Manage item taxability by mapping your inventory categories to AvaTax Systemin AvaTax for Key2Act. By associating your items with tax codes, you can manage item taxability by product or product category, and allow for jurisdictional subtlety in taxability. Avalara provides predefined system tax codes, which already have a taxability profile in place for all US states. Alternatively, create tax codes in Key2Act or create your own custom tax codes and in the Admin Console. Keep in mind that Avalara automatically updates system tax codes when taxability rules change in various jurisdictions, but custom tax codes and rules are user-maintained; they're not automatically updated when tax laws change.
Map category to tax codes
Before you map your category to a tax code in AvaTax for Key2Act, ensure that the Enable Tax Code Mapping is enabled in the AvaTax Settings page. 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. To learn more about tax codes and how to use them, read what is a tax code?
- In Key2Act, go to Administration > Setup > AvaTax for Key2Act Setup and click Service Management Tax code Setup.
- On the Service Management Tax Code Assignment page, Division and Call Type or User Defined Field selection reflects the choice made in Wennsoft Avatax Configuration > Tax Calculation Options. If User Defined field is selected, then add the following details:
- Select the Division and the Call Type.
- Type a unique user-defined Assigned Tax Code for the selected Cost Description.
- Click Save.
Your categories are now mapped to the tax code. You can now start calculating sales tax.