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Install and Configure Avalara AvaTax for Microsoft Dynamics AX 2012

Now that you've activated your AvaTax account and set up your tax profile, it's time to install and configure your integration. At the end of this process, you'll send a test transaction to confirm that AvaTax is calculating tax the way you expect. After running a successful test, you'll be able to start using AvaTax!

There are separate install instructions for Microsoft Dynamics AX 2012 R2 and for Microsoft Dynamics AX 2012 R3. For each installation:

  • 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.
  • Installation on Terminal Service Servers (including Citrix) must be done when the server is in Install Mode.

After following the installation instructions for the correct version, you can then follow the configuration instructions for all versions. If you've previously installed the integration, learn how to upgrade to the latest version.

Download your integration

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

  1. In the Admin Console, 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 the Admin Console.
  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 Microsoft Dynamics AX 2012 R2

Learn how to install AvaTax for Microsoft Dynamics AX 2012 R2.

Install AvaTax for Microsoft Dynamics AX 2012 R2

  1. Once you’ve downloaded the ZIP file from the Admin Console, 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 isn't 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.
  5. Start Microsoft Dynamics AX 2012.
  6. Select the Reference node and delete the old Avalara.AvaTax.Adapter reference:
    1. Go to AOT and select the Reference node.

      SDKNET 3 aot reference.png

    2. On the Avalara.AvaTax.Adapter reference, right-click and click Delete.

      SDKNET 4 aot reference node.png

  7. Add the new Avalara adapter reference:
    1. Right-click Reference and click Add Reference.

      SDKNET 5 aot reference node properties.png

    2. Click Avalara.AvaTax.Adapter and click Select. Click OK.
  8. Click Project > Shared Avalara, and compile it.
  9. Click Project > Shared AvalaraAX, and compile it.
  10. Click System administration > Periodic > Compile application.
  11. Generate Full CIL (Compiler Intermediate Language).
  12. Restart the AOS service.

Install and compile the AVA Model files

  1. Install the AVA Model files in Microsoft Dynamics AX 2012 R2:
    1. Go to Control Panel > System and Security > Administrative Tools > Services. Right-click Microsoft Dynamics AX Object Server, and then select Stop. This will stop the AOS service.
    2. Go to Control Panel > System and Security > Administrative Tools. Right-click Microsoft Dynamics AX 2012 Management Shell, and then select Run as administrator
    3. Uninstall any previous model file in the AVA layers. Type the following command in the Microsoft Dynamics AX 2012 Management Shell
      Uninstall-AXModel -Model “AVA Model”
    4. Install the new model file in the AVA layers. Type the following command in the Microsoft Dynamics AX 2012 Management Shell
      Install-AXModel -File "<path of model file>"
    5. Confirm the installation by typing Y and then click Enter:
      Do you want to continue? Y (Yes) / N (No):
    6. Close Microsoft Dynamics AX 2012 Management Shell
  2. Compile Microsoft Dynamics AX 2012 R2:
    1. Go to Control Panel > System and Security > Administrative Tools > Services. Right-click Microsoft Dynamics AX Object Server, and then select Start. This will start the AOS service. 
    2. Start Microsoft Dynamics AX 2012. Installation of a new model file displays several options. Click Compile and synchronize (Advanced) option to start the compilation process. 
    3. Go to System administration > Periodic, and then click Compile into .NET framework CIL
    4. Close Microsoft Dynamics AX 2012.
    5. Go to Control Panel > System and Security > Administrative Tools > Services and restart the AOS service. 
    6. Start Microsoft Dynamics AX 2012.

Run the AvaTax Install wizard

  1. In Microsoft Dynamics AX 2012, click AvaTax.
    MAX - 2012 -  InstallWizard 1.png
  2. On the AvaTax Installation Wizard, click Next to start the installation.
  3. On the next screen, type the Account Value, License Key, and URL. These were sent to you via email from Avalara Support. Select Verify Credentials to validate.
  4. The following screen indicates a successful validation. Click OK.
    MAX - 2012 -  InstallWizard 4.png
  5. Click Next to continue.
  6. On the next screen, select the Sales tax group code from the drop-down menu. We recommend you select AVATAX. Click Next.
  7. On the Do you want to enable AvaTax now? screen, select both checkboxes to enable tax calculation and select the address validation checkbox to enable address validationHoverTT.png . Click Next.
  8. To complete the installation and create new records in Microsoft Dynamics AX, click Finish
  9. The following message displays, asking you to configure the ledger posting group and sales tax settlement period. Click OK.
    MAX - 2012 -  InstallWizard 9.png
  10. 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
  11. 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
     
  12. 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 Microsoft Dynamics AX 2012 R3

Learn how to install AvaTax for Microsoft Dynamics AX 2012 R3.

Install AvaTax for Microsoft Dynamics AX 2012 R3

  1. After you download the ZIP file from the Admin Console, unzip the contents to your local drive.
  2. Run AvaTaxforMicrosoftDynamicsAX.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.

Install and compile the AVA Model files

  1. Install the AVA Model files in Microsoft Dynamics AX 2012 R3:
    1. Go to Control Panel > System and Security > Administrative Tools > Services. Right-click Microsoft Dynamics AX Object Server, and then select Stop. This will stop the AOS service.
    2. Go to Control Panel > System and Security > Administrative Tools. Right-click Microsoft Dynamics AX 2012 Management Shell, and then select Run as administrator
    3. Uninstall any previous model file in the AVA layers. Type the following command in the Microsoft Dynamics AX 2012 Management Shell
      Uninstall-AXModel -Model “AVA Model”
    4. Install the new model file in the AVA layers. Type the following command in the Microsoft Dynamics AX 2012 Management Shell
      Install-AXModel -File "<path of model file>"
    5. Confirm the installation by typing Y and then click Enter:
      Do you want to continue? Y (Yes) / N (No):
    6. Close Microsoft Dynamics AX 2012 Management Shell
  2. Compile Microsoft Dynamics AX 2012 R3:
    1. Go to Control Panel > System and Security > Administrative Tools > Services. Right-click Microsoft Dynamics AX Object Server, and then select Start. This will start the AOS service. 
    2. Start Microsoft Dynamics AX 2012. Installation of a new model file displays several options. Click Compile and synchronize (Advanced) option to start the compilation process. 
    3. Go to System administration > Periodic, and then click Compile into .NET framework CIL
    4. Close Microsoft Dynamics AX 2012.
    5. Go to Control Panel > System and Security > Administrative Tools > Services and restart the AOS service. 
    6. Start Microsoft Dynamics AX 2012.

Set up AvaTax for Microsoft Dynamics AX 2012 R3

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 dialog box, next to Enter your Avalara account credentials, click the > button.
  3. On the Avalara account credentials page, click Edit Setting to enter the following information:
    1. Account Number, which you received from Avalara when you set up your AvaTax account.
    2. License Key, which you received from Avalara when you set up your AvaTax account.
    3. User name and associated Password, which you received from Avalara when you set up your AvaTax account.
    4. Next to Web service URL, depending on what kind of account you have, select Production or Development.
    5. Next to Web service URL, 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.
    6. 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.
    7. Click Close.
  4. In the Avalara Setup Assistant dialog box, 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.
  5. In the Avalara Setup Assistant dialog box, next to Enable Address Validation for USA and Canada, click the > button. In the Country Code table, click the checkboxes next to the countries you want to enable address validation, and then click Close.
  6. In the Avalara Setup Assistant dialog box, 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.
  7. To set up your tax profile using the AvaTax tax profile assistant, in the Avalara Setup Assistant dialog box, click Click here to launch the AvaTax Tax Profile Assistant.
  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.

3. Configure

After you run the Setup and Install Wizards for AvaTax for Microsoft Dynamics AX 2012, you can configure it to meet your unique sales tax needs:

  • Registering Microsoft Dynamics AX  to work with your AvaTax account
  • Validating your license
  • Configuring address validation by country
  • Enabling company-specific information for AvaTax reports
  • Setup of product and services taxability
  • Setup of address specific customer exemptions

Configuration settings

The Configuration window displays after completing the setup wizard and allows you to edit your account value, end user license key and URL. Go to AvaTax > Area page and click Configuration Setting.

  1. Account Credentials:
    1. To edit Account Credentials, click Edit Settings and add or modify the following details:
      Account Number: The account number that you received from Avalara in an email when you signed up for your AvaTax account.
      License Key: The license key that you received from Avalara in an email when you signed up for your AvaTax account.
      URL: 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 and associated Password: Received from Avalara when you set up your AvaTax account.
      Company Code: Your AvaTax company code.
    2. Click Verify Credentials to verify the updated account credentials.
  2. The General tab:

    General Options

    • Display all warning messages: Enables/disables warning messages. Error messages, however, will always be displayed.
    • Tax Mapping Code: Controls how tax codes are assigned to items. Selecting the check box enables 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: Enables the use of entity/use code to exempt customer records.
    • Send Item account to AvaTax: Enable to send the item account details to AvaTax.
    • Use UPC as Item Code: Enable to send UPC instead of the item code to maintain item taxability.

    Return Order Address: Select the address for return orders.

    Shipment Options: Controls the assignment of tax codes to additional charge items. Available additional charge items are displayed in the window on the left, and can be assigned to tax codes associated with freight or miscellaneous charge references found on the right side of the window.

    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: Enables/disables 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: Click to generate logs in local (AVALE) and log entry portal. We don't recommend changing this setting unless advised by Avalara Support.
  3. The Tax Calculation tab:

    General Options

    • Always check address before calculating tax: Generally only recommended if you enter ship-to address on-the-fly during the Microsoft Dynamics AX sales transaction entry process; this option forces an address validation of the sales/billing document prior to tax calculation.
    • 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. The AVATAX sales tax group is suggested.
    • Tax Group Code Mass Update: Accesses a utility to perform a mass updates of the sales tax group code on a range of customers.
  4. The Address Validation tab:

    General Options

    • Return Results in Uppercase: Address validation results are returned in uppercase format.
    Perform Address Validation based on country names selected: {AAT}} only validates addresses in the United States and Canada.
  5. The Consumer Use Tax tab:
    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, then 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 this option 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 either Item Code or Procurement categoryIf the Apply Avalara Goods & Service Code mapped on option is selected as:
      • Item Code: The tax code sent to AvaTax will be Item code. If the Item code is missing, then the Item group is sent. If both Item Code and Item group are missing, then 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, then the Item Code is sent. If both Procurement Category and Item Code are missing, then the Item Group is sent. 
  6. The Project tab:
    Project Invoice Address
    • Project Invoice Address: Select one of the following appropriate project addresses for your invoice:
      • Delivery address
      • Funding source address
  7. Click Close to save your changes.