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Calculate Consumer Use Tax

Use the consumer use assessment and accrual capability in Sage 300 to assess consumer use tax on purchases in real time and accrue the applicable tax amount. Calculate and verify the consumer use tax if the vendor hasn’t charged it, and then accrue the use tax and save the transaction to AvaTax for consumer use reporting. AvaTax also settles your Sage 300 GL accounts for the accrual amount. Downloading a file of the consumer use tax calculated on your transactions can minimize audit risk by giving you better information about your liability.

Note:

To use the consumer use tax assessment and accrual capability, ensure that the General Ledger module and either the Accounts Payable module or the Purchase Orders module is active in Sage 300.

Configure consumer use tax 

Before you start calculating consumer use tax in Sage 300, enable the following consumer use tax assessment options in Sage 300:

  1. Go to Sage 300 > Order Entry > Sage Sales Tax Powered by Avalara > AvaTax Options > Tax Calculation tab > Consumer Use Tax Assessment.
    1. Select Enable Use Tax Assessment.
    2. In the Credit Account No., select the account where the accrual amount is credited.
    3. In the Debit Account Option, select the account from which the accrual amount is debited. You can either select Single Account or Inventory Account.
    4. If you select Single Account in the Debit Account Option, select the associated Debit Account No.
    5. Click Save.
  2. To enable consumer use tax assessment for vendors, go to Sage Sales Tax Powered by Avalara > AvaTax Setup and click AvaTax Vendors Update Utility. In the AvaTax Vendors Update Utility window:
    1. Select or type the Vendor Number.

       
    2. To enable consumer use tax assessment for the selected vendor, select Enable Use Tax Assessment. To disable consumer use tax assessment for the selected vendor, ensure that the Enable Use Tax Assessment is not selected.
    3. Click Save. If you're adding the vendor for the first time, click Add.

Calculate consumer use tax for many transactions

To calculate consumer use tax for receipt entry transactions or invoice entry transactions, follow these steps:

  1. In Sage 300, go to Purchase Orders > P/O transactions and click Receipt Entry.

     
  2. In the P/O Receipt Entry window:
    1. Select the Vendor Number. Either search for the vendor or populate the field automatically by selecting an existing purchase order.
    2. To add a line item, click Item/Taxes. In the Detail Items/ Taxes window, select the Item Number, Location, and Quantity Received, and then click Add. To close this window, click Close. Follow the same process if you want to add more than one line item.
    3. To generate an invoice, go to P/O Receipt Entry window and click Invoice. In the Invoice window, type an invoice number in the Primary Vendor Invoice No. and click Close.
    4. To post the invoice, click Post. Messages are displayed based on the accrue amount suggested.
      • The amount of tax charged to the vendor/seller is correct (i.e., the accrue amount is 0).

      • The amount of tax charged to the vendor/seller is greater than the amount charged by AvaTax (i.e., the accrue amount is overcharged).
      • The amount of tax charged to the vendor/seller is less than the amount charged by AvaTax (i.e., the accrue amount is undercharged). 
        • If you don't want to accrue the self-assessed consumer use tax, click No.
        • If you want to accrue the self-assessed consumer use tax, click Yes. After you click Yes, the consumer use tax is calculated for this transaction and the transaction is added to the AvaTax Use Tax batch.
  3. To verify the details of the batch and commit the transaction to the G/L tables, go to General Ledger > G/L Transactions and click Batch List.
    1. In the G/L Batch List window, select batch AvaTax Use Tax from the list.
    2. To verify the batch details, click Open. After verification, close the batch.
    3. To commit the transactions to the G/L tables, click Post.
  4. To view and verify the transaction amounts details in the general ledgers:
    1. Go to G/L Accounts > Account History Inquiry. In the G/L Account History Inquiry window, select the Account and the Year. The table displays the transactions details for the selection.
    2. Go to G/L Accounts > Transaction History. In the Transaction History window, select the Account and the Period Ending, and enter GL-JE as the Source Code. The table displays the transactions details for the selection.
  5. TransactionsHoverTT.png are stored in the Admin Console on the transactions tab. In the example below, you can see the details of the invoice shown above. For more information, read reviewing transactions.