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Install and Configure Avalara AvaTax for Microsoft Dynamics NAV

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!

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

Prerequisites

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

  • If there are add-on applications, third-party products, or custom-written enhancements within the Microsoft Dynamics NAV application, it is 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

1. Install

There are two distinct elements to the AvaTax connector: the adapter and the connector objects. After you download the AvaTax connector for Microsoft Dynamics NAV, install and register the adapter on the server hosting the Microsoft Dynamics NAV application and then install and register the adapter on each workstation where the Microsoft Dynamics NAV client is installed.

Learn how to install and configure AvaTax for Microsoft Dynamics NAV by using the Avalara installer and Setup Assistant for Microsoft Dynamics NAV.

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.
    Integration - download_install 2.png
  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). 

Run the AvaTax setup wizard

Once you have downloaded the AvaTax Connector ZIP file from the Admin Console, run the AvaTax setup wizard as an Administrator on every Microsoft Dynamics NAV application server.

  1. Run AvaTax Setup.exe to install AvaTax for Microsoft Dynamics NAV.
  2. On the Welcome to the InstallShield Wizard screen, click Next.
    NAV-setupwizard.png
  3. On the Ready to Install the Program screen, click Install
    NAV-ReadyInstall.png
  4. Wait for the installation to complete while the Install Wizard copies Avalara *.fob integration object files to your local machine and registers the adapter. If you have pre-existing copies of the Avalara.fob file, click Replace All.
    NAV-installing.png
  5. When the installation is complete, click Finish to exit the wizard.
    Nav-FinishInstall.png

Import the avalaraX.fob file

If you have a non-customized Microsoft Dynamics NAV database, import the AvalaraX.fob file to finish installing AvaTax for Microsoft Dynamics NAV. 

Note:
  • The AVALARAX.FOB file is compatible only with a non-customized CRONUS database for Microsoft Dynamics NAV.
  • Don't import this .FOB file if you have a customized CRONUS database.
  • If you have a customized CRONUS database, you must merge the AvalaraX.txt with existing objects.
  • Always use Change to change the existing license file.
  • Don't click Import  because it will remove the current .FLF file from the Microsoft Dynamics NAV folder.
  1. Launch Microsoft Dynamics NAV and log in as SUPER user.
  2. In the Tools menu, click License Information to change the License File to developer. You must have a license that grants you access to the Object Designer.
    NAV-License.png
  3. In the Tools menu, click Object Designer.
    NAV-ObjectDesigner.png
  4. In the File menu, click Import.
  5. In the Import Objects window, locate the AvalaraX.fob file.
    • For 32-bit Windows, browse to C:\Program Files\Avalara\AvaTax Connect Adapter\Bin.
    • For 64-bit Windows, browse to C:\Program Files (x86)\Avalara\AvaTax Connect Adapter\Bin.
  6. Click the AvalaraX.fob file and then click Open.
  7. The AvalaraX.fob file creates and modifies various objects. You will be prompted with a warning, informing you that there are objects in the database with conflicting versions. Click OK to open the Import Worksheet to proceed with the import.

    NAV-YestoImport.png
  8. In the Import Worksheet window, click Replace All.
    NAV-Import Worksheet.png
    1. To avoid conflicts, select specific unused IDs from the worksheet and import objects.

  9. Click OK on the Import Objects dialog box.
    NAV-Import Objects.png
  10. When the import is complete, recompile all native objects (all objects that AvalaraX.fob has replaced).

2. Configure

When you install AvaTax for Microsoft Dynamics NAV, the AvaTax Setup Assistant automatically completes the most important configuration steps. You can also further configure AvaTax for Microsoft Dynamics NAV.

Configure AvaTax with the Setup Assistant

The Avalara Setup Assistant guides you through the configuration settings required to calculate tax.

  1. In the Avalara Setup Assistant page, click the Assist (...) button to open the page.

    SetupAssistant.png

  2. Next to Enter your Account Credentials and Company Code, click the ... button.

     

    1. On the Avalara Account Credentials page, the following information is displayed:

      AccountCredentials.png

      • 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.
      • Web Service: Select Production or Development based on the type of account; .
      • Company Code: Type your company code that you created when you activated your AvaTax account.
    2. Click Test Connection to confirm your account credentials 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.
  3. Next to Map General Ledger Accounts(s) to AvaTax Tax Area Code, click the ... button to open the Tax Area Code page.
  4. In the Tax Area Code drop-down, select AVATAX and then click Close.

    TaxAreaCode.png

  5. Next to Enable Address Validation for USA and Canada, click the ... button to open the Validate Address page.
    1. If you want to disable address validation, click the checkbox next to Disable Address Validation.
    2. Address validation is based on your Country selection:
      • 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.
      • To disable or remove a country from Address Validation, select the country Name and then click Remove from Address Validation. Click Close
        EnableAddressValidation.png
  6. Next to Test Calculating Tax, click the ... button, and then follow one of these steps:
    • If you see a message that says "Congratulations! You are connected to AvaTax. You may still need to complete additional configuration task..." click Close.
    • If you see any other message, follow steps 1-4 again.
  7. Click Click here to launch the AvaTax Tax Profile Assistant to launch and configure AvaTax for Microsoft Dynamics NAV.
    ConnectedToAvalaraService.png

Open the configuration pane

Many configuration options in Microsoft Dynamics NAV are available in the Edit - AvaTax Configuration pane. To open this pane, follow these steps:

  1. In Microsoft Dynamics NAV on the left pane, click Home, click Departments, click AvaTax, and then click Setup.
  2. On the right pane under Administration, click AvaTax Configuration.
  3. In the Edit - AvaTax Configuration dialog box, on the toolbar, in the Process group, click Edit Settings.

    NAV2013_ConfigEditSettings1.png

    1. Account Credentials

      To enter and verify your AvaTax account credentials in Microsoft Dynamics NAV, follow these steps:

      • In the Edit - AvaTax Configuration pane, click Account Credentials and type the correct information in the following fields:
        • Account Number: The account number that you received from Avalara in an email when you signed up for your AvaTax account.
        • End User 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
        • Company ID: Your AvaTax company code
      • On the Microsoft Dynamics NAV toolbar, in the Process group, click Verify Credentials.
      • If you see an error message, repeat steps 1-2.
        NAV2013_ConfigCredentials1.png
    2. General

      To configure general options in AvaTax for Microsoft Dynamics NAV, In the Edit - AvaTax Configuration pane, click General and edit any of the following fields:

      • Display All Warning Messages: Click to display all warning messages in AvaTax for Microsoft Dynamics NAV.
      • Tax Mapping Code: Next to this, 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: Click to send customized data to AvaTax. This data is displayed in the Reference 1 field in the line item. You'll find examples of this data in the menu list.
      • User Defined 2: Click to send customized data to AvaTax.  This data is displayed in the Reference 2 field in the line item. You'll find examples of this data in the menu list.
      • Enable Entity Use Code: Click to map entity/use codes for addresses.
      • Send Item Account to AvaTax: Click to send the associated general ledger account number to AvaTax for reporting purposes.  This data is displayed in the Revenue Account field in the line item. 
      • Return Address: Select the address you want to use for return orders and credit memos from this list:
        • Shipping: This is the most common selection and uses the ship-to address.
        • Customer: This selection uses the bill-to address.
        • Invoicing: This selection uses the location code address.
      • Enable Service Module Integration: Select this to use AvaTax with service orders in Microsoft Dynamics NAV.
      • Update Default Data: On this menu, select Country Code.
      • Enable Logging: Click and follow the steps below in configure transaction logging for troubleshooting to enable logging. This feature is disabled by default to avoid performance problems. In order to use this feature, you will need to stop and restart the NAV service.
      • Extensive Logging: Click to generate logs at both local (AVALE) and log entry portal.
    3. Tax Calculation

      To configure how AvaTax calculates sales tax, In the Edit - AvaTax Configuration pane, click General and edit any of the following:

      Note:
      If you want to change any of the above settings that we recommend to leave at the default setting, please contact Avalara Support.

      • Disable Tax Calculation: Click to disable AvaTax tax calculations in Microsoft Dynamics NAV.
      • Always Check Addresses Before Calculating Tax: Click to validate addresses before AvaTax for Microsoft Dynamics NAV calculates tax. Don't enable this unless you absolutely need to because it may cause extra charges.
      • Show AvaTax Tax Details Before Sales Statistics Window: Click to have AvaTax for Microsoft Dynamics NAV show sales tax details before it shows sales statistics.
      • Use UPC as Item Code: Select if you want to send the UPC 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, then 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, then 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: This is the default setting and if selected, the exemption processing is based on the sell-to customer exemption details.
        • Bill-to Customer: If selected, the exemption processing is based on the bill-to customer exemption details.
        • Transaction Level: If selected, the 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 to use AvaTax to calculate sales tax. This is the most important option to select here because if you don't select this, AvaTax will not calculate sales tax.
      • At Order Release: Leave at default setting. Available options are:
        • Quantity (Order): This is the default setting and if selected, then the order quantity is considered for calculating sales tax.
        • Quantity (Ship): If selected, then the ship-to quantity is considered for calculating sales tax.
        • Quantity (Invoice): If selected, then the invoice quantity is considered for calculating sales tax.
      • At F7 Statistics: Select one of these options to display statistics about it when you press F7.
      • Initiate AvaTax based on Tax Area Code: Always click 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 and Map CAN Country Code: Disabled by default. To enable the map country code, ensure that the Initiate AvaTax based on Tax Area Code option is disabled and then select the checkbox. If enabled:
        • The Country Code overrides the Tax Area Code (in an invoice) and the Tax Group Code (on item lines of a transaction). 
        • Map the relevant country codes.
        • Based on the country code, perform Statistics and post to the Admin Console.
      • Enable Asynchronous AvaTax Posting:
        • If this option is disabled, the transactions are posted synchronously, i.e. during the posting operation, AvaTax calculates sales tax, and then posts the transaction to both Microsoft Dynamics NAV and Admin Console. After the posting, the Doc Status of this transaction is shown as Committed  in the Admin Console. 
        • If this option is enabled, the transactions are posted asynchronously, i.e. during the posting operation, AvaTax calculates sales tax, and then posts the transaction to Microsoft Dynamics NAV only. The Doc Status of this transaction is shown as Uncommitted  in the Admin Console. To post the transaction in the Admin Console, use the Asynchronous Posting utility. After you run this utility, the Doc Status of this transaction is shown as Committed  in the Admin Console. 
      • Country Codes: Leave at default setting.
        NAV2013_EditAvaTaxConfiguration1.png
    4. Address Validation

      To configure address validationHoverTT.png in Microsoft Dynamics NAV, in the Edit - AvaTax Configuration pane, click Address Validation and edit any of the following fields:

      • Disable Address Validation: Click to disable AvaTax address validation in Microsoft Dynamics NAV.
      • Return Results in Uppercase: Click to receive address validation results in uppercase text.
      • Abort Batch Posting with Errors: Click so that the Batch Address Validation Utility will stop processing addresses if it encounters an error.
      • Batch Processing Options: Click one of these options:
        • During Batch Address Validation, continue processing regardless of errors: Click so that the Batch Address Validation Utility will continue to process addresses even after it encounters an error.
        • Scan, Accept and Report Validated Address during Batch Address Validation manually: Click to select addresses to validate in batches.
      • Country Codes: Click 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 validates addresses only in the United States and Canada.)
      • Mapped Country Codes: Click any of these and then click Remove from Address Validation to stop validating addresses in that country.
        NAV2013_ConfigAddressValidation1.png

Configure transaction logging for troubleshooting

To troubleshoot transactions in Microsoft Dynamics NAV, follow the steps below to generate transaction logs:

  1. On the machine where NAV Application Server (NAS) is installed, use a text editor such as Notepad to open the following configuration file:
    c:\Windows\assembly\gac_msil\Avalara.AvaTax.Adapter\14.4.0.0__34e4ef76d6267205\Avalara.AvaTax.Adapter.dll.config
  2. Edit the values in the following variables in the above configuration file:
    Variable Value Details
    logFilePath <path> The path where the adapter log files are created, relative to the location of the adapter assembly
    logLevel NONE (default) | DEBUG | INFO | WARNING | ERROR | FATAL Sets the level for all adapter logging
    logMessages true | false Enables event logging to the Adapter.YYYY-MM-DD.log file
    logTransactions true | false Enables logging the results of each web service transaction to the
    AdapterTransactions.YYYY-MM-DD.log file
    logSoap true | false Enables SOAP logging to the AdapterSoap.YYYY-MM-DD.log file
  3. Save the configuration file.
  4. Restart NAS.

Configure tax calculation updates

The Tax Calculation Update utility lets you recalculate tax on a batch of documents, which you might need to do after a connectivity outage.

  1. In Microsoft Dynamics NAV on the left pane, click Home, click Departments, click AvaTax, and then click Utilities.
  2. On the right pane under Administration, click Tax Calculation Update Utility.
  3. In either the Sales or Service pane, next to Transaction Type, select a transaction type.
  4. Choose one of the following options:
    • Next to the transaction type name (Invoice in the screen below), select a range of transactions to update.
    • Next to State Date and End Date, select a range of dates for the transactions that you want to update.
  5. On the Edit - Tax Calculation Update Utility dialog box's toolbar, click either Sales Get Tax or Service Get Tax, depending on whether you want to update sales or service transactions.
    NAV2013_ConfigTaxCalcUpdate1.png

Add tax jurisdiction codes

  1. In Microsoft Dynamics NAV on the left pane, click Home, click Departments, click Financial Management, and then select Setup.
  2. On the right pane under Sales Tax, click Tax Jurisdictions.
  3. In the Tax Jurisdictions pane, click a jurisdiction.
    NAV2013_ConfigTaxJurisdictions1.png
  4. At the upper left, click Edit List.
  5. In the Edit - Tax Jurisdictions dialog box, next to any jurisdiction, select a chart of accounts to which to apply the jurisdiction, and then click OK.
    NAV2013_ConfigTaxJurisdictions2.png

Add tax group codes

The tax group code works with the tax code that AvaTax uses during sales-tax calculations. You use them to group similar Microsoft Dynamics NAV items, resources, fixed assets, item charges, and general ledger accounts in sales and billing for taxability purposes. For AvaTax Pro users, you must create the AvaTax system tax codes as tax group codes. If you add custom tax codes to the Admin Console, you must establish corresponding tax group codes. Here's how to add a tax group code.

  1. In Microsoft Dynamics NAV on the left pane, click Home, click Departments, click Financial Management, click Setup, and then click Sales Tax.
  2. On the right pane under Sales Tax, click Tax Groups.
    NAV2013_ConfigTaxGroups1.png
  3. At the upper left, click Edit List.
  4. In the Edit - Tax Groups dialog box, type a new code, description, country, and tax rounding method, and then click OK.
    NAV2013_ConfigTaxGroups2.png

Add tax area codes

  1. In Microsoft Dynamics NAV on the left pane, click Home, click Departments, click Financial Management, and then select Setup.
  2. On the right pane under Sales Tax, click Tax Areas.
  3. In the Tax Areas pane, at the upper left, click Edit List.
  4. In the Edit - Tax Area List dialog box, type a new code and description, and then click OK.
    NAV2013_ConfigTaxAreas2.png

Add tax details

  1. In Microsoft Dynamics NAV on the left pane, click Home, click Departments, click Financial Management, and then select Setup.
  2. On the right pane under Sales Tax, click Tax Details.
  3. In the Tax Details pane, under Tax Type, select Sales and Use Tax for every tax jurisdiction, and then click OK.
    NAV2013_ConfigTaxDetails1.png

Configure customer records

Configure a customer record to select AvaTax as the customer's sales-tax-calculation method and to validateHoverTT.png the customer's address.

  1. In Microsoft Dynamics NAV on the left pane, click Home, click Departments, click Sales & Marketing, and then click Sales.
  2. On the right pane under Lists, click Customers.
  3. On the Customers pane, double-click any customer.
  4. In the Edit - Customer Card dialog box, click the Invoicing pane.
  5. To make the customer taxable, select Tax Liable
  6. Next to Tax Area Code, select AVATAX, and then click OK.
    NAV2013_ConfigCustomers1.png

Validate the customer's address

  1. On the Customers pane, double-click any customer.
  2. In the Edit - Customer Card dialog box, click the Actions tab.
  3. Click Avalara Functions, and then click Validate Address.
    NAV2013_ValidateCustomerAddress1.png
  4. In the Edit - Address Validation: Customer Card dialog box, click Accept, and then click Close.
    NAV2013_ValidateCustomerAddress2.png

Configure item records

Configure sales items and add tax group codes to them to calculate sales tax. AvaTax for Microsoft Dynamics NAV uses tax group codes to calculate sales tax. To assign a tax group code to an item, follow these steps:

  1. In Microsoft Dynamics NAV on the left pane, click Home, click Departments, click Sales & Marketing, and then click Inventory & Pricing.
  2. On the right pane under Lists, click Items.
  3. In the Items pane, double-click any item.
  4. In the Edit - Item Card dialog box, click the Invoicing pane.
  5. Next to Tax Group Code, select a tax group code for the item, and then click OK.

NAV2013_ConfigItems1.png

Configuring resource records

  1. On the left pane, click Departments, click Warehouse, and then click Assembly.
  2. On the right pane, under Lists, click Resources.
  3. In the Resources pane, click a resource.
    NAV2013_ConfigResources1.png
  4. In the Edit - Resource Card dialog box, click the Invoicing pane.
  5. Net to Tax Group Code, select a tax group code for the resource and then click OK.
    NAV2013_ConfigResources2.png

Configure the General Ledger Account

  1. In Microsoft Dynamics NAV on the left pane, click Departments, click Financial Management, and then click General Ledger.
  2. On the right pane, under Lists, click Chart of Accounts.
  3. In the Chart of Accounts pane, double-click an account.
  4. In the Edit - G/L Account Card dialog box, click the Posting pane,
  5. Next to Tax Group Code, select a tax group code.
    NAV2013_ConfigGLAccount1.png

Configure item charges

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

NAV2013_ConfigItemCharges1.png