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Avalara Help Center

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

Calculate sales tax using the customer's ship-to address

To calculate tax using the customer's ship-to address, follow these steps:

  1. Create any of the above transaction types. Select Ship-to address.

  2. Click Ship-to lookup button search.png and select the appropriate row to select the address

  3. Click Save. This will calculate the tax for the transaction.

Calculate sales tax using latitude and longitude

To calculate tax using the latitude and longitude values, follow these steps:

  1. Go to Account Receivable module > Maintenance > Maintain Customers

  2. Select Customer.

  3. In the primary address, clear the address and add the Latitude and Longitude values. Click Save. Now whenever you create a a transaction for this customer, AvaTax will use the latitude and longitude that you specified to calculate the correct tax.

Calculate taxes for batches of documents

If you import a batch of documents such as sales orders, quotes, invoices, credit and debit memos, and returns into Sage 500, you may need to calculate sales or use tax for them. Here's how:

  1. In Sage 500 in the AvaTax folder, under Utilities, click Recalculation Utility.
  2. At the top left under Document Type, click a document type that you'd like to process.
  3. Under Range, select a range of dates for the documents you'd like to process.
  4. Click the Refresh Sage500_Refresh_icon.png icon.
  5. Click the AvaTax Sage500_AvaTax_icon.png icon.