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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

Depending on the Accounts Receivable or Project form you choose, you can see the tax represented in exactly the same way as when using the internal tax engine.

  • To access Sales Order, Sales Quotation, Free Text Invoice, or Project Quotation forms, click Inquiries  > Totals.
  • To access Sales Order, Sales Quotation, Free Text Invoice, or Project Quotation forms, click Setup > Sales Tax.
  • To access Project Invoice Proposal and Project Invoice forms, click Sales Tax

Additionally, sales tax is calculated after saving the forms and releasing the order, during the Microsoft Dynamics AX posting process.

To send Currency Code and Tax Registration Number in the transaction details:

  • Go to Customers > All Customers and select a customer. In the Customer Account window:
  • For the Currency Code:
    • Go to the Sales demographics tab and set the Currency. The corresponding Currency Code is sent in all the transactions for this customer.  

  • For the Tax Registration Number:
    • Go to the Addresses tab and click Add to add a new address or click Edit to edit the address. 

    • In the Address window, go to Tax registration tab and click Add to add the registration details. 

 

To calculate tax on a transaction such as a sales order, follow these steps:

  1. Go to Accounts Receivable > Common > Sales Orders > All Sales Orders.
  2. On the All Sales Orders page, go to Sales Order > New and then click the Sales Order button. 
  3. On the Create Sales Order page, select a Customer Account and click OK.

    DAX_Create_SO.png

  4. On the Sales Order page, select an Item Number.

    DAX_Add_Line.png

  5. To add a discount for an item:
    1. Select the Item.
    2. In the bottom-half of the window, in the Line details section, click the Price and discount tab.
    3. Add the Discount amount or the Discount Percent.

    DAX_Sales Tax_Discount.png

  6. To calculate sales tax at the line-level, select the line and then go to Financials > Tax and click Sales Tax.
  7. To calculate sales tax at the header-level, go to Sell > Tax and click the Sales Tax.

    DAX_SalesTaxGroup.png

  8. In the Sales Tax window, a table displays the sales tax details. Close the Sales Tax window.
  9. In the Sales Order window, go to the Invoice tab > General > Invoice button to create an invoice for the sales order. 

    DAX_InvoiceTab.png

  10. Click OK to post the invoice to AvaTax.

    DAX_InvoiceForm.png

Calculate sales tax for many transactions

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

  1. In the Utilities menu, click Batch Tax Calculation.
  2. In the Parameters section, click one of the following options:
    • Quotation
    • Sales Order
    • Return Order
    • Free Text Invoice
  3. Click Select.

    MAX - 2012 - calculate batch tax 1.png
  4. In the Criteria field, select the Document Type or the range of documents.
  5. Click OK.

    MAX - 2012 - calculate batch tax 2.png

Calculate sales tax on a line-level ship-to address

  1. Follow the usual steps to create a new transaction such as a sales order:
    1. In the Accounts Receivable module, at the upper left, click Sales Order.
      DAX_LineLevelShipTo1.png
    2. In the Create sales order dialog box, next to Customer account, select a customer and then click OK.
      DAX_LineLevelShipTo2.png
  2. In the Sales Order pane, on the toolbar in the Show group, click Header view.
    DAX_LineLevelShipTo3.png
  3. In the Header view pane, under Setup, next to Sales tax group, select AVATAX, and then click Close.
    DAX_LineLevelShipTo4.png
  4. In the Sales Order pane, on the toolbar in the Show group, click Line view.
    DAX_LineLevelShipTo5.png
  5. Under Sales order lines, click Add line, and under Item number, select an Item.
    DAX_LineLevelShipTo6.png
  6. Under Site, select the Ship-from address.
    DAX_LineLevelShipTo7.png
  7. Fill in or select the other details for the line such as Warehouse and Unit Price, and then at the lower left, click Line details.
  8. In the Line details pane, click the Address tab, and next to Delivery address, select a Ship-to Address.
    DAX_LineLevelShipTo9.png
  9. Click the Delivery tab, and next to Mode of delivery, select a ship-to delivery mode such as Customer pickup. AvaTax for Microsoft Dynamics AX 2012 will make the delivery address (the ship-to address) the ship-from address.
    DAX_LineLevelShipTo10.png
  10. Click the Setup tab, and next to Sales tax group, select AVATAX-POD.
    DAX_LineLevelShipTo11.png
  11. On the Microsoft Dynamics AX toolbar, click Totals.
    DAX_LineLevelShipTo12.png
    In the View sales order totals dialog box, next to Sales tax, you'll see a sales tax total based on the ship-to address that you selected in step 8.
    DAX_LineLevelShipTo13.png

Calculate sales tax using tax override

The tax override feature lets you manually alter the tax amount on a specific transaction by either changing the transaction date or the transaction tax amount. This feature allows you to change the tax amount to something other than the value that was previously calculated. To use the tax override feature, ensure that the Enable credit note / return order tax override option is enabled in configuration.  

Note:
The tax override feature is available only for credit notes and return orders

To override tax calculation, follow these steps:

  1. Go to Accounts receivable > Common > Sales Orders > All sales order.
  2. Select the Return Order for which you want to override tax calculation.

    AllSalesOrder.png

  3. Go to Sell > Calculate > Tax override
  4. In the Tax override section in the Tax override window, select either of the following and then click Tax override.
    • Date: To override tax using date option, type the Date.
    • Amount: To override tax using the amount option, type the Amount.

    Tax OverrideAmount.png

  5. Click Close.
  6. You can now post the sales order.

Calculate sales tax for latitude and longitude

If your customer has a location, such as an oil-rig, drilling platform or radio antenna, without a street address, you can still calculate sales tax for that location with latitude and longitude coordinates. To calculate sales tax using latitude and longitude, follow these steps:

  1. Go to Account Receivable > Common > Customer > All Customers.

    DAX_All Customers.png

  2. In the All Customer window, select the customer.
  3. In the Customer window, under the Address tab, click Add.

    DAX_Add_Address.png

  4. Type the Name or description for the location.

    DAX_Address_Name.png

  5. On the General tab, add the Latitude and Longitude values for the location and click Ok.

    DAX_EnterLatLong.png

  6. Close the Customer form.
  7. Go to Accounts Receivable > Common > Sales Orders > All Sales Orders.

    DAX_Sales_Order.png

  8. In the All Sales Orders window, go to Sales Order > New and then click the Sales Order button.
  9. In the Create Sales Order window, select the Customer account that has the latitude and longitude details and click OK.

    DAX_Create_SO.png

  10. In the Sales Order window, select the Item Number.

    DAX_Add_Line.png

  11. Go to Sell > Tax and click the Sales Tax button.

    DAX_SalesTaxGroup.png

  12. In the Sales Tax window, the table displays the sales tax details. Close the Sales Tax window.
  13. In the Sales Order window, on the Invoice tab, under the General section, click the Invoice button to create an invoice for the sales order.

    DAX_InvoiceTab.png

  14. Click OK to post the invoice to the Admin Console.

    DAX_InvoiceForm.png

Calculate sales tax for a Free Text Invoice

To calculate tax on a transaction for a free text invoice in Microsoft Dynamics AX 2012, follow these steps:

  1. Go to Accounts Receivable > Common > Free text invoices > All free text invoices.

    DAX_All Free Free Text Invoice.png

  2. In the All free text invoices window, go to Invoice > New and then click the Free text invoice button.
    DAX_FreeTextInvoiceNew.png
  3. Select the Customer Account and add invoice line details such as Description, Main account, Sales tax group, Item sales tax group, Quantity, and Unit Price. DAX_FreeTextInvoice.png
  4. Click the Sales Tax button.

    DAX_FreeTextSalesTaxGroup.png

  5. Click the Post button to post the invoice to the Admin Console.

Calculate sales tax for a Sales Quotation

To calculate tax on a sales quotation in Microsoft Dynamics AX, follow these steps:

  1. Go to Sales and marketing > Common > Sales quotations > All quotations.
  2. In the All quotations window, go to Quotation > New and click the Sales quotation button.

    DAX_SalesQuotationNew.png

  3. Select the Account type as Customer and select the Customer Account and click OK.

    DAX_SalesQuotation.png

  4. Click Add Line to add an item to the sales quotation.

    DAX_SQ_Line.png

  5. Click on Quotation > Tax > Sales Tax button.

    DAX_SQ_SalesTaxButton.png 

Calculate sales tax for a Return Order

To calculate tax on a transaction for a Return Order in Microsoft Dynamics AX 2012, follow these steps:

  1. Go to Sales and marketing > Common > Return Order > All return order.
  2. In the All return order window, go to Return Order > New and then click the Return Order button.

    DAX_Create_New_return_Order.png

  3. Select a Customer Account and click Ok.

    DAX_Create_Return_Order.png

  4. Click Add Line to add an item to the return order.

    DAX_ReturnOrder_Line.png

  5. Save the return order and click Close.
  6. Go to Inventory management> Periodic> Arrival Overview.
  7. Select the Setup name as Return Order and select the RMA number from the drop-down.

    DAX_Arrival_Overview.png

  8. Click Select All.
  9. Click Start Overview.
  10. Click Select All.
  11. Click Journal ->Show arrival from lines.

    DAX_Show_Arrival_for_Lines.png

  12. In the Location journal window, click the Default values tab.
  13. Select the RMA number and the Disposition code.

    DAX_Location_journal.png

  14. Click the Lines menu.

    DAX_Location_Line.png

  15. In the Journal lines window, click the General tab.
  16. Select the Disposition code.

    DAX_Journal_Lines.png

  17. Click Validate.

    DAX_Journal Lines validate.png

  18. Click OK.
  19. Click Post and then close all the windows.
  20. Go to Accounts Receivable > Common > Sales Orders > All Sales Orders.
  21. Scroll down to the end of the order list and select the order that you created. The Order type for this order is Returned order.

    DAX_SalesOrderList.png

  22. Open the order that you have selected and save it. 
  23. Go to Sell > Tax and click the Sales Tax button.

    DAX_SalesTaxGroupReturn.png

  24. In the Sales Order window, go to the Invoice tab > General > Invoice button to create an invoice for the sales order.

    DAX_InvoiceTab.png

  25. Click OK to post the invoice to Admin Console.

    DAX_InvoiceForm.png

Calculate sales tax for a Project Invoice

To calculate tax on a transaction for a Project Invoice in Microsoft Dynamics AX, follow these steps:

  1. Go to Project Management and Accounting > Projects > All Projects.
  2. Open an existing project
  3. In the Projects window, go to the Manage tab and then click Item Task > Sales Order.

    DAX_Item_task_Sales_order.png

  4. In the Create Sales Order window, select the Customer Account and click OK.
  5. In the Sales Order window, select the Item Number, Quantity, and the Unit Price.

    DAX_SO.png

  6. Click Save to save the sales order and then click Close.
  7. In the Projects window, click Manage > Invoice Proposal.

    DAX_Invoice_Proposal.png

  8. In the Create Invoice Proposal window, for the sales order transaction, select the Sales Order Lines and the Sales Order and then click OK.

    DAX_Create Inv_Prop.png

  9. In the Invoice Proposal window, click Sales Tax to calculate the sales tax for this invoice. 

    DAX_Sales_Tax.png

  10. In the Invoice Proposal window, click Post to post the sales order. 

    DAX_Post_Inv_Prop.png