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Calculate Sales Tax

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

Send the following customer details in a transaction:

  • Multiple currencies: Ensure the Multicurrency option in the System Manager is selected during the Sage 300 installation.
  • Business Registration Number:
    • Go to Accounts Receivable > A/R Customers > Customers and select a customer.
    • In the A/R Customers window, go to the Address tab and type the customer's Business Registration Number in Business Reg. No.

      Sage_300_Non NA_1_Mapping BIN_cust.png

Note: Ignore the following list of errors noticed in multi-user environments:

  1. Process Error:

    -----O/E Shipment # ZZZZZZZZZZZZZZZ

        ----Shipment Detail.

  2. Record has been modified by another program.

        ----Invoice No: ZZZZZZZZZZZZZZZ is Committed

  3. -----O/E Shipment # ZZZZZZZZZZZZZZZ

        ----Incorrect procedure. You cannot change a completed line.

  4. Process Error:

    -----O/E Order # ZZZZZZZZZZZZZZZ

        ----Incorrect procedure. An order associated with this shipment has been modified by another program.

  5. -----O/E Order # ZZZZZZZZZZZZZZZ

        ----Invalid input. Order number ZZZZZZZZZZZZZZZ has been completed. You can only ship from incomplete orders.

  6. -----O/E Shipment # ZZZZZZZZZZZZZZZ

        ----Incorrect procedure. A shipment associated with this invoice has been modified by another program.

        ----Incorrect procedure. Invoice cannot be posted. You must manually create the invoice from Invoice Entry.

Calculate sales tax for an Order Entry

To calculate tax for an order entry, follow these steps:

  1. Go to Sage 300 > Order Entry > O/E Transactions > Order Entry.
  2. In the Order Entry window, on the Order tab:
    1. Type or select the Customer No.
    2. Select the Ship-To Location.
    3. To add an item, click Item/Taxes
    4. Select the Line Type.
    5. Select the Item Number.
    6. Select the Location. Also known as the location code. The first line item location code is selected and sent in the transaction details. 
    7. Type the Qty. Ordered and Qty. Shipped.
    8. To add a discount at the line-level, type the Discount % or the Disc. Amt.
    9. To change the Tax Class of an item, click the table cell and select the appropriate value in the Tax Classes window.
      • To apply an entity/use code to a line item, select 4. 
      • To exempt a line item, select 2.
    10. To ship all items, click Ship All. Note that if you click Ship All, the Qty. Shipped quantity is not considered and the Qty. Ordered quantity is shipped at the same.
    11. To add more items to this order entry, click Add and repeat the process. 
    12. Click Close
    13. On the Customer tab, the fields are automatically populated after you select the Customer No. If needed, change the Tax Group.

    14. On the Taxes tab, the fields are automatically populated after you select Calc Tax on the Order tab.

    15. On the Totals tab, the fields are automatically populated after you select Calc Tax on the Order tab. To add a discount at the header-level, type the discount percent (%) or the discount amount in Less Order Discount.

  3. Click Post. The Order No. is generated automatically and the sales tax calculated before the order entry is posted.
    • To generate a shipment and invoice from the order entry, ensure that Create Invoice is enabled before you click Post.
    • To calculate and view the sales tax before you post this order entry, click Calc Tax. The tax details are shown in a table on the Taxes tab and the Totals tab. 
  4. Click Close.

Calculate sales tax for a Shipment Entry

To calculate tax for a shipment entry, follow these steps:

  1. Go to Sage 300 > Order Entry > O/E Transactions > Shipment Entry.

  2. On the O/E Shipment Entry window, create a new shipment entry by either selecting the Order Number or by manually adding the details to create the order and the shipment together.

    1. On the Shipment tab, type or select the Order Number.
    2. Type or select the Order Number.
    3. Choose the Ship-To Location.
    4. To edit an item, click Item/Taxes. In the Items/Taxes - O/E Shipment Entry window:
      • Select the Location. Also known as the Location Code. The first line item location code is selected and sent in the transaction details. 
      • Type the Qty. Shipped.
      • To add a miscellaneous item, click New and add the relevant details. To add a discount at the line-level, type the Discount % or the Discount Amount.
      • To change the Tax Class of an item, click on the table cell and select the appropriate value in the Tax Classes window.
        • To apply entity/use code to a line item, Select Class as 4. 
        • To exempt a line item, Select Class as 2.
    5. To ship all items, click Ship All. Note that this button is made visible only if you select a order and not if you create one. If you click Ship All, the Qty. Shipped quantity is not considered and the Qty. Ordered quantity is shipped.
    6. Click Add. If you want to add more miscellaneous items to this shipment entry, repeat this process. 
    7. Click Close.
    8. On the Taxes tab, the fields are automatically populated after you select Calculate Tax on the Shipment tab.

    9. On the Totals tab, the fields are automatically populated after you select Calculate Tax on the Shipment tab. To add a discount at the header-level, type the discount % or the discount amount in Less Ship. Discount.
  3. Click Post. The Shipment No. is generated automatically and the sales tax calculated before the shipment entry is posted.
    • To generate a shipment and invoice from the shipment entry, enable Create Invoice before you click Post.
    • To calculate and view the sales tax before you post a shipment entry, click Calculate Tax. The tax details are shown in a table on the Taxes tab and the Totals tab.

  4. Click Close.

Calculate sales tax for an Invoice Entry

To calculate tax for a invoice entry, follow these steps:

  1. Go to Sage 300 > Order Entry > O/E Transactions > Invoice Entry.

  2. In the O/E Invoice Entry window, create a new invoice entry by selecting the Shipment Number.
    1. On the Invoice tab, type or select the Shipment Number.
    2. Type or select the Shipment Number.
    3. Select the Ship-To Location.
    4. To edit an item, click Item/Taxes. In the Items/Taxes - O/E Invoice Entry window:
      • Select the Location. Also known as the Location Code. The first line item location code is selected and sent in the transaction details. 
      • Type the Qty. Invoiced.
      • To add a miscellaneous item, click New, and add the relevant details. To add a discount at the line-level, type the Discount % or the Discount Amount.
      • To change the Tax Class of an item, click the table cell and select the appropriate value in the Tax Classes window.
        • To apply an entity/use code to a line item, select Class as 4. 
        • To exempt a line item, select Class as 2.
    5. Click Add. If you want to add more miscellaneous items to this invoice entry, repeat this process. 
    6. Click Close.
    7. On the Taxes tab, the fields are automatically populated after you select Calculate Tax on the Invoice tab.

    8. On the Totals tab, the fields are automatically populated after you select Calculate Tax on the Invoice tab. To add a discount at the header-level, type the discount percent (%) or the discount amount in Less Inv. Discount.
  3. Click Post. The Invoice No. is generated automatically and the sales tax calculated before the shipment entry is posted. If you want to calculate and view the sales tax before you post this invoice entry, click Calculate Tax. The tax details are shown in a table on the Taxes tab and the Totals tab.

  4. Click Close.

Calculate sales tax for a Credit/Debit Note

To calculate tax for a credit/debit note, follow these steps:

  1. Go to Sage 300 > Order Entry > O/E Transactions > Credit/Debit Note Entry.

  2. In the O/E Credit/Debit Note Entry window, select the Customer.
  3. Set the Document Type to Credit Note or Debit Note.

  4. To create a new Debit Note or a new Credit Note, choose one of the following methods, depending on your workflow:
    • Select an existing invoice; or
    • Click Items/Taxes to add an item. In the Items/Taxes - O/E Credit/Debit Note Entry window:
      1. Select the Line Type.
      2. Select the Item Number.
      3. Type the Quantity.
      4. To add a discount at the line-level, type the Discount % or the Disc. Amt..
      5. To change the Tax Class of an item, click on the table cell and select the appropriate value in the Tax Classes window.
        • To apply an entity/use code to a line item, Select Class as 4. 
        • To exempt a line item, Select Class as 2.
      6. Click Add. To add more items to this note, repeat this process. 
      7. Click Close.
      8. To add a discount at the header-level, type the discount percent (%) or the discount amount in Less Discount.

  5. Click Post. The Credit Note or Debit Note, as selected in the Document Type, is generated automatically and the sales tax is calculated before the note is posted. To calculate and view the sales tax before you post this note, click Calculate Tax. The tax details are shown in a table on the Taxes tab and the Totals tab.

  6. Click Close.

Calculate sales tax for an Accounts Receivable transaction

To calculate tax for an accounts receivable transaction, follow these steps:

  1. Go to Sage 300 > Accounts Receivable > A/R Transactions > Invoice Entry.

  2. In the A/R Invoice Entry window, click .

  3. Select or type the Customer Number.
  4. Select the Ship-To Location.
  5. Select the Document Type as either Invoice or Credit Note or Debit Note.
  6. Click Account/Tax.
  7. In the Details Accounts/Taxes window, click Items/Taxes to add an item. In the Items / Taxes - O/E Credit/Debit Note Entry window
    1. Select the Item No.
    2. Type the Quantity.
    3. To change the Tax Class of an item, click on the table cell and select the appropriate value in the Tax Classes window.
      • To apply entity/use code to a line item, select Class as 4. 
      • To exempt a line item, select Class as 2.
    4. Click Add. If you want to add more items to this entry, repeat this process. 
    5. Click Close
  8. Click Add. The sales tax is calculated, the tax details are shown on the Taxes and Totals tab, and the invoice entry is added to the batch. If you want to add more entries to this batch, repeat this process.  
  9. Click Close.
  10. Go to Sage 300 > Accounts Receivable > A/R Transactions > Invoice Batch List.
  11. In the A/R Invoice Batch List window:
    1. Select the batch.

    2. Click Post.
    3. In the Confirmation window, select Yes.

    4. If all the invoices are posted to the Admin Console successfully, a message showing the list of committed transactions is shown. Click Close.

    5. If some of the invoices in the batch are not posted to Admin Console successfully, the transaction with an appropriate error message is shown. Click Close. Revise the transactions and try posting the batch again. The batch remains open until all transactions are successfully committed to the Admin Console.

Calculate sales tax on A/R Recurring Charges

To calculate sales tax on A/R recurring charges, create a recurring charge and then an invoice. 

Use one of the following methods to create an invoice:

Create a recurring charge

  1. Go to Sage 300 > Accounts Receivable > A/R Customers > Recurring Charges.

  2. In the A/R Recurring Charges window, click .

    1. Type the Recurring Charge Code.
    2. Select or type the Customer Number.
    3. On the Invoice tab, type or select the Schedule Code and the Ship-To Location. To create or edit a schedule, click .
    4. To add an item, on the Detail tab, click Account/Taxes. In the Detail Accounts / Taxes window:
    5. Select or type the Item No.
    6. Type the Quantity.
    7. You can choose to change the Unit Price.
    8. To change the Detail Tax Class of an item, click the table cell and select the appropriate value in the Tax Classes window.
      • To apply an entity/use code to a line item, select Detail Tax Class as 4. 
      • To exempt a line item, select Detail Tax Class as 2.
    9. Click Add. If you want to add more items to this invoice entry, repeat this process. 
    10. Click Close.
  3. To add this recurring charge to the Schedule, click Add.

Create an invoice from an A/R Recurring Charge

  1. In the A/R Recurring Charges window, click Create Invoice.

  2. In the Create Invoice window:
    1. In the Invoice Date section, select the invoice date as Next Scheduled or Other if you want to add the date manually.
    2. In the Invoice Batch section:
      • To add the invoice in a new batch, select Create a New Batch
      • To add the invoice in an existing batch, select Add to an Existing Batch and select or type the batch number.
      • Click Process. The sales tax is calculated and the invoice is added to the A/R Recurring Charge batch based on the Invoice Batch selected in the Create Invoice window. 
      • A message displays the warnings, messages, and or errors generated during the sales tax calculation. Click Close.

    3. Click Close.

Create an invoice from a Reminder List

  1. Go to Sage 300 > Common Services > Scheduling > Reminder List.

  2. In the Reminder List window: 
    1. Select one of the options displayed in List.

    2. Select a Schedule, i.e., select a row from the table.
    3. To create or edit a schedule, click Schedule.
    4. Click Process. The sales tax is calculated and the invoice is added to the A/R Recurring Charge batch based on the Invoice Batch selected in the Create Invoice window. 
    5. A message displays the warnings, messages, and or errors generated during the sales tax calculation. Click Close.

  3. Click Close.

Create an invoice from a Create Recurring Charge batch

  1. Go to Sage 300 > Accounts Receivable > A/R Periodic Processing > Create Recurring Charge Batch.

  2. In the A/R Create Recurring Charge Batch window: 
    1. To set the date of processing the batch, select the Run Date
    2. To select the recurring charges that you want to process, select the appropriate option in Select By.
    3. To select the recurring charges, specify the range by selecting From and To.
    4. To specify the batch details for adding the invoices, select the Method.
    5. Click Process. The sales tax is calculated. 
    6. A message displays the warnings, messages, and or errors generated during the sales tax calculation. Click Close.

  3. Click Close.

  4. Go to Sage 300 > Accounts Receivable > A/R Transactions > Invoice Batch List
  5. In the A/R Invoice Batch List window:
    1. Select the batch.

    2. Click Post.
    3. In the Confirmation window, select Yes.

    4. If all the invoices are posted to the Admin Console successfully, a message showing the list of committed transactions is shown. Click Close.

    5. If some of the invoices in the batch are not posted to Admin Console successfully, the transaction with an appropriate error message is shown. Click Close. Revise the transactions and try posting the batch again. The batch remains open until all the transactions are successfully committed to the Admin Console.

Calculate taxes in batches using the AvaTax Batch Tax Calculation utility

To calculate tax on many transactionsHoverTT.png at the same time, follow these steps:

  1. In the Sage Sales Tax Powered by AvaTax folder, click the AvaTax Tax Calculation icon, and then double-click the AvaTax Batch Tax Calculation icon.

    Sage300_batch_ar_3.png

  2. In the AvaTax Batch Tax Calculation dialog box, next to Document: 
    1. To calculate taxes for a batch of Accounts Receivable, select AvaTax AR Batch.
    2. Type or search for the Batch Number that you want AvaTax to process as a batch.
    3. To delete all the documents in the batch before recalculating tax, click Clean/Delete documents from Avalara Dashboard for this Batch.
      Sage300_batch_ar_1.png
    4. To calculate taxes for a batch of Sales Orders, select AvaTax Order Entry or AvaTax Shipment. To use these options, ensure that the Order Entry Module is active.
    5. Next to From and To, select the range of transactions that you want AvaTax to process as a batch.
    6. To keep AvaTax from stopping when it finds an error as it calculates a batch of transactions, click During Batch Tax Calculation, continue processing regardless of errors.
      Sage300-2014_recalculatetool.png
  3. To calculate tax, click Get Tax.
  4. In the AvaTax Tax Calculation Summary dialog box, click Print or Close.
    • Tax calculation summary if you selected Document as AvaTax AR Batch
      Sage300_batch_ar_2.png
    • Tax calculation summary if you selected Document as AvaTax Order Entry or AvaTax Shipment
      Sage300-2014_recalctoolresults.png
  5. In the AvaTax Batch Tax Calculation dialog box, click Close.