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Install and Configure Sage Sales Tax for Sage 500 ERP Powered by Avalara AvaTax

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

Update these settings when your business needs change.

Download AvaTax for your accounting software

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, .pdf, or .msi). 

Install

To use AvaTax for Sage 500, you must install both a server element and a workstation element. We recommend that your solution provider merge these elements with any add-ons or enhancements to Sage 500 to make sure they work properly.

You must install AvaTax for Sage 500 on your Sage 500 server and on the workstation of every Sage 500 user who needs to use AvaTax.

Before you install, make sure all Sage 500 users are logged out of Sage 500 and that Sage 500 is closed.

Install on your server

To install AvaTax for Sage 500 on your server:

  1. Extract the contents of the .zip file you downloaded from AvaTax.
  2. On the Sage 500 server, double-click the Sage 500 integration .exe file, and then click Next.
  3. Read and accept the AvaTax License Agreement, and then click Next.
  4. Select the appropriate path to your Sage 500 runtime directory, and then click Install.
  5. In the Database Server dialog box:
    Field Action
    Database Server Select your Sage 500 server.
    Connect using Select Server authentication using the Login ID and password below.
    • Login ID
    • Password

    Enter the appropriate database name, and then click Next to start the installation.

  6. When the installation is complete, click Finish.

Install on your workstations

To install AvaTax for Sage 500 on each workstation:

  1. Extract the contents of the .zip file you downloaded from AvaTax, and copy the contents to each workstation.
  2. Double-click the Sage 500 integration .exe file, and then click Next.
  3. Read and accept the AvaTax License Agreement, and then click Next.
  4. Select the appropriate path to your Sage 500 runtime directory, and then click Install.
  5. When the installation is complete, click Finish.

Configure

The more you personalize the configuration of Sage 500, the better your experience may be. It may also help your tax calculations be more correct.

Configure AvaTax with the Setup Assistant

To configure AvaTax for Sage 500:

  1. In the Avalara Setup Assistant dialog box, next to Enter your Account Credentials and Company Code, click > .
  2. On the Avalara Account Credentials page, click Edit Settings, fill in the following information, and then click Ok:
    Field Action
    • Account Number
    • License Key
    Use the information provided in an email from Avalara (sent to the email account you used to activate your account). It must match what's saved in AvaTax.
    Web Service

    Use the information provided in an email from Avalara (sent to the email account you used to activate your account). It's the same credentials you use to log in to AvaTax.

    Click Test Connection, and then follow one of these steps:

    • If you see the message "Configuration validated successfully," click OK and move to the next field.
    • If you see the message "Connection test failed," reenter your account information, and then click Test Connection again.
    Company Code/Company Name
    • Select the company code that you created when you activated your AvaTax account.
    • To create a new company, click Create Company.
  3. In the Avalara Setup Assistant dialog box, next to Map Tax Schedule to AvaTax, click the > button, fill in the following, and then click Ok:
    Field Action
    Tax Schedule ID Select AVATAX
    Set Tax Schedule ID Utility Use the utility to assign the tax schedule ID to many customer records in Sage 500 at a time.
  4. In the Avalara Setup Assistant dialog box, next to Enable Address Validation for USA and Canada, click the > button, fill in the following, and then click Ok:
    Field Action
    Optional: Enable Address Validation If you disable address validation, AvaTax uses the customer's ship-to address to calculate the correct sales tax. Sales tax might be calculated incorrectly if this option is disabled.
    Map Select the countries in which you want to enable address validation. (To enable address validation in the United States, select both US and USA.)
  5. In the Avalara Setup Assistant dialog box, next to Test Calculating Tax, click >.
    • If you see "Great! You are connected to AvaTax", go to the next step.
    • If you see any other message, follow steps 1-3 again.
  6. To set up your tax profile using the AvaTax tax profile assistant, in the Avalara Setup Assistant dialog box, click Click here to launch the AvaTax Tax Profile Assistant.

Configure AvaTax for your accounting software

To configure AvaTax for Sage 500:

  • Go to AvaTax > Maintenance > Setup AvaTax Options,  complete the fields on the following tabs, and then click OK:
    • The SetUp tab:
      Field Action
      • Account Number
      • License Key
      • User Name
      • Password
      Use the information provided in an email from Avalara (sent to the email account you used to activate your account). It must match what's saved in AvaTax.
      URL Enter https://development.avalara.net if you have an AvaTax development account or https://avatax.avalara.net if you have an AvaTax production account.
      Company Code/Company Name Select the company code that you created when you activated your AvaTax account.
    • The General tab:
      Field Action
      Options
      • Optional: Display Warning/Error(s): If not selected, you see only error messages.
      • Optional: Enable Tax Class Mapping: Select to map item classes to Avalara tax codes.
      • Optional: Enable Tax Code Mapping: Enable to map items to Avalara tax codes to account for varying taxability of products and services.
      • Optional: Enable User-Defined 1 and 2: Select the type of data you want to send to AvaTax.
      • Optional: Enable Entity/Use Code: Enable to map entity/use codes for your customer addresses to flag them as exempt from sales tax.
      • Optional: Send Item GL Account: When selected, the general ledger account associated with the item is sent to AvaTax along with the item code when used in a transaction.
      Adapter Options
      • Optional: Enable Logging: This function is primarily used for troubleshooting issues. If you choose to enable logging, all success, warning, and error messages are included in the log. Only enable logging if you've been instructed to do so by Avalara Support, because it can significantly slow down your service.
      • Optional: TimeOut: Enter the length of time to wait for AvaTax to respond to calculation requests. We recommend that you don't adjust this setting.
      • Optional: Retry: The default is 1. 
      • Optional: Delay Between Retry (in milliseconds): The default is 3000 seconds. 
      Default Tax Code(s)
      • Optional: Shipping Charges: The default shipping code when you enter a shipping charge on a sales document.
      • Optional: Restocking Fees: The default tax code for the fees charged for restocking items. 
    • The Tax Calculation tab:
      Field Action
      Optional: Disable Tax Calculation If you choose to disable tax calculation, your accounting software no longer uses AvaTax to calculate tax on transactions.
      Optional: Always Check Address before Tax Calculation Select to validate addresses before AvaTax calculates sales tax. We recommend that you don't select this because it may lead to extra charges. Instead, use batch address validation to validate all addresses at once.
      • Resume Tax Calculation on Address Validation Failure: Select to perform tax calculation when you press the keyboard shortcut that you select in the Keyboard Shortcut menu.
      Default Sales Tax Schedule Select AVATAX.
    • The Address Validation tab:
      Field Action
      Optional: General Options
      • Disable Address Validation: If you disable address validation, AvaTax uses the customer's ship-to address to calculate the correct sales tax. Sales tax might be calculated incorrectly if this option is disabled.
      • Return results in Upper Case: Select to save all address validation results in uppercase format.
      Perform Address Validation based on the countries selected Select the countries that you'd like to include in address validation using AvaTax.
      Optional: Batch Processing Options
      • During Batch Address Validation, continue processing regardless of errors - Select to ignore any errors during batch processing.
      • Scan, Add and Report Validated Addresses during Batch Address Validation:
        • Manually - Select to manually update records that you validated.
        • Automatically - Select to let AvaTax automatically update records as they're validated; records not validated are displayed in a report after the batch validation has finished.
    • Optional: The About Avalara tab contains technical information about your connector/integration and your AvaTax account.