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Calculate Sales Tax

Calculate sales tax using latitude and longitude or the ship-to address in AvaTax for Microsoft Dynamics NAV. After calculating sales tax, take a look at the transaction details to review the transaction.

To calculate sales tax for a transaction with AvaTax, ensure that:

Calculate tax on transactions

AvaTax for Microsoft Dynamics NAV calculates sales tax and posts the transactions in Microsoft Dynamics NAV for the following sales or credit transaction types:

  • Sales and service quotes, orders, invoices, and credit memos
  • Return orders
  • Posted sales and service invoices and credit memos
  • Blanket and return sales orders
  • Sales order shipping, sales order invoicing

To calculate tax on a transaction, such as a sales order in Microsoft Dynamics NAV, follow these steps:

  1. In the left pane of Microsoft Dynamics NAV, click Departments > Sales & Marketing > Order Processing.
  2. In the right pane under Lists, click a transaction type such as Sales Invoices, and in the upper left, click New.
  3. Create the sales invoice or other transaction type and the following relevant details:
    • Add a Location Code for the first line item. If you do not add a Location Code, then the Location Code selected and sent from Microsoft Dynamics NAV to AvaTax is based on the following conditions:   
      • If the line item doesn't have a Location Code and the Shipping tab has a location code, then the line item is assigned the shipping tab's Location Code.
      • If the line item and the Shipping tab don't have a Location Code and the responsibility center has a Location Code, then the line item is assigned the responsibility center's Location Code.
      • If the line item and the Shipping tab and the responsibility center don't have a Location Code, and the company has a Location Code, then the line item is assigned the company's Location Code.
      • If all (line item, Shipping tab, responsibility center, company) the locations don't have a Location Code, then the company code is assigned as the Location Code
    • To apply a discount, add the Invoice Discount % or the Invoice Discount Amount
    • On the General tab, type the External Document No.. For an invoice, the External Document No. in Microsoft Dynamics NAV is displayed as the Purchase Order No. in the Admin Console.  
    • On the Invoicing tab:
      • Select the Tax Area Code as:.
        • AVATAX when your shipping and warehouse addresses are different. 
        • AVATAX-POD when your shipping address is same as your warehouse address. 
      • Type your Business Identification Number (BIN) as the Tax Registration No to handle Non-NA operations.
    • On the Shipping tab, to calculate sales tax based on the ship-to address, select the Ship-to Code.
    • On the Prepayment tab:
      • In case of prepayment, type the Prepayment %.
      • To include the tax amount in the prepayment invoice / credit memo amount, select Prepmt Include Tax.
  4. Click OK. AvaTax automatically calculates the correct sales tax, based on how you configured AvaTax for Microsoft Dynamics NAV. AvaTax also posts a new committed document in the Admin Console using the Microsoft Dynamics NAV transaction number as the document code.
    NAV2013_SalesInvoice1.png

Calculate tax for multiple transactions

To calculate tax for multiple transactions at a time using AvaTax for Microsoft Dynamics NAV, follow these steps:

  1. In Microsoft Dynamics NAV, go to Departments > AvaTax > Utilities and click Tax Calculation Update Utility.

    TaxCalculationUpdateUtility.png

  2. On the Tax Calculation Update Utility page, select either the Sales section or the Service section based on your requirement and then add the following details:
    • Transaction Type: Select the type of transaction that you want AvaTax to process.
    • Start Date and End Date: Select the range of dates. AvaTax processes transactions created in this range.
  3. In the Module, click Get Tax
  4. Once processing is complete, to view the sales tax amount, click the Tax Calculation Update Utility Results tab.

Calculate sales tax by latitude and longitude

If a customer has a location such as an oil-rig, drilling platform, or radio antenna that has no street address, you can still calculate sales tax on that location by latitude and longitude. Here's how:

  1. Create a new sales invoice or other transaction, and in the Shipping pane, next to Ship-to-Code, click LATLONG.
  2. In the Ship-to Code pane,  click Advanced.
  3. In the Select - Ship-to Address List dialog box, click Edit.
  4. In the Edit - Ship-to Address List dialog box, on the Navigate tab, click Latitude / Longitude.
  5. In the Edit - AVA Cust Entry for Lat Long dialog box, next to Latitude and Longitude, type the latitude and longitude coordinates for the location in decimal format. (To convert coordinates in degrees/minutes/seconds format to decimal degrees format, try the online converter on federal communication commission's latitude/longitude conversions.) Click OK.
  6. Click Function > Statistics and then click Close.
  7. Click OK. The updated tax amount is displayed on the transaction.

Use a ship-to address to calculate tax

  1. In Microsoft Dynamics NAV, create a transaction such as a sales invoice.
  2. In the New - [Transaction] dialog box, on the Shipping pane, next to Ship-to Code, select a ship-to code for the transaction, and then click OK.

    NAV_UseShipToAddress1.png

Use the date to calculate sales tax on a credit memo

In AvaTax for Microsoft Dynamics NAV, you can calculate sales tax even after you change the date of a credit memo. To calculate tax after you have changed the date of a credit memo, follow these steps:

  1. In Microsoft Dynamics NAV, on the left pane, click Departments, click Sales & Marketing, and then click Order Processing.
  2. On the right pane under Lists, click a transaction type such as Sales credit memo, and at the upper left, click New.
  3. Create the sales credit memo.

  4. Go to the Line tab and click Avalara Functions > Tax Calculation Date. Select the date, and then click OK.

    AvaTax calculates the correct sales tax, based on how you configure AvaTax for Microsoft Dynamics NAV. AvaTax also posts a new committed document in the Admin Console using the Microsoft Dynamics NAV transaction number as the document code.

Adjust sales tax on credit memos

In AvaTax for Microsoft Dynamics NAV, you can adjust sales tax only on credit memos. To adjust sales tax on credit memo transactions, ensure that the transaction has:

  • The Enable Tax Amount Adjustment option is enabled
  • Amount to be credited in the Tax Credit field

To adjust sales tax on credit memos, follow these steps:

  1. In Microsoft Dynamics NAV on the left pane, click Departments, click Sales & Marketing, and then click Order Processing.
  2. On the right pane under Lists, click a transaction type such as Sales credit memo, and at the upper left, click New.
  3. Create the sales credit memo with a non-inventory item called SALESTAXADJUST with a line amount of the amount that you wish to adjust for this customer.

  4. Click Functions > Statistics and then click Close.

  5. Click OK.
  6. Click Yes in the "Do you want to post the credit memo?" dialog window.

    AvaTax automatically calculates the correct sales tax, based on how you configure AvaTax for Microsoft Dynamics NAV. AvaTax also posts a new committed document in the Admin Console using the Microsoft Dynamics NAV transaction number as the document code.

View tax calculation details for a transaction

  1. In Microsoft Dynamics NAV, on the left pane, click Home and then click the type of transaction that you want to view, such as Sales Invoices.
  2. Open the transaction for which you want to view details.
  3. On the Microsoft Dynamics NAV toolbar, click Statistics.

    NAV2013_ProcessTax1.png
  4. After reviewing the transaction, in the View - AvaTax Document Statistics window for the transaction, click Close.

    NAV2013_ProcessTax2.png

Recalculate sales tax on sales transactions

  1. In Microsoft Dynamics NAV on the left pane, click Avatax, and then click Utilities.
  2. In the right pane under Administration, click Tax Calculation Update Utility.
  3. In the Edit - Tax Calculation Update Utility dialog box, in the Sales pane, next to Transaction Type, select a sales transaction type such as Invoice.

    NAV_RecalculateBatches1.png
  4. Next to the transaction menu (Invoice in the screenshot below), type a transaction number plus two periods (..) and another transaction number, such as 1033..1092, to select a range of transactions.
  5. Next to Start Date and End Date, type or select a start and end date if you want to further filter the range of transactions.

    NAV_RecalculateBatches2.png
  6. In the Edit - Tax Calculation Update Utility dialog box at the top, click Sales Get Tax.

    NAV_RecalculateBatches3.png
  7. If you want to see the results of the tax recalculation, in the Edit - Tax Calculation Update Utility dialog box, at the bottom, click Tax Calculation Update Utility Results.

    NAV_RecalculateBatches4.png
  8. In the Edit - Tax Calculation Update Utility dialog box at the bottom right, click OK.

Recalculate sales tax on service transactions

  1. In Microsoft Dynamics NAV on the left pane, click Avatax, and then click Utilities.
  2. In the right pane under Administration, click Tax Calculation Update Utility.
  3. In the Edit - Tax Calculation Update Utility dialog box, in the Service pane, next to Transaction Type, select a service transaction type such as Service Invoice.

    NAV_RecalculateBatches5.png
  4. Next to the transaction menu (Invoice in the screenshot below), type a transaction number plus two periods (..) and another transaction number, such as SCI0000001..SCI0000007, to select a range of transactions.
  5. Next to Start Date and End Date, type or select a start and end date if you want to further filter the range of transactions.

    NAV_RecalculateBatches6.png
  6. In the Edit - Tax Calculation Update Utility dialog box at the top, click Sales Get Tax.

    NAV_RecalculateBatches7.png
  7. If you want to see the results of the tax recalculation, in the Edit - Tax Calculation Update Utility dialog box, at the bottom, click Tax Calculation Update Utility Results.

    NAV_RecalculateBatches8.png
  8. In the Edit - Tax Calculation Update Utility dialog box at the bottom right, click OK.