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Calculate Consumer Use Tax

In your accounting software, calculate and verify consumer use tax, assign the use tax to an accrual account, and send the transaction to AvaTax for consumer use tax reporting. AvaTax settles your accounting software's GL accounts with the accrual amount accordingly.

Calculate consumer use tax on transactions in the following ways:

Configure consumer tax

To configure consumer tax, follow these steps:

  1. Go to Avalara and select the Avalara Account Name for which you want to configure the consumer use tax. 

  2. Click Edit to change the settings. 
  3. Select the GL Account as AR GL. This is the account to which the accrued amount is credited.  

Calculate consumer use tax

To calculate consumer use tax, follow these steps:

  1. Go to Accounts Payable and click New.

  2. On the New Account Payable page: 

    1. Select a Vendor.
    2. Type the Payee Reference.
    3. Select the Account Period.
    4. Click Save.
  3. To add an item to the invoice, click New Account Payable Line
    1. On the New Account Payable Line page, type the required details for this item. If the Product is not selected, AccountingSuite automatically assigned the Expense GL Account name.

    2. Click Save.
  4. Click Verify Tax.
  5. The following message is displayed. Click OK.

  6. Change the Pending Status to Approved. Before posting, if the Pending Status is not Approved, then the following error message is displayed.

  7. To accrue the self-assessed consumer use tax, click Post/Commit.

  8. The Pending Status changes from Approved to Posted and the calculated consumer use tax is added as a new line. 

    1. To edit the invoice, click UnPost/UnCommit. The Pending Status changes to In Process. After you edit the invoice, repeat from step 7.