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Calculate Sales Tax

This article applies to:Avalara AvaTax for NetSuite

After you set up and configure your accounting software for AvaTax, calculate sales tax on a variety of transaction types:

  • Estimates
  • Orders
  • Invoices
  • Cash sales
  • Return authorizations
  • Credit memos
  • Cash refunds

Create one of those transaction types and click Save. Your accounting software uses the customer's ship-to address to calculate the correct sales tax. 

If you're applying discounts, take the following information into consideration:

  • The header-level discount is applied to all taxable items in the transaction
  • The line-level discount is applied to the item above the discount row
  • If both the header-level and the line-level discounts are applied, then their cumulative discount is applied to the line item.

Post the following transaction types from your accounting software to AvaTax:

  • Invoices
  • Cash sales
  • Credit memos
  • Cash refunds

Calculate sales tax using a ship-to address

In AvaTax for NetSuite, use a customer's ship-to address to calculate sales tax. Here's how:

  1. Create any of the above transaction types, click Address.
  2. Under SHIP-TO SELECT, select the ship-to address for the transaction.
  3. Click Save.
    NetSuite2014_CalcTaxbyShipTo1.png

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, calculate sales tax on that location using latitude and longitude coordinates. Here's how:

  1. In NetSuite, go to Lists > Relationships, and then click Customers.
  2. In the Customers pane, click Edit next to the customer for which you want to set up latitude and longitude coordinates. The entire customer record must be in edit mode to enter coordinates, otherwise you can only edit the address.
    NetSuite2014_CalcTaxbyLatLong1.png
  3. In the Customer record, click Address.
  4. Next to the customer's address, type a coordinate in the LATITUDE field in decimal format. (To convert coordinates in degrees/minutes/seconds format to decimal degrees format, try the federal communication commission's latitude/longitude conversions site.)
  5. Type the customer's longitude in decimal format in the LONGITUDE field.
  6. Click Save. When you're finished, whenever you create a a transaction for this customer, AvaTax for NetSuite uses the latitude and longitude you specified to calculate the correct tax.
    NetSuite2014_CalcTaxbyLatLong2.png

Calculate sales tax in your NetSuite Web Store

To calculate sales tax on orders in your webstore before you submit them to NetSuite, follow the steps below:

  1. In NetSuite, go to Setup > Site Builder > Set Up Web Site.
  2. Click Edit next to the website which you'd like to calculate tax.
  3. On the Setup tab, under Preferences, enable Scriptable Cart and Checkout.
  4. Click Save.

    NS-ScritpableCartandCheckout.png

Adjust sales tax on credit memos

To adjust sales tax on credit memo transactions, ensure that the transaction has the following:

  • An amount to be credited in the Tax Credit field
  • A non-inventory item called Sales tax adjustment, with a line amount as 0

Once you create a credit memo, NetSuite sends a return invoice to AvaTax. Use the current day's date on the credit memo to avoid errors if the credit occurs in a locked period.

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

  1. Go to Lists > Accounting > Items, and then click New.
  2. On the New Item page, under Non-Inventory Item, click For Sale.
  3. On the Non-Inventory Item for Sale page, create a non-inventory item called Sales Tax Adjustment. Go to the Sales / Pricing tab, and in Price Levels, type a Base Price of 0.
  4. Click Save.
  5. Go to Transactions > Customers, and then click Issue Credit Memos.
  6. On the Credit Memo page, add details. Ensure that:
    1. The amount to be credited is added in the Tax Credit field. This amount is used as the tax override amount.
    2. For a line item, the Item is selected as Sales Tax Adjustment and the line Amount is 0. If the line amount is not 0, then the "Sales Tax Adjustment's line amount should be zero" message is displayed.
  7. Click Save
    TaxCredit.png