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Avalara Help Center

Calculate Sales Tax

As long as you enable tax calculation and select AvaTax as the tax calculation method in your accounting software, AvaTax automatically calculates a sales or use tax rate on a variety of transaction types according to the taxability rules of those products (exempt customers aren't charged sales tax):

  • Estimates/quotes
  • Orders/invoices/cash sales
  • Return authorizations/credit memos/cash refunds

Create one of these transaction types in your accounting software. AvaTax uses the customer's ship-to address to calculate the correct sales tax.

If you're applying discounts, remember:

  • A header-level discount is applied to all taxable items in the transaction
  • A line-level discount is applied to the item above the discount row
  • If both a header-level and a line-level discount are applied, their cumulative discount is applied to the line item

Calculate sales tax

  1. Click AvaTax.
  2. Click Area Page.
  3. Click Sales Order.
  4. Click Sales Tax or the Totals button to access the Sales Order window.

    MAX2009 - Calculate Sales tax 1.png
  5. Click Setup and select Sales Tax to calculate sales tax.

    MAX2009 - Calculate Sales tax 2.png

AvaTax generates a sales tax calculation, and presents the results. Sales tax is also calculated when you save forms and release the order during the Microsoft Dynamics AX 2009 posting process. The sales tax calculation process remains the same for other sales-related transactions supported by AvaTax.

MAX2009 - Calculate Sales tax 3.png

Calculate sales tax on sales orders

You can select documents and re-process them for tax calculation while uploading a batch of sales orders. To calculate tax on a batch of sales orders, follow these steps:

  1. Click the Batch Tax Calculation window, and select the applicable transaction type:
    • To search via document number, use the Range field’s lookup button.
    • To search via entry dates, use the Start and End fields to search for the desired document.
  2. Click the Get Tax button. The recalculated documents display in the grid.