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Install and Configure Avalara AvaTax for Sage 50

This article applies to:Avalara AvaTax for Sage 50

After you activate AvaTax and set up your company profile, install and configure AvaTax for your accounting software. During configuration, customize your setup to fit your unique business needs for things like:

  • Tax calculation settings for various tax types
  • Exemption settings if you have exempt customers
  • Product taxability settings

Alter these settings when your business needs change.

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

Download

Download your integration

To connect your accounting software to AvaTax, download your integration software. 

  1. In AvaTax, 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 AvaTax.
  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). 

Install

  1. Right-click the downloaded installation file, and then click Run as administrator.
  2. In the Welcome to the InstallShield Wizard for AvaTax for Sage 50 dialog box, click Next.
  3. In the Ready to Install the Program dialog box, click Install.
  4. In the InstallShield Wizard Completed dialog box, click Finish.

Configure

  1. Open AvaTax for Sage 50.
  2. In the AvaTax for Sage 50 dialog box, click Configuration.
  3. Click the Company for which you want to calculate sales tax, and then click OK.
  4. In the AvaTax Configuration dialog box, add the required information on the following tabs, and then click OK:
    • The Peachtree tab:
      Field Action
      Select a Company Click to select
      Company Code  Type the code you created in AvaTax for the company that you select

       

    • The Connection tab:
      Field Action
      URL Enter https://admin-development.avalara.net if you have an AvaTax development account or https://admin-avatax.avalara.net if you have an AvaTax production account
      • Account
      • Key
      Type the account number and license key you received in an email from Avalara
      • Username
      • Password 
      Use the same ones you use to log into your AvaTax account
      Test Connection Click to test the credentials you entered. If the connection succeeds, data automatically populates the fields below it

       

     

    • The Tax Codes tab:
      Field Action
      Ship Method To set the Freight Tax Code for a ship method, select the row and add/update the tax code
      Item ID To set the Tax Code for an item, select the item and add/update the tax code
      Update Tax Code List Click to update the tax code list
      Synchronize with Peachtree Click to synchronize the tax code list with Sage 50

       

    • The Entity/Use Codes tab:

      For more information regarding the available list of entity/use codesHoverTT.png, see Exemption Reason Matrices for US and Canada.

      Field Action
      Customer ID To set the Entity/Use Code for a customer, select the row and add or update the entity/use code
      Synchronize with Peachtree Click to synchronize the tax code list with Sage 50

       

    • The Address ValidationHoverTT.png tab:
      Field Action
      Return results in uppercase Optional: Select to return validated address results in uppercase.
      • Company Address Validation
      • Customer Address Validation
      • Vendor Address Validation

      Click, enter the address, and then:

      1. Click Validate to populate the validated address in the right panel.
      2. Click Save to Peachtree to update the address in Sage 50.

       

    • Optional: The Options tab:
      Field Action
      AvaTax Request Timeout Type to set the request timeout duration in seconds. We recommend you change this setting only when directed by  Avalara Support.
      Disable warning messages Select to disable AvaTax warning messages.

     

    • Optional: Use the About Avalara tab to view the integration version and Avalara Support details.
  5. Close AvaTax for Sage 50 to finalize your changes.

Create a vendor

  1. In Sage 50, on the Maintain menu, click Vendors, and then fill in the following:
    Field Action
    Vendor ID Select or type AVALARA
    Name Enter Avalara
    Expense Account Select the account to use to track your sales-tax liabilities
  2. On the File menu, click Save, and then click Close.

Create a sales tax item

  1. In Sage 50, on the Maintain menu, click Sales Taxes.
  2. In the Sales Tax dialog box, click Set Up a New Sales Tax, and then click Next.
  3. In the Set Up New Sales Tax dialog box, do the following, and then click Next:
    • In the What is the total rate that you will charge? field, type 0.00000%. (AvaTax will determine the correct rate for calculating sales tax.)
    • Leave How many individual rates make up this total rate? at its default setting: 1
  4. In the Add Sales Tax Agency dialog box, fill in the following, and then click Next:
    Field Action
    Sales tax agency ID Select or type AVALARA
    Sales tax agency name Type AvaTax
    Which vendor do you send the taxes you collect to? Select or type AVALARA
    Rate Type 0.00000% (AvaTax will determine the correct rates for calculating sales tax)
    Select an account to track sales taxes Select the account to use to track sales taxes
  5. In the Sales Tax Entered dialog box, fill in the following, and then click Finish:
    Field Action
    Sales tax ID Type AVATAX
    Sales tax name Type AVATAX
    Do you charge sales tax on freight? Select No
  6. In the new Sales Tax dialog box, click Cancel.