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Avalara Help Center

Assign Customers to AvaTax

Before you can use AvaTax to calculate sales tax, you must change the default tax system for the customer to AvaTax or QuickBooks Desktop will continue to use the tax-calculation system that you used before you switched to AvaTax.

Make AvaTax the tax system for one customer

AvaTax for QuickBooks Desktop stores the tax-calculation method in every customer's record as a tax item. To see that tax item, follow these steps:
 

  1. On the QuickBooks Desktop toolbar, click Customer Center.
  2. On the left, on the Customers & Jobs list, double-click a customer.
  3. In the Edit Customer dialog box, at the bottom under Tax Item, see the tax system for that customer.

    QBv68_UpdateCustomerTaxItem1.png

Make AvaTax the tax system for many customers

AvaTax for QuickBooks Desktop also has a utility that lets you assign many or all customers to AvaTax simultaneously. You might have used this utility when you installed and configured AvaTax for QuickBooks Desktop, but you can use it again at any time.

Note: The Customer Tax Item Update Utility has no "undo" function. Don't use it unless you're sure you want to use AvaTax as your sales-tax calculation system for the customers you assign to it.

To use this utility, follow these steps:
 

  1. On the QuickBooks Desktop File menu, click AvaTax and then select Configuration.
  2. In the AvaTax Configuration dialog box, click the Tax Calculation tab.
  3. At the bottom, click Customer Tax Item Update Utility.

    QBv68_ConfigurationTaxCalculationTabCustomerTaxItemUpdateUtility1.png
  4. In the Customer Tax Item Update Utility dialog box, follow these steps:
    1. Under Range, click any of these:
      • Name and Country to assign customers to AvaTax by name and country where they live. Use this option with Country and State in step c below. Before you click this, the customers in the range you choose must already have a country in their record in QuickBooks Desktop.
      • Name to assign customers to AvaTax without the country filter.
      • Tax Item to to assign customers to AvaTax by tax items
    2. Under Name, click any of these:
      • All Entry to assign all customers to AvaTax by to the range you select in step a.
      • Display Name to assign customers to AvaTax by first letter of their name and by the range you select in step a.
    3. Under Country and State, click either of these:
      • Country to assign customers to AvaTax by country and by the Name and Country range you select in step a.
      • Country to assign customers to AvaTax by country and by the Name and Country range you select in step a.
    4. Next to From Tax Item, select the tax item you wish to connect to.
    5. Next to To Tax item, select AvaTax if it isn't already selected.
  5. At the bottom, click Update.
  6. Once the process finished, there is a displayed report of updated customer records that is only available here.
  7. Click Cancel to close the report and exit the customer tax item update utility.

    QBv68_CustomerTaxItemUpdate1.png