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Calculate Sales Tax

Use AvaTax for Microsoft Dynamics GP to calculate sales tax. Calculate sales tax for one transaction at a time or many transactions at the same time in batches..

Calculate sales tax

AvaTax for Microsoft Dynamics GP automatically calculates sales tax and posts the transactions in Microsoft Dynamics GP. To use AvaTax to calculate sales tax in Microsoft Dynamics GP, follow these steps:

  1. On the Transactions menu, select Sales, and then click Sales Transaction Entry.
  2. In the Sales Transaction Entry dialog box, next to Type/Type ID, select which transaction type you want to calculate sales tax for, including:
    • Return for a returned item or canceled sale
    • Invoice for a sales invoice
    • Fulfillment Order for a fulfillment order
    • Order for a sales order
    • Quote for a sales quote
  3. In the Customer ID field, select by customer ID the customer for whom you want to calculate tax.
  4. In the Default Site ID field, select the location for the transaction. The Default Site ID is sent by Microsoft Dynamics GP as the Location Code to AvaTax for Microsoft Dynamics GP.
  5. In the Ship to Address field, select the ship-to (destination) address for the transaction. This address can either be the detailed address or the latitude and longitude.
  6. In the Date field, select a date. By default, it's today's date.
  7. In the Batch ID field, type or select a batch ID.
  8. In the Currency ID field, select a currency.
  9. Next to Item Number, click the Search (magnifying glass) icon.
    DGP_CalculateSalesTax1.png
  10. In the Items dialog box, click an item, and then click Select.

    DGP_CalculateSalesTax2.png
  11. In the Sales Transaction Entry dialog box, under Invoice Quantity, type a quantity.
  12. To calculate tax on the item or items you selected, press CTRL+T or at the upper left, click Save .

Optional fields in calculating sales tax

Use these optional fields to customize how AvaTax calculates taxes:

  • Customer PO Number: AvaTax can use this on invoices and returns to trigger single-use exemption certificates that you've configured.

  • Trade Discount: If you enter a trade discount, the amount of the discount is allocated to each line item in tax calculations.

  • Freight: AvaTax recognizes this as a line item and associates it with the tax code/shipping code for the shipping method or default tax code that you set in the AvaTax Configuration dialog box.

  • Miscellaneous: AvaTax recognizes this as a line item and can apply tax codes to it.

Change customer details in a transaction

To change the customer details in a transactionHoverTT.png, follow these steps:
 

  1. In the Sales Transaction Entry dialog box, click the blue arrow next to Customer ID.

  2. In the Sales Customer Detail Entry dialog box, change any of the following fields:

    DGP_CalculateSalesTax4.png
    • Click Shipping Method and then do either of the following:
      • Click Delivery and then click Save to use the ship-to address as the address where AvaTax calculates sales taxes. This is the best setting for most of your customer records.
      • Click Pickup and then click Save to use your site address as the address where AvaTax calculates sales tax. This is the best method to use if the customer will travel to your site to pick up taxable items.

        DGP_CustomerMaintenance2.png
    • Tax Schedule ID: Click the Search (magnifying glass) icon to change the tax schedule for this transaction.
    • Tax Registration No.: Type the customer's Tax Registration No., also known as the BIN (Business Identification number). This number is sent from Microsoft Dynamics GP to AvaTax during tax calculation and is displayed in the Admin Console as the Buyer's VAT No. 

      Note:
      This does not save the Tax Registration Number to the customer card. To save the Tax Registration Number for a customer, add it in the Customer Maintenance Options window.

    • Tax-Exempt 1: Type anything in this field to make the customer exempt for this transaction.
  3. In the Sales Customer Detail Entry dialog box, click OK.

Change item details in a transaction

To change item details in a transaction, follow these steps:
 

  1. In the Sales Transaction Entry dialog box, click an item number, and next to Item Number, click the blue arrow.

  2. In the Sales Item Detail Entry dialog box, change any of the following fields:

    DGP_CalculateSalesTax6.png
    • Click Shipping Method and then do either of the following:
      • Click Delivery and then click Save to use the ship-to address as the address where AvaTax calculates sales taxes. This is the best setting for most of your customer records.
      • Click Pickup and then click Save to use your site address as the address where AvaTax calculates sales tax. This is the best method to use if the customer will travel to your site to pick up taxable items.

        DGP_CustomerMaintenance2.png
    • Click Ship To Tax Schedule ID and in the Tax Schedules dialog box, select AVATAX or AVATAX-M to use AvaTax to calculate sales tax for the transaction. Then click Select.
    • Click Item Tax Schedule ID and in the Tax Schedules dialog box, select AVATAX or AVATAX-M to use AvaTax to calculate sales tax for the transaction. Then click Select.

      DGP_CalculateSalesTax7.png
    • In the Sales Item Detail Entry dialog box on the Additional menu, click AvaTax Override Line Details, and in the AvaTax Override Line Details dialog box, do any of the following:
      • Next to Entity/Use Code ID, select a new entity/use code for the item.
      • Next to Latitude and Longitude, type the latitude and longitude for the item, which is useful to calculate tax on items that don't have a physical address.

        DGP_CalculateSalesTax8.png

Calculate sales tax for many transactions

To calculate sales tax for many transactions, follow these steps:

  1. Go to Transactions > Sales and click Sales Batches to create a new batch.
  2. In the Sales Batch Entry window, follow these steps:
    1. Type the Batch ID
    2. Select Sales Transaction Entry as the Origin.
    3. Click Save.

    DGP_BatchEntry.png

  3. Go to Transactions > Sales, and click Sales Transaction Entry.
  4. In the Sales Transaction Entry dialog box, enter all the required details and click Save. Ensure you select Batch ID.

    DGP_SOP.png

  5. Go to Transactions > Sales, click Sales Batches, and select the batch.
  6. In the Sales Batch Entry window, go to Additional > Calculate Tax to calculate sales tax for the batch of transactions.

    DGP_Batch.png

Calculate sales tax using latitude and longitude

For calculating sales tax, use latitude and longitude coordinates instead of the detailed location address. First, map the location's latitude and longitude coordinates from either the Customer Address Maintenance window or the Receivable Transaction Entry window.

Map coordinates from Customer Address Maintenance

To map a location's latitude and longitude coordinates from the Customer Address Maintenance in AvaTax for Microsoft Dynamics GP, follow these steps:

  1. Go to Cards > Customer Address Maintenance.
  2. Select the customer and ensure that the address fields are blank.
  3. In the Customer Address Maintenance window, click Additional > AvaTax Latitude/Longitude.
    DGP_customer_address_maintenance.png
  4. In the AVA Lat/Long Details dialog box, type the Latitude and Longitude coordinates for the address. Click Save.
    DGP_Lat_Long_window.png
  5. In the Customer Address Maintenance dialog box, click Save.

You can now use these Latitude and Longitude details to calculate sales tax for this customer from the Sales Transaction Entry window. 

Map coordinates from Receivable Transaction Entry

To map a location's latitude and longitude coordinates from the Receivable Transaction Entry in AvaTax for Microsoft Dynamics GP, follow these steps:

  1. Go to Transactions > Sales > Transaction Entry
  2. Select the Document Type as Sales / Invoice.
  3. Select the customer and ensure that the address fields are blank.
  4. In the Receivable Transaction Entry window, click Additional > Ava RM Override. In the window, type the Latitude and Longitude coordinates for the address and click Save.
  5. In the Receivable Transaction Entry window, click Save.

You can now use these Latitude and Longitude details to calculate sales tax for this transaction from the Receivable Transaction Entry window. 

Calculate sales tax using tax override

Manually alter the tax amount on a specific transaction with a tax override by either changing the transaction date or the transaction tax amount. Change the tax amount to something other than the value that was previously calculated. To use the tax override feature, ensure the Tax Amount Adjustment functionality via Receivables Transaction Entry option is enabled in configuration.

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

To override tax calculation, follow these steps:

  1. Go to Transactions > Sales, and click Transaction Entry.
  2. Select the transaction for which you want to override the sales tax calculation.
  3. In the Receivables Transaction Entry window:
    • To override tax using the date option, go to Additional > AvaTax RM Override. In the Avalara AvaTax Override Line Details window, type the Date and click Save.

      DGP_Tax_Only_Adjust1.png

    • To override tax using the amount option, click the arrow next to Tax. In the Receivable Tax Entry window, type the Tax Percent / Amount and click Save.  Ensure the Allow Tax adjustment option in the Additional > AvaTax RM Override > Avalara AvaTax Override Line Details is enabled.

      DGP_Tax_Only_Adjust2.png

  4. You can now post the transactions.

Calculate sales tax on return invoices

To calculate sales tax on return invoices, follow these steps:

  1. In Microsoft Dynamics GP,  go to Transactions > Sales and select one of the following:
    • Sales Transaction Entry for a sales transaction
    • Receivable Transaction Entry for a receivable transaction
    • Invoice Entry for an invoice

    InvoiceReturn.png

  2. Select the Document Type as Returns and add all the required details.
  3. Click Save.
  4. Go to Transactions > Sales and select the transaction. 
  5. Open the transaction and click Submit to post this document in Microsoft Dynamics GP.
  6. Go to the Admin Console to see the transaction details. The document displays the amount as negative and the status as Committed.
     

    SOPReturnAdminConsole.png

Recalculate sales orders and AR records in batches

To recalculate sales tax on sales orders and accounts receivable records in batches, follow these steps:

  1. Go to Microsoft Dynamics menu > Tools > Utilities > AvaTax > Update, and then click SOP Tax Update Utility.
  2. Next to Document Type, click SOP (for sales order processing) or AR (for accounts receivable).
  3. Next to Batch ID From and Batch ID To, click the Search icon.
  4. In the Batch IDs dialog box, click the first batch you'd like to update en masse, then click the last batch you'd like to update en masse, and then click Select. The Batch IDs dialog box selects as your update range the first batch that you clicked, the last batch that you clicked, and all batches between the two.
  5. In the AvaTax Tax Update Utility, next to Document Date From and Document Date To, click the Calendar icons to select a date range, or leave them blank to update all records in the batches that you selected in step 4.
  6. Under Transaction Type, click the types of transactions that you'd like to update in batches.
  7. At the upper left, click Update.

    DynamicsGP_SOPTaxUpdateUtility1.png
  8. In the Are you sure you want to continue tax recalculations? message, click Yes.
  9. In the Report Destination dialog box, under Report Type, click Screen, and then click OK.
  10. In the Screen Output - AVA SOP Update Results or Screen Output - AVA AR Update Results report, review the records to make sure they're the ones you wanted to update.