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Install and Configure Avalara AvaTax for Microsoft Dynamics NAV

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.

If you've previously installed the integration, learn how to upgrade to the latest version.

Prior to installing AvaTax for Microsoft Dynamics NAV, your organization’s Microsoft Dynamics NAV Solution Developer should review your source code to resolve the following:

  • If there are add-on applications, third-party products, or custom-written enhancements within the Microsoft Dynamics NAV application, it's imperative that your organization’s Microsoft Dynamics NAV Solution Provider properly merges the AvaTax code with any other add-ons or custom-written enhancements
  • If you receive an error when you import the avalaraX.fob file, your Microsoft Dynamics NAV Solution Developer must merge the code changes, rather than importing them
  • If you have a customized database, your Microsoft Dynamics NAV Solution Developer must merge the code changes

Download your integration

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

Contact Avalara Professional Services to install and configure AvaTax for your accounting software.

Essential Configuration

The more you personalize the configuration of Microsoft Dynamics NAV, the better your experience may be. It may also help your tax calculations be more correct. While some of the procedures on this page are optional, the procedures in this section are essential.

Configure AvaTax with the Setup Assistant

When you install AvaTax for Microsoft Dynamics NAV, the AvaTax Setup Assistant guides you through the configuration settings required to calculate tax.

  1. To confirm your account credentials:
    1. Next to Enter your Account Credentials and Company Code, click the Assist button SetupAssistant-AssistButton.png. The Avalara Account Credentials page opens,
    2. Fill in the following, and then click Test Connection to confirm you've accurately entered your account credentials :
      Field Action
      Company Code Enter the company code you created when you activated your AvaTax account
      Web Service Make a selection based on your account type
      • Account Number
      • License Key
      Enter the information you received from Avalara in an email when you signed up for your AvaTax account
  2. To map your tax area code:
    1. Next to Map General Ledger Accounts(s) to AvaTax Tax Area Code, click the Assist button SetupAssistant-AssistButton.png. The Tax Area Code page opens.
    2. In the Map Tax Area Code section, from the Tax Area Code list, select AVATAX, and then click Close.    
  3. To manage address validation:
    1. Next to Enable Address Validation for USA and Canada, click the Assist button SetupAssistant-AssistButton.png. The Validate Address page opens.
    2. Optional: To disable address validation, click the checkbox next to Disable Address Validation.
    3. To enable address validation for a country, under Country Codes, select the country name, and then click Map for Address Validation. Countries for which address validation is enabled are listed under Mapped Country Code.
    4. To disable or remove a country from address validation, select the country Name, click Remove from Address Validation, and then click Close
  4. To test your AvaTax connection, next to Test Calculating Tax, click the Assist button SetupAssistant-AssistButton.png,  and then follow one of these steps, as appropriate:
    • If you see a message that says "Congratulations! You are connected to AvaTax. You may still need to complete additional configuration tasks," click Close.
    • If you see any other message, follow steps 1-4 again until you receive a success message.
  5. Click Click here to launch the AvaTax Tax Profile Assistant to launch and configure AvaTax for Microsoft Dynamics NAV.

Configure AvaTax for Microsoft Dynamics NAV

Many configuration options in Microsoft Dynamics NAV are available in the Edit - AvaTax Configuration dialog box.

To open the Configuration dialog box and configure AvaTax for Microsoft Dynamics NAV:

  1. In Microsoft Dynamics NAV, in the left pane, go to Home > Departments > AvaTax > Setup.
  2. In the right pane, under Administration, click AvaTax Configuration. The Edit - AvaTax Configuration dialog box opens.
  3. On the Home tab, in the Process group, click Edit Settings.

    NAV2013_ConfigEditSettings1.png

  4. To modify your AvaTax account credentials in Microsoft Dynamics NAV, in the Account Credentials section, enter the correct information in the following fields:
    Field Action
    • Account Number
    • End User License Key
    Enter the information you received from Avalara in an email when you signed up for your AvaTax account
    URL Enter https://admin-development.avalara.net if you have an AvaTax development account or https://admin-avatax.avalara.net if you have an AvaTax production account
    Company ID Enter your AvaTax company code
  5. On the Home tab, in the Process group, click Verify Credentials.
  6. Complete or modify fields in the remaining sections, using the following information, to configure AvaTax for Microsoft Dynamics NAV as appropriate for your business:
    • The General section:
      Field Description
      Display All Warning Messages Optional: Select to display all warning messages in AvaTax for Microsoft Dynamics NAV.
      Tax Mapping Code Select Tax Group Code, the preferred way to map tax codes. If you need to use Tax Table instead, email Avalara Support.
      User Defined 1 Optional: Select a data type to send customized data to AvaTax. This data displays in the Reference 1 field in the line item. You'll find examples of this data in the menu list.
      User Defined 2 Optional: Select a data type to send customized data to AvaTax. This data displays in the Reference 2 field in the line item. You'll find examples of this data in the menu list.
      Enable Entity Use Code Optional: Select to map entity/use codes for addresses.
      Send Item Account to AvaTax Optional: Select to send the associated general ledger account number to AvaTax for reporting purposes. This data displays in the Revenue Account field in the line item.
      Return Address

      Select the address you want to use for return orders and credit memos.

      • Shipping: The most common selection; uses the ship-to address
      • Customer: Uses the bill-to address
      • Invoicing: Uses the location code address
      Enable Service Module Integration Optional: Select this to use AvaTax with service orders in Microsoft Dynamics NAV.
      Update Default Data Select Country Code.
      Enable Logging Optional: This feature is disabled by default to avoid performance problems. To use this feature, you must stop and restart the NAV service.
      Extensive Logging Optional: Select to generate logs at both local (AVALE) and log entry portal.

     

    • The Tax Calculation section:
      If you want to change any of these settings that we recommend leaving at the default setting, contact Avalara Support
      Field Description
      Disable Tax Calculation Optional: Select to disable AvaTax tax calculations in Microsoft Dynamics NAV.
      Always Check Addresses Before Calculating Tax Optional: Select to validate addresses before AvaTax for Microsoft Dynamics NAV calculates tax. Don't enable this unless you absolutely need to; it may cause extra charges.
      Show AvaTax Tax Details Before Sales Statistics Window Optional: Select to have AvaTax for Microsoft Dynamics NAV show sales tax details before it shows sales statistics.
      Use UPC as Item Code Optional: Select to send the UPC to AvaTax instead of the item code. For more information, learn how to map items to UPC. Using this feature may cause additional fees. Talk to your Customer Account Manager (CAM) for more information.
      Enable COGS (Cost of Goods Sold) Leave at default setting. If you enable this option, you can choose the Tax Group Code. If the selected Tax Group Code is the same as the line tax group code of the transaction, the tax is calculated based on the unit cost (instead of the unit price) specified on the item card. If the selected Tax Group Code is not the same as the line tax group code of the transaction, the tax is calculated based on the unit price specified on the item card.
      Tax Group Code Leave at default setting. You can select a Tax Group Code only if Enable COGS option is enabled.
      Enable Tax Amount Adjustment Leave at default setting unless you want to add a SALESTAXADJUST line item for sales credit memos and service credit memos.
      Exempt Processing

      Leave at default setting. Available options are:

      • Sell-to Customer: Default setting; exemption processing is based on the sell-to customer exemption details.
      • Bill-to Customer: Exemption processing is based on the bill-to customer exemption details.
      • Transaction Level: Exemption processing is based at the transaction level exemption details. (As of now, this option is not applicable and reserved for future use.)
      Tax Area Code Select AVATAX to use AvaTax to calculate sales tax. If you don't select this, AvaTax will not calculate sales tax.
      At Order Release

      Leave at default setting. Available options are:

      • Quantity (Order): Default setting; order quantity is considered for calculating sales tax.
      • Quantity (Ship): Ship-to quantity is considered for calculating sales tax.
      • Quantity (Invoice): Invoice quantity is considered for calculating sales tax.
      At F7 Statistics Select an option to display statistics about it when you press F7.
      Initiate AvaTax based on Tax Area Code Always select to enable AvaTax as the tax-calculation method if an AvaTax tax area code appears on a sales or billing transaction.
      • Map US Country Code
      • Map CAN Country Code

      Optional: Disabled by default. To enable the map country code, ensure the Initiate AvaTax based on Tax Area Code option is disabled, and then select the map country code type to enable. Map the relevant country codes. Based on the country code, perform Statistics and post to AvaTax.

      If enabled, the country code overrides Tax Area Code (in an invoice) and Tax Group Code (on item lines of a transaction). 

      Enable Asynchronous AvaTax Posting 

      Optional: If disabled, when transactions are posted, AvaTax calculates sales tax, and then posts the transaction to both Microsoft Dynamics NAV and AvaTax. After the posting, the Doc Status of this transaction shows as Committed in AvaTax. 

      If enabled, when transactions are posted, AvaTax calculates sales tax, and then posts the transaction to Microsoft Dynamics NAV only. The Doc Status of this transaction shows as Uncommitted  in AvaTax. To post the transaction in AvaTax, use the Asynchronous Posting utility. After you run this utility, the Doc Status of this transaction shows as Committed in AvaTax.

      Country Codes Leave at default setting.

     

    • The Address ValidationHoverTT.png section:
      Field Description
      Disable Address Validation Optional: Select to disable AvaTax address validation in Microsoft Dynamics NAV.
      Return Results in Uppercase Optional: Select to receive address validation results in uppercase text.
      Abort Batch Posting with Errors Optional: If enabled, the Batch Address Validation Utility stops processing addresses if it encounters an error.
      Batch Processing Options Select one of these options:
      • During Batch Address Validation, continue processing regardless of errors: The Batch Address Validation Utility continues to process addresses even after it encounters an error.
      • Scan, Accept and Report Validated Address during Batch Address Validation manually: Select addresses to validate in batches.
      Country Codes Optional: Select a country name on the left, and then, under Country Codes, click Map For Address Validation to make AvaTax validate addresses in that country. (AvaTax only validates addresses in the United States and Canada.)
      Mapped Country Codes Optional: To stop validating addresses in a country, select it, and then click Remove from Address Validation.

Optional Configuration

Use the procedures in this section for further customization and control.

Add tax jurisdiction codes

  1. In Microsoft Dynamics NAV, in the left pane, go to Home > Departments > Financial Management > Setup.
  2. In the right pane, under Sales Tax, click Tax Jurisdictions. The Tax Jurisdictions pane opens.
  3. Select a jurisdiction, and then click Edit List. The Edit - Tax Jurisdictions dialog box opens.
  4. Next to a jurisdiction, select a chart of accounts to which to apply the jurisdiction, and then click OK.

Add tax details

  1. In Microsoft Dynamics NAV, in the left pane, go to Home > Departments > Financial Management > Setup.
  2. In the right pane, under Sales Tax, click Tax Details. The Tax Details pane opens.
  3. Under Tax Type, select Sales and Use Tax for every tax jurisdiction, and then click OK.

Configure resource records

  1. In Microsoft Dynamics NAV, in the left pane, go to Departments > Warehouse > Assembly.
  2. In the right pane, under Lists, click Resources. The Resources pane opens.
  3. Select a resource. The Edit - Resource Card dialog box opens.
  4. In the Invoicing section, next to Tax Group Code, select a tax group code for the resource, and then click OK.

Configure the General Ledger Account

  1. In Microsoft Dynamics NAV, in the left pane, go to Departments > Financial Management > General Ledger.
  2. In the right pane, under Lists, click Chart of Accounts. The Chart of Accounts pane opens.
  3. Double-click an account. The Edit - G/L Account Card dialog box opens.
  4. From the Tax Group Code list, select a tax group code for the account, and then click OK.

Configure item charges

  1. In Microsoft Dynamics NAV, in the left pane, go to Departments > Financial Management > Inventory > Setup.
  2. In the right pane, under Administration, click Item Charges. The Edit - Item Charges dialog box opens.
  3. Select an item, under Tax Group Code select a tax group code for it, and then click OK.