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Install and Configure Avalara AvaTax for NetSuite

This article applies to:Avalara AvaTax for NetSuite

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.

Install AvaTax Update for your accounting software

  1. Log in to NetSuite, and go to Customization > Suitebundler > Search & Install Bundles.
  2. On the Search & Install Bundle menu, in the Keywords field, type AvaTax, and then click Search.
  3. Choose AvaTax Basic or AvaTax OneWorld, depending on which connector you're installing.
  4. On the Bundle Details age, click Install. The Preview Bundle Install page shows items to be added by the AvaTax Update bundle.
  5. In the Preference dialog box, find potential conflicts with elements or add-ons, and then select appropriate actions from the drop-down menus.
  6. Click Install Bundle
  7. To see the progress of the installation, go to Customization > Suitebundler > Search & Install Bundles > List.

Create a tax code in NetSuite

AvaTax Update calculates sales tax in the United States and Canada. These steps are for the US; the steps are slightly different for Canada.

  1. To create a tax code in NetSuite, go to Setup > Accounting > Tax Codes > New, and then select United States. The Tax Code page opens.
  2. Fill in the following, and then click Save:
    Field Action
    Tax Name Type AVATAX.
    Display Name/Code Type Sales Tax.
    Rates Type 0.00.
    Tax Agency

    Choose Avalara. If Avalara isn't on the list:

    1. Click +.
    2. From the Category list, select Tax Agency.
    3. In the Company Name field, type Avalara, and then click Save.
    Tax Account Choose the tax control account where payable sales tax should accrue. If there's no tax control account, create a tax control account in NetSuite, and then select it.

Create a tax code in NetSuite OneWorld

AvaTax Update calculates sales tax in the United States and Canada. These steps are for the US; the steps are slightly different for Canada.

  1. To create a tax code in NetSuite, go to Setup > Accounting > Tax Codes > New, and then select the country you want the new tax code to apply to. The Tax Code page opens.
  2. Fill in the following, and then click Save:
    Field Action
    Tax Name Type AVATAX.
    Display Name/Code Type Sales Tax.
    Rates Type 0.00.
    Subsidiaries Choose one subsidiary per tax code. Create more tax codes if you want to calculate tax for multiple subsidiaries.
    Tax Agency

    Choose Avalara. If Avalara isn't on the list:

    1. Click +.
    2. From the Category list, select Tax Agency.
    3. In the Company Name field, type Avalara, and then click Save.
    Tax Account Choose the tax control account where payable sales tax should accrue. If there's no tax control account, create a tax control account in NetSuite, and then select it.

Configure AvaTax Update for your accounting software

To configure your company settings:

  1. Go to Avalara > Setup > Configure Avalara.
  2. On the Setup Assistant page, fill in the following, and then click Validate:
    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.
    • Username 
    • 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.
    Service URL Select Development if you have an AvaTax Update development account or Production if you have an AvaTax Update production account.
  3. Select the company code:
    • If you're using NetSuite, from the AvaTax Company Code/Name list, select the company code you created in AvaTax Update.
    • If you're using NetSuite OneWorld, map each subsidiary to a different company in AvaTax Update by choosing the appropriate company codes from the Default Company Code list.
  4. Complete or modify fields on the Avalara Configuration page, using the following information, and then click Save:
    • The General tab:
      Section Field and description
      Item Specific
      • Enable Tax Code Mapping: Enable to map items to Avalara tax codes to account for varying taxability of products and services.In the list, if you select the blank option, AvaTax Update for NetSuite doesn't automatically change the taxability of the customer transactions. If this option isn't visible, follow the steps mentioned below.
      • Override AvaTax TaxCode: Select to override your assigned Avalara tax code and send NT for non-taxable items. If this option is disabled, the assigned Avalara tax code is sent. In the list, if you select the blank option, AvaTax Update for NetSuite doesn't automatically change the tax code of the customer transactions if it already exists.
      • Optional: User Defined 1 and 2: Select the type of data you want to send to AvaTax.
      • Send Item Account to Avalara: Select to send general ledger account information for an item to AvaTax Update.
      Customer/Vendor Specific
      • Customer Code: Selected value is sent to AvaTax Update and appears as the customer code on transactions. Most customers select Customer Internal ID.
      • Vendor Code: Selected value is sent to AvaTax Update and appears as the vendor code on consumer use transactions. Most customers select Vendor Internal ID.
      • Default Customers to Taxable: Select the default option that makes customers in NetSuite taxable when you add or save their customer record.
      • Default Tax Code To: Select the customers you'd like to consider taxable when you add or save customer records.
      • Optional: Enable Entity/Use Code: Enable to map entity/use codes for your customer addresses to flag them as exempt from sales tax.
      Miscellaneous Settings
      • Default Shipping Code: The default shipping code when you enter a shipping charge on a sales document. Before you select this option, ensure that the shipping codes are set up by going to Avalara > Setup > Shipping Codes. Ignore this field if your company doesn't use NetSuite’s shipping functionality.
      • Show Warnings/Errors: Determines what displays on error logs.
      • Optional: Billable Time Name: If you select Billable Time, AvaTax Update records billable time for items that you select instead of the item name mapped to a tax code.
      • Optional: Extensive Logging: Select to automatically log AvaTax activities and save the details in a local log file.
    • The Tax Calculation tab:
      Field and description
      • Optional: Disable Tax Calculation: If you choose to disable tax calculation, your accounting software no longer uses AvaTax Update to calculate tax on transactions.
      • Optional: Disable Tax Calculation for Quotes: If you choose to disable tax calculation for quotes, NetSuite no longer uses AvaTax Update to calculate tax on quotes.
      • Optional: Disable Tax Calculation for Sales Order: If you choose to disable tax calculation for sales orders, NetSuite no longer uses AvaTax Update to calculate tax on sales orders.
      • Optional: Disable Tax Calculation at line level: This setting affects only the frequency of tax calculations. If the Multiple Shipping Routes option is selected in NetSuite, AvaTax Update for NetSuite can source lines on transactions to different addresses, regardless of this setting.
      • Optional: 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.
      • Optional: Calculate Tax on Demand: Select to display a Calculate Tax button in sales documents in Edit view. When you click the Calculate Tax button, AvaTax Update performs an instant sales tax calculation.
      • Optional: Tax Included Capability: Select to add a checkbox to include sales tax in the Total Price field on sales documents. Sales tax in the Total Price field  reverses the tax amount from the line total and updates the line amount to reflect this. The total price on the invoice doesn't change even after tax is added.
      • Optional: Use Posting Period as Transaction Date during Tax Calls: Select to send the posting date as the transaction date instead of the header invoice date. The posting period is the first day of the selected month.
      • Optional: Disable Location Code:
        • If this option is selected, the location code for a transaction is sent based on the following conditions:
          • If the location code is added only at the header level, the location name is sent as the location code for the transaction.
          • If the location code is added only at the line level, the location name of the 1st line is sent as the location code for the transaction.
          • If the location code is added at both the header level and the line level, the location name of the 1st line is sent as the location code for the transaction.
        • In NetSuite, if this is disabled, the default address on this tab is sent as the origin address for transactions.
        • In NetSuite OneWorld, if this is disabled, the subsidiary address on this tab is sent as the the origin address for transactions.
      • Optional: Enable UPC Code as Item Code: Select to send a UPC instead of an item code to AvaTax Update. Using this feature may trigger additional fees. Talk to your Customer Account Manager (CAM) for more information.
      • Optional: Use Invoice Address for Tax Calculation on Returns: Select to use invoice addresses for tax calculation on returns.
      • Optional: Enable Discount Mechanism: Select to map discounts to an Avalara tax code. This is useful if you need to use non-taxable discounts, which don't affect the taxable amount of a line.
      • Discount Mapping: Select whether you want to discount the gross or net amount when you use the Enable Discount mechanism.
      • Discount Tax Code: Select to be able to select a tax code for discounts--in most cases, NT for non-taxable.
      • Tax Rate: Select Show Base Rate to control whether the tax rate displayed factors in exemptions and partial taxability.
      • Optional: Round-Off Tax Percentage (Decimal Places): Select to control the number of decimal places that display in a calculated tax rate. By default, 2 places display.
      • Default Tax Code: In NetSuite OneWorld, select the company-specific tax code for each subsidiary.
      • Default Tax Code Rate: In NetSuite OneWorld, select the company-specific tax code rate for each subsidiary.
      • Addressee: Type the addressee address details. The Address field shows a consolidated view of the addressee address.
      • Validate Address: Click to validate the addressee address.
      • Abort Save Operation on Tax Calculation Errors: Select to stop tax calculations that fail from saving the document for the following operations:
        • Bulk Billing
        • User Interfaces
        • Webservices
        • CSV Imports
        • Scheduled Scripts
        • Suitelets
        • Workflow action scripts
    • The Consumer Use Tax / Input VAT tab:
      Using this feature may cause you to incur additional fees. Talk to your Customer Account Manager (CAM) for more information. Consumer use tax doesn't apply to Canadian purchase transactions.
      Section Field and description
      Consumer Use Tax Assessment Settings
      Accrue Consumer Use Tax when a Vendor Bill is approved Optional: Select to enable accrual of consumer use tax when a vendor bill is approved, and then post to AvaTax Update.
      Auto Self Assess on Imported Vendor Bills Optional: Select to enable self-assessment of consumer use tax on vendor bills imported from the webservices to automatically compare the tax calculated by your vendor with the tax calculated by AvaTax Update.
      Item for Tax Paid to Vendor Optional: Select the item that represents the vendor-paid sales tax on vendor bills. This item amount is treated as the vendor-paid sales tax and used to compare with the tax calculated by AvaTax Update.
      Tax Accrual Date

      Select the type of date that represents the tax date on vendor bills. This date is treated as the tax accrual date and used to calculate tax using AvaTax Update.  

      • Transaction Date (default option)
      • Due Date: If this option is selected, but the due date is missing in the transaction, the transaction date is used as the due date. 
      • Posting Date: If this option is selected, the first day of the posting month is used as the posting date.
      Input VAT Verification Settings

      Optional: Enable Input VAT Verification on Vendor Bill: Enable to verify the VAT amount calculated by a vendor.

    • The Address Validation tab:
      Field and description
      • Optional: 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.
      • Optional: Enable address validation on transaction(s): Select to create buttons for validating bill-to and ship-to addresses on transactions.
      • Optional: Track previously validated addresses: If enabled, AvaTax Update informs you when an address has previously been validated.
      • Optional: Result in upper case: Select to save all address validation results in uppercase format.
      • Batch processing:
        • Automatic - Automatically accept address validation results when you process batches of transactions.
        • Manual - Manually approve the address validation results.
    • The About Avalara tab contains technical information about your connector/integration and your AvaTax Update account.

Configure to map items to tax codes

Before you map an item to a tax code, ensure the AvaTax TaxCode option displays. If this option isn't visible:

  1. In NetSuite, go to Customization > Forms > Entry Forms.
  2. Select the appropriate entry form from the list, and then click Edit next to the form name. The name could be different based on the form you're using or any customizations.
  3. On the Fields tab, and select the Custom sub-tab.
  4. Find AvaTax Tax Code, and then select the checkbox in the Show column.
  5. Save the record.

NetSuite scripts installed with the AvaTax Update bundle

Customize these scripts based on your NetSuite implementation. Visit the NetSuite documentation to learn more about bundles and script types.

 UserEvent scripts

Script name Script functionality NetSuite records used on
AVA_TransactionTab_1 Tax calculation Cash Refund, Cash Sale, Credit Memo, Invoice
AVA_TransactionTab_2 Tax calculation Sales Order, Quote, Return Authorization
AVA_PurchaseTransactionTab Use tax and VAT functionality Vendor Bill, Vendor Credit
AVA_Customer Maps entity use code and exemption certificate number Customer, Lead, Prospect
AVA_Customer_Address Address validation Customer, Lead, Prospect, Vendor
AVA_Cutomer_Certs CertCapture functionality Customer, Lead, Prospect, Partner
AVA_ExpenseCategories Maps Avalara tax codes to Expense Category Expense Category
AVA_InventoryTab_1 Maps Avalara tax codes and a user-defined reference to items Assembly/Bill of Materials, Download Item, Inventory Part, Kit Item, Non-Inventory Part, Other Charge Item, Service
AVA_InventoryTab_2 Maps Avalara tax codes and a user-defined reference to items Gift Certificate Item, Item Group, Lot Numbered Assembly/Bill of Materials, Lot Numbered Inventory Item, Serialized Assembly/Bill of Materials, Serialized Inventory Item
AVA_Location Hides custom field Location
AVA_Subsidiary Stores subsidiary information in custom records used in AvaTax Update configuration Subsidiary

Client scripts

Script name Script functionality NetSuite records used on
AVA_Transaction_Client Tax calculation Cash Refund, Cash Sale, Credit Memo, Invoice, Sales Order, Quote, Return Authorization
AVA_Purchase_Client Use tax and VAT functionality Vendor Bill, Vendor Credit
AVA_AddressValidationResult_Client Batch address validation NA
AVA_AddressValidation_Client Batch address validation NA
AVA_Config_Client AvaTax Update configuration NA
AVA_DeleteBatch_Client Batch reconcile utility NA
AVA_EntityMap_Client Entity use code creation NA
AVA_Entity_Client Client side address validation and CertCapture functionality Customer, Lead, Prospect, Vendor, Partner
AVA_GeneralScript_Client Client side validation NA
AVA_GetCertificates_Client Client side validation NA
AVA_Inventory_Client Stores Avalara tax codes in custom fields Inventory Part, Lot Numbered Inventory Item, Non-Inventory Part, Other Charge Item, Serialized Inventory Item, Service
AVA_RecalculateUtility_Client Batch reconcile utility NA
AVA_ReconcileList Batch reconcile utility NA
AVA_ReconcileResult_Client Batch reconcile utility NA
AVA_Shipping_Client Shipping code creation NA
AVA_TransactionList_Client Shows committed and voided transaction list NA

Scheduled scripts

Script name Script functionality NetSuite records used
AVA_AddressValidate_Sched Batch address validation Subsidiary, Customer, Location
AVA_DeleteAddressValidationBatches_Sched Deletes batch address validation NA
AVA_DeleteLogsOfDeletedTransactions Delete logs from custom records NA
AVA_DeleteReconcileBatches_Sched Delete Reconcile batches NA
AVA_RecalculateTaxes_Sched Tax calculation Cash Refund, Cash Sale, Credit Memo, Invoice,Sales Order, Quote, Return Authorization
AVA_ReconcileTax_Scheduled Batch reconcile utility Cash Refund, Cash Sale, Credit Memo, Invoice
AVA_SubsidiaryCreation_Sched Stores subsidiary information in custom records used in AvaTax Update configuration. Used in NetSuite OneWorld, not in NetSuite. Subsidiary
AVA_UpdateValidatedAddress_Sched Updates validated addresses Subsidiary, Customer, Location
AVA_TransactionLogTransform_Sched Deletes user notes Note

Suitelets

All the Suitelets installed through the AvaTax Update bundle are used for creating customized Avalara pages (in the Avalara menu) in NetSuite.  

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