin address for sales tax calculation. Tax Schedule ID GL Account Mapping Click, and then select the GL account that you want to map to the AVATAX or AVATAX-M tax schedule. Optional: Pass (Used in Tax calculation) Select a country to use its name to trigger AvaTax Update tax calculations. Optional: Set Tax Schedule ID Click to open the AvaTax Update Tax Schedule Utility. Optional: Enable Use Tax Assessment
If enabled, your accounting software uses AvaTax to calculate consumer use tax on vendor consumer use tax transactions.
Optional: Use Tax Payable Liability Account Select the use tax payable liability account for use tax transactions. Optional: GL Account to Debit Select the GL account to use for use tax transactions. Optional: Use Tax Debit GL Account If, from the GL Account to Debit list, you selected Use Tax Debit GL Account, select the use tax debit GL account.
- Address Validation options:
Field Action Optional: Disable Address Validation If you disable address validation, AvaTax uses the customer's ship-to address to calculate the correct sales tax. Sales tax might be calculated incorrectly if this option is disabled. Optional: Return results in uppercase Select to save all address validation results in uppercase format. Automatic or On Demand Validation
Select one of the following:
- Automatically check addresses and previously validated addresses on saving - Select to trigger an address validation when you save a record.
- Only check addresses on demand - Only validate addresses when you press a keyboard shortcut.
Optional: Keyboard Shortcut Select a keyboard shortcut that triggers address validation. Perform Address Validation based on the Country Names selected Select countries for address validation on the left, and then click --> to move them to the field on the right and activate them. Optional: During Batch Processing Validation, continue processing regardless of errors Select to allow batch address validations to continue even if there are errors. Scan, Accept and Report Validated Addresses during Batch Address Validation
- Automatic - Automatically accept address validation results when you're validating multiple addresses.
- Manual - Manually approve address validation results.
Optional: Reset Click to clear the Address Validated flag so verified addresses are not recognized as previously validated.
- Optional: The About Avalara tab contains technical information about your connector/integration and your AvaTax account.
- Optional: Security options: