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Install and Configure Avalara AvaTax for Microsoft Dynamics AX 2012

After you activate AvaTax and set up your company profile, install and configure AvaTax for your accounting software. During configuration, customize your setup to fit your unique business needs for things like:

  • Tax calculation settings for various tax types
  • Exemption settings if you have exempt customers
  • Product taxability settings

Alter these settings when your business needs change.

During the install process, you must:

  • Repeat the installation process on every server that has the Microsoft Dynamics AX Application Object Server installed
  • Repeat the installation process on every server that has the Microsoft Dynamics AX batch processing application installed
  • Install on Terminal Service Servers (including Citrix) when the server is in Install Mode

Use the procedures below to download, install, and configure Microsoft Dynamics AX. If you've previously installed the integration, learn how to upgrade to the latest version.

It's recommended to contact Avalara Professional Services before you install and configure AvaTax for your accounting software.

Download

To connect your accounting software to AvaTax, download your integration software. 

  1. In AvaTax, on the Home tab, click Get Started.
  2. In the Download and Install Your Integration Software section, click Download Software
  3. In the Download Your AvaTax Connector Software window, click the arrow next to the name of your software, and then download the latest version of your integration. If the file isn't available for download, clear your browser's cache, and log back into AvaTax.
  4. Save the .zip file somewhere on your computer that's easy to find.
  5. Right-click the .zip file and extract the installation folder or file (.exe or .pdf or .msi). 

Install AvaTax for Microsoft Dynamics AX 2012 R2

Install

  1. Once you’ve downloaded the ZIP file from AvaTax, extract it in your local drive.
  2. Run AvaTax for Microsoft Dynamics AX.exe to install AvaTax for Microsoft Dynamics AX 2012 R2.
  3. On the Welcome to the InstallShield Wizard screen, click Next.
  4. On the Customer Information screen, type your User Name and Organization.  Select whether you want to install this application for all users or for the current user. Click Next to continue.
  5. On the Ready to Install the Program screen, click Install.
  6. Wait for the installation to complete. Click Finish to exit the setup wizard.

Register the adapter

After installation of AvaTax for Microsoft Dynamics AX 2012 R2, if the Avalara.AvaTax.Adapter.dll is not available at path C:\Windows\assembly\gac_msil, follow these steps:

  1. Stop the AOS service.
  2. Copy the new Avalara adapter DLL file, available in the latest release, to the server.
  3. Go to Visual Studio GacUtil tool and type the following command: gacutil /i <path>/Avalara.AvaTax.Adapter.dll. For example, if you copy the Avalara.AvaTax.Adapter.dll to C:\Avalara\ , then the command is gacutil /i c:\Avalara\Avalara.AvaTax.Adapter.dll.SDKNET 2 code.png
  4. Start the AOS Service and start Microsoft Dynamics AX 2012.
  5. Go to AOT and select the Reference node.

    SDKNET 3 aot reference.png

  6. Right-click Avalara.AvaTax.Adapter, and click Delete.
  7. Right-click Reference, and click Add Reference.
  8. Click Avalara.AvaTax.Adapter and click Select. Click OK

    SDKNET 6 aot reference added.png

  9. Go to Project > Shared Avalara and compile the Avalara project.
  10. Go to Project > Shared AvalaraAX and compile the AvalaraAX project.
  11. Go to System administration > Periodic > Compile application.
  12. Generate Full CIL (Compiler Intermediate Language).
  13. Restart the AOS service.

Install the AVA model files

To install the AVA model files in Microsoft Dynamics AX 2012 R2, follow these steps:

  1. Close Microsoft Dynamics AX.
  2. To uninstall any previous model file in the AVA layers, open the Command Prompt and type Uninstall-AXModel -Model “AVA Model”.
  3. To install the new model file in the AVA layers, open the Command Prompt and type Install-AXModel -File "<path of model file>".
  4. Start the compilation process. Once compilation finishes, synchronize the database.
  5. Generate a full Common Intermediate Language.
  6. Restart Microsoft Dynamics AX.

Run the AvaTax Install wizard

  1. On the module menu in Microsoft Dynamics AX 2012, click AvaTax.
    MAX - 2012 -  InstallWizard 1.png
  2. On the AvaTax Installation Wizard window, click Next to start the installation.
  3. On the next screen, type the Account Value, License Key, and URL that you received from Avalara in an email when you signed up for your AvaTax account. Click Verify Credentials
  4. The following screen indicates a successful validation. Click OK.
    MAX - 2012 -  InstallWizard 4.png
  5. On the next screen, select the Sales tax group code from the drop-down menu. We recommend you select AVATAX. Click Next.
  6. On the Do you want to enable AvaTax now? screen, select all the three checkboxes to enable tax calculation and address validationHoverTT.png. Click Next.
  7. Click Finish. A message displays asking you to configure the ledger posting group and sales tax settlement period. Click OK.
  8. Open the ledger posting groups in General Ledger > Setup > Sales tax > Ledger posting groups. Choose the correct Sales Tax Accounts to use with AvaTax. The ledger account that you choose must have a Posting Type of Sales Tax.
    MAX - 2012 -  InstallWizard 11.png
  9. In General Ledger > Setup > General Ledger Parameters > Sales Tax tab, validate that your Sales Tax settings match the screen below.
    MAX - 2012 -  GL - Setup - GL Parameters.png
     
  10. Refresh any workstation that was open while running the Setup wizard to ensure the local cache files are updated with the AvaTax configuration settings.

Install AvaTax for Microsoft Dynamics AX 2012 R3

Install

  1. Once you've downloaded the ZIP file from AvaTax, extract it in your local drive.
  2. Run AvaTax for Microsoft Dynamics AX 2012 R3 Version AX 6.3.164.0.01.00.exe to install AvaTax for Microsoft Dynamics AX 2012 R3.
  3. In the Custom Setup dialog box, choose whether to install AvaTax with or without a Help file, and then click Install.
  4. In the Installation succeeded dialog box, click Finish to exit the setup wizard.

Install the AVA model files

To install the AVA model files in Microsoft Dynamics AX 2012 R3, follow these steps:

  1. Close Microsoft Dynamics AX.
  2. To uninstall any previous model file in the AVA layers, open the Command Prompt and type Uninstall-AXModel -Model “AVA Model”.
  3. To install the new model file in the AVA layers, open the Command Prompt and type Install-AXModel -File "<path of model file>".
  4. Start the compilation process. Once compilation finishes, synchronize the database.
  5. Generate a full Common Intermediate Language.
  6. Restart Microsoft Dynamics AX.

Run the Setup Assistant

In order to complete the configuration of AvaTax for Microsoft Dynamics AX 2012, you need to enter your account credentials and company code, map your tax schedule to AvaTax, setup address validation, and finally, test to ensure that tax is calculating. Follow these steps to complete the configuration:

  1. Go to AvaTax > Area page and click AvaTax Setup Assistant.

    AX2012_Setup_Assistant.png

  2. In the Avalara Setup Assistant window, next to Enter your Avalara account credentials, click the > button.
    AX2012_1_Setup Assistant.png
  3. In the Avalara Account Credentials window, click Edit Setting.  
    1. Type the Account NumberLicense KeyUser name and associated Password, that you received from Avalara in an email when you signed up for your AvaTax account.
    2. Next to Web service URL, select https://development.avalara.net if you have an AvaTax development account or https://avatax.avalara.net if you have an AvaTax production account.
    3. Click Test Connection and then follow one of these steps:
      • If you see a message that says, "Configuration validated successfully" click OK and go to the next step.
      • If you see a message that says, "Connection test failed" reenter your account information, and then again click Test Connection. Do this until you see a message that says "Configuration validated successfully", then click OK and go to the next step.
    4. In the Company Code/Company name grid, select your company code that you created when you activated your AvaTax account. To create a new company, click Create Company.
    5. Click Close.

      AX2012_AvalaraAccountCredentials.png

  4. In the Avalara Setup Assistant window, next to Map General Ledger Accounts(s) to Sales Tax group, click the > button. On the Map Sales Tax Group page: 
    1. Next to Sales tax group, select AVATAX.
    2. Click Tax Group Code Mass Update to update the sales tax group.
    3. Click Close.

      AX2012_3_SalesTax Group.png
  5. In the Avalara Setup Assistant window, next to Enable Address Validation for USA and Canada, click the > button.
    1. In the Enable Address Validation dialog box, click the checkbox next to Disable Address Validation to disable address validation functionality.
    2. In the Country Code table, click the checkboxes next to the countries you want to enable address validation, and then click Close.

      AX2012_4_Address Validation.png
  6. In the Avalara Setup Assistant window, next to Test Calculating Tax, click the > button.
    • If you see a message that says "Great! You are connected to AvaTax," go to the next step.
    • If you see any other message, follow steps 1-3 again.

Assign sales tax settings

For accurate sales tax calculations, assign sales tax accounts to AvaTax and configure your sales tax settings.

  1. Open the ledger posting groups in General Ledger > Setup > Sales tax > Ledger posting groups. Choose the correct Sales Tax Accounts to use with AvaTax. The ledger account that you choose must have a Posting Type of Sales Tax.
    MAX - 2012 -  InstallWizard 11.png
  2. In General Ledger > Setup > General Ledger Parameters > Sales Tax tab, validate that your Sales Tax settings match the screen below.
    MAX - 2012 -  GL - Setup - GL Parameters.png
     
  3. Refresh any workstation that was open while running the Setup wizard to ensure the local cache files are updated with the AvaTax configuration settings.

Configure

The Configuration window opens after you complete the setup wizard, allowing you to edit and configure your settings.

  1. Optional: If you're making changes after installation, to open the Configuration window, go to AvaTax > Area page, and then click Configuration Setting.
  2. To edit fields in the Account Credentials section, click Edit Settings, add or modify the following details, and then click Verify Credentials:
    Field Action
    • Account Number
    • License Key
    Use the account number and license key that you received from Avalara in an email when you signed up for your AvaTax account
    URL Enter https://development.avalara.net if you have an AvaTax development account or https://avatax.avalara.net if you have an AvaTax production account
    • User name
    • Password
    Use the same ones you use to log into your AvaTax account
    Company Code Select your AvaTax company code
  3. Complete or modify fields on the remaining tabs, using the following information, and then click Close to save your changes:
    • The General tab:
      Section Field and description
      General Options
      • Display all warning messages: Select to enable warning messages. Error messages will always display.
      • Tax Mapping Code: Controls how tax codes are assigned to items. Select to enable the tax code mapping utility within the AvaTax menu.
      • User Defined 1: Identifies Microsoft Dynamics AX information to pass to AvaTax in the User Defined 1 field for reporting.
      • User Defined 2: Identifies Microsoft Dynamics AX information to pass to AvaTax in the User Defined 2 field for reporting.
      • Enable Entity Use Code: Select to enable the use of entity/use code to exempt customer records.
      • Send Item account to AvaTax: Select to enable to send the item account details to AvaTax.
      • Use UPC as Item Code: Select to enable sending UPC instead of the item code to maintain item taxability.
      Return Order Address

      Return Order Address: Select the address for return orders.

      Shipping Options Control the assignment of tax codes to additional charge items. Available additional charge items display on the left, and you can assign them to tax codes associated with freight or miscellaneous charge references found on the right.
      Adapter Options
      • Request Timeout (In seconds): Allows you to change the adapter timeout. We don't recommend changing this setting unless advised by Avalara Support.
      • Enable logging: Select to enable transaction logging for AvaTax. Typically used to assist with transaction troubleshooting. We don't recommend changing this setting unless advised by Avalara Support.
      • Extensive logging: Select to generate logs in local (AVALE) and log entry portal. We don't recommend changing this setting unless advised by Avalara Support.
    • The Tax Calculation tab:
      Section Field and description
      General Options
      • Always check address before calculating tax: Select to force an address validation of the sales/billing document prior to tax calculation. Generally only recommended if you enter ship-to address on-the-fly during the Microsoft Dynamics AX sales transaction entry process.
      • Enable credit note / return order tax override date: Generally recommended if you want to override the tax details for a credit note / return order.
      Tax Area Code
      • Sales tax group: Identifies the default sales tax group. Update customer or vendor area sales tax group codes in order to process sales tax calculations using AvaTax for Microsoft Dynamics AX 2012. We recommend selecting the AVATAX sales tax group.
      • Tax Group Code Mass Update: Accesses a utility to perform a mass updates of the sales tax group code on a range of customers.
    • The Address Validation tab:
      Section Field and description
      General Options

      Return Results in Uppercase: Select to have Microsoft Dynamics AX return address validation results in uppercase format.

      Perform Address Validation based on country names selected AvaTax only validates addresses in the United States and Canada.
    • The Consumer Use Tax tab:
      Section Field and description
      Consumer Use Tax
      • Enable use tax assessment on vendor invoice: Select to enable consumer use tax assessment on your vendor invoices.
      • Mark vendor to assess: Click to select and mark vendors for consumer use tax assessment.
      Posting account
      • Use Tax liability account: Select the account to which the accrual amount is to be credited.
      • GL Account to Debit: Select the type of account from which the accrual amount is to be debited.
      • Use Tax Debit GL Account: If you select the Single Account option in GL account to Debit, select the associated account from which the accrual amount is to be debited.
      Taxability
      • Apply Avalara Goods & Service Code mapped on item group when it’s not available on an item: Select to apply Goods and Service 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.
      • Apply Avalara Goods & Service Code mapped on: Select the option appropriate to your business.
        • Item Code: The tax code sent to AvaTax will be Item code. If the Item code is missing, the Item group is sent. If both Item Code and Item group are missing, the Item Code is sent as blank. 
        • Procurement Category: The tax code sent to AvaTax will be Procurement Category. If the Procurement Category is missing, the Item Code is sent. If both Procurement Category and Item Code are missing, the Item Group is sent. 
    • The Project tab:
      Section Field and description
      Project Invoice Address Project Invoice Address: Select the appropriate project address for your invoice