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Calculate Sales Tax

This article applies to:Avalara AvaTax for Key2Act

Calculate sales tax in AvaTax for Key2Act for every item that your customers order. 

Calculate sales tax for a service invoice

Before you start calculating sales tax in AvaTax for Key2Act, ensure that the category is mapped to tax code. To calculate tax, you need to first create a service call and then a service invoice.

To calculate tax for a service invoice, follow these steps:

  1. In Key2Act, go to Service > Cards and click Service Manager.
  2. On the Service Manager page:
    1. Select the Customer ID
    2. To create a new call, click New Call or History.
    3. On the Service Call page, enter the following details:
      • In the Description field, type the service call details
      • Select the Problem Type
      • Select the Division
      • Select the Sales Person ID
      • Select the Call Type
      • Select the Equipment ID
      • Select the Job Number

      WS Service Call.png

    4. Click Invoice.
    5. In the message "Do you want save changes", click Save.

      WS Service Call- Validation.png

    6. To add Costs for the invoice, click + Post.
    7. On the Added Costs page, enter the following details:
      • Select the Vendor
      • In the Quantity field, type the number of items
      • In the Unit Cost field, type the unit cost of the item.
      • In the Unit Price field, type the unit price of the item.
      • Select the GL Batch ID.
      • Click Save to generate the Total Cost and the Billing Amount.
    8. Close the Added Costs window.

      WS Added Costs.png

    9. On the Service Invoice page, complete the following details:
      • Master Tax Sch: Select AVATAX.
      • Call Status: Select Open.
      • Category: For every category, the Actual Cost should match the cost added in the Added Costs page.
      • Click Unposted Costs, select the Categories and then click Add.

        WS Service Invoice with Data.png

    10. On the Service Invoice page, Tax displays the total tax amount applicable for the category of the items based on their tax codes and the Call Status changes to Complete
    11. In the message "Unposted Costs remain. Do you want to continue?", click Yes
    12. On the Service Invoice page, the Call Status displays Closed.

      WS Service Invoice- Post.png

    13. To create a credit memo for this service invoice, select Credit Memo (from the drop-down displayed at the left bottom of the page).
    14. On the Credit memo page, type the following details:
      • Credit Amount: Type the credit amount for the category you want to calculate tax.
      • Go to Additional and click Calculate Tax.

        WS Credit Memo.png

    15. Close the windows.
  3. In the Admin Console, go to the Transactions tab to view the invoice details.

    WS Service Invoice- Admin Console.png

Calculate sales tax for a job invoice

To calculate tax for a job invoice, create the following:

  1. Job Cost Tax Code 
  2. Job Maintenance 
  3. Job invoice

To create a job cost tax code, follow these steps:

  1. In Key2Act, go to Administration > AvaTax for Wennsoft Setup and click Job Cost Tax Code Setup.
  2. On the Job Cost Tax Code Setup page:
    1. Select the Division and Job Type.
    2. For a Cost Element, select the associated Cost Description and type the Assigned Tax Code. If the Exclude From Tax Calculation option is enabled for this Cost Element, then the Assigned Tax Code is replaced by NT and sent as the tax code for this cost element. 
    3. To select the ship-from location, select Ship from Site and then click Save.

    WS Job Cost Tax Code Assignment.png

To create job maintenance, follow these steps:

  1. In Key2Act, go to Wennsoft Job Costs > Cards and click Job.
  2. On the Job page:
    1. Select the Job Number from the Job Number Lookup page. The associated details for this job number are automatically populated in the Contract Type and Billing Type fields. 

      WS Job Maintenance.png

    2. To associate the job cost tax code with this job, click User Defined.
    3. In the Job User-Defined page:
      • Select the Job Type
      • Click Save.

      WS User Defined Button.png

    4. Click Save.

To calculate tax for a job invoice, follow these steps:

  1. In Key2Act, go to Wennsoft Job Cost > Transactions and click Job Invoice Entry.
  2. On the Job Invoice Entry page:
    1. Select the Job Number. Ensure that this is the same job number selected during Job Maintenance.
    2. Select the Tax Schedule ID as AVATAX.
    3. To add the cost element, click Schedule. In the Standard Invoice or Credit page, enter details and click Save.

      WS Schedule button.png

    4. You can now calculate tax for this job invoice. Go to Additional and click Calculate tax.

      WS Job Invoice Entry.png

Calculate tax for Project Level Billing

To calculate tax for project level billing, follow these steps:

  1. In Key2Act, go to Wennsoft Job Cost > Transactions and click Project Level Billing.
  2. On the Project Invoice Entry page:
    1. The Document Number is created automatically. 
    2. Select the Project Number from the Project Number Lookup page. If this project number has an associated Customer Number, then the customer details are automatically populated. If this project number does not have an associated Customer Number, then select the same from the list.
    3. Select the Tax Schedule ID as AVATAX.
    4. Select the Job Number for a line.
    5. In the Schedule Invoice page:
      • Click on Select All if you want to add all the bill code entries for this Bill Code Number to this invoice. If you want to select entries, select Bill Code Number and then select the required Bill Cost Code Number and click Select

        WS Job Transaction Entry.png

      • For the message "Do you want to assign all bill codes to this invoice", click Yes

        WS schedule invoice.png

      • Click Save. Tax is now calculated for this job invoice. 

        WS New Job Transaction Entry.png

    6. If a new line amount is added directly, or if existing line details are changed directly, go to Additional and click Calculate tax to calculate tax for this job invoice.

Calculate sales tax for a rental invoice

Before you start calculating sales tax in AvaTax for Key2Act, ensure that your inventory categories are mapped to tax code. To calculate tax, first you need to create a rental agreement and then a rental invoice.

To calculate tax for a rental invoice, follow these steps:

  1. In Key2Act, go to Wennsoft Equipment > Transactions and click Rental Agreement Entry.

  2. In the Rental Agreement Entry window:

    1. Select the Agreement Type ID.
    2. Select the Customer ID.
    3. Type all the required information and then click Details.
    4. In the Rental Agreement Details Entry window, select the Tax Schedule ID as AVATAX and click OK.

    5. To add a new line type to this agreement, click Line Entry or Misc. Entry based on the type of item you want to add. Type all the required details and then click Save. Close this window.

    6. Click Invoice.
    7. In the Rental Agreement Invoicing window, type the Rental Batch ID and click Invoice.

    8. On the Rental Invoice Entry page, the Tax field displays the total tax amount applicable for the rental agreement entry of the items based on their tax codes. 

    9. Close the windows.
  3. To view the invoice details, in the Admin Console, go to the Transactions tab.