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Install and Configure Avalara AvaTax for Microsoft Dynamics CRM

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

Update these settings when your business needs change.

Download AvaTax for your accounting software

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, .pdf, or .msi). 

Install AvaTax for your accounting software

  1. Log in to Microsoft Dynamics CRM as a System Customizer.
  2. Go to Settings > Solutions > Import and select the .zip file from AvaTax.
  3. Use the wizard to install AvaTax for Microsoft Dynamics CRM.

Configure

Configure AvaTax for your accounting software

To configure your company settings:

  1. Log in to Microsoft Dynamics CRM as a System Customizer.
  2. Go to Settings > Solutions > Avalara AvaTax > Configuration.
  3. On the AvaTax Configuration page, fill in the following fields, and then click Test Connection.
    Field Action
    • Account Number
    • License Key
    Use the information provided in an email from Avalara (sent to the email account you used to activate your account). It must match what's saved in AvaTax.
    Development Environment For development accounts, ensure this option is enabled. For production accounts, ensure this option isn't enabled.
    Company Code This is the code you entered when you activated your AvaTax account. Every accounting software that works with AvaTax uses a company code to identify itself to AvaTax. Here's some help if you can't find your company code in Microsoft Dynamics CRM.
  4. Go to Settings > Avalara AvaTax.
  5. On Active Avalara AvaTax, click AvalaraTax.
  6. On the AvalaraTax page, set the following options, and then click Save.
    Field Action

    Commit

    Optional: If this option is enabled, transactions are automatically committed to AvaTax, and the Doc Status of this transaction is shown as Committed in AvaTax. 
    Enable logging? Optional: This function is primarily used for troubleshooting issues. If you choose to enable logging, all success, warning, and error messages are included in the log. Only enable logging if you've been instructed to do so by Avalara Support, because it can significantly slow down your service.
    Status Optional: If you choose to disable Status, Microsoft Dynamics CRM no longer uses AvaTax to calculate tax on transactions or validate addresses.

Configure Microsoft Dynamics CRM to map items to Avalara tax codes

The process is simple. Map items to Avalara tax codes, and when your accounting software processes transactions or when you upload the transactions to AvaTax, AvaTax determines the taxability for the items you sell based on the rules behind these Avalara tax codes. For more information about Avalara tax codes, see Select Avalara Tax Codes.

Avalara recommends you map items to Avalara tax codes in your accounting software. To learn how to configure your accounting software to map Avalara tax codes in your accounting software, check your accounting software configuration documentation. See our handy chart for a little guidance deciding whether you should map items to Avalara tax codes in your accounting software or directly in AvaTax.

Keep in mind that Avalara updates Avalara tax codes when taxability rules and laws change, but you have to maintain your own custom tax codes and rules; these aren't automatically updated when changes occur. To be sure you're using the most current rules to tax your products and services, use Avalara tax codes. If you map your items to universal product codes (UPCs), you don't need to use Avalara tax codes because UPCs already have taxability rules associated with them.

If you map in your accounting software and in AvaTax, the mapping in AvaTax overrides any mapping in your accounting software.

 

How Do I Map Tax Codes - Final.png

If you're mapping in Microsoft Dynamics CRM, first import Avalara tax codes into Microsoft Dynamics CRM. Import the tax codes in one of these file formats: .xls, .xlsx, or .csv (comma-separated values) and use the column heading labels as follows:

  • Type Code
  • Description
  • Additional Information  

To import Avalara tax codes:

  1. Go to Settings > Extensions > AvaTax Type Codes.
  2. Import Avalara tax codesHoverTT.png

Configure Microsoft Dynamics CRM to exempt customers from sales tax with entity/use codes

If you regularly sell to customers who're exempt from tax, you need to store their exemption certificates and consistently exempt their purchases. There's more than one way to exempt customers:

  • If you already have a method to store exemption certificates, send AvaTax your customers' exemption certificate numbers using your accounting software, or send us entity/use codes that explain why the customer should be exempt.
  • If you don't have a way to store certificates, use ECMS or CertCapture, depending on your needs:
    • To exempt buyers and store an image of their exemption certificates, use ECMS.
    • To exempt customers, and to request, generate, and store exemption certificates, use CertCapture.
You can exempt customers, but that doesn't mean you're compliant. You need valid documentation of your buyer's exemption certificate to support tax exemptions in case of an audit. Valid documentation includes copies of valid exemption certificates and the associated invoices. If you exempt customers from tax with exemption numbers or entity/use codes, keep organized records for all exempt purchases. Exemption Certificate Example - Thumb.png

Exemptions are valid only for the address registered for this account. To exempt a document, ensure that the document ship-to address matches the account's registered address. To add entity use codes to your account:

  1. Go to Sales > Collateral > Accounts and select an account. The account page opens.
  2. To make the account taxable, in the Summary section, for Customer Type, select Taxable.
  3. To exempt the account, for Customer Type, select Exempt and then add the entity/use code.

In Microsoft Dynamics CRM, click Calculate Tax to calculate sales tax using AvaTax. Sales tax calculation isn't automatically triggered after you save or modify a document.