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Avalara Help Center

Manage Taxability of Products and Services

This article applies to:Avalara AvaTax for Concur Invoice

Apply tax codes to manage item taxability. Assigning product and product categories to items gives you important jurisdictional subtlety in taxability. Avalara has predefined system tax codes with a taxability profile in place for all US states. Or, create your own custom tax codes and tax rulesHoverTT.png in the Admin Console. Keep in mind that Avalara updates system tax codes when taxability rules change, but custom tax codes and rules are maintained by you; they're not updated when tax laws change. Also, make sure you enable nexus in the jurisdictions where you're required to register and collect tax so AvaTax calculates the full tax amount.

Map items to tax codes

  • A tax code is a unique code for similar products, services, or charges that tells AvaTax what kind of sales tax, if any, to charge for them. 
  • It's a best practice to map items to tax codes in your accounting software. Find your integration to learn how to map tax codes in your accounting system.
  • If you can't pass a tax code from the item management screen, or if you need a remotely-hosted mapping system to accommodate multiple integrations, map the items to tax codes in the Admin Console.
  • If you map in your accounting software and the Admin Console, the Admin Console mapping supersedes any mapping in your accounting software.
How Do I Map Tax Codes - Final.png
  1. Log in to Concur Invoice using the processor account credentials.
  2. Go to Administration > Invoice.
  3. On the Invoice Processing Admin page, click Tax Administration.
  4. On the Tax Administration page, go to the Tax Validation tab. The page lists the expense types and their UNSPSC Commodity Codes. To add a tax code for an expense type, search for the AvaTax System Tax Code and type it in UNSPSC Commodity Codes. Click Save.

    Note:
    For an item, the commodity code is displayed as the tax code. If an item doesn't have a commodity code, the tax code is displayed as P0000000.

  5. Tax calculation on invoice:
    • Tax calculation on an invoice with an item without a tax code:

    • Tax calculation on an invoice with an item with a tax code:

View transactions in the Admin Console

TransactionsHoverTT.png are stored in the Admin Console on the Transactions tab for any company for which you calculate sales tax in AvaTax for Concur Invoice. In the example below, you can see the details of the invoice with an expense type having a tax code. For more information, read reviewing transactions.

  • Tax calculation on an invoice with an item without a tax code:

  • Tax calculation on an invoice with an item with a tax code: