Skip to main content
Avalara Help Center

Calculate Sales Tax

This article applies to:Avalara AvaTax for Salesforce

AvaTax for Salesforce can calculate sales tax on a wide variety of transaction types.

Calculate sales tax

After you set up and configure AvaTax for Salesforce and set customer taxability, AvaTax for Salesforce calculates tax tax on the following transaction types:

  • Opportunities
  • Quotes
  • Orders

Simply create one of those transaction types and click Save.  Before you start calculating tax, ensure that the Avalara settings has the following configuration:

  • The Enable Tax Calculation option is enabled
  • The Use Billing Address for Tax Calc option is enabled if you want to use the Billing address for tax calculation. By default, AvaTax for Salesforce uses the customer's ship-to address to calculate the correct sales tax.
  • If you've enabled the Do you want Automatic Tax Calculation option, when you save/refresh a transaction, tax is calculated automatically. If invalid information is included with the transaction, a message is displayed in Avalara Status

To start calculating tax, follow these steps:

  1. Go to Opportunities and click New to create an opportunity.
  2. Click Add a Product to add a new product. If the number of products is more than 300, the sales tax details for the product aren't displayed on the product line item.
  3. Click Calculate Sales Tax to calculate sales tax. The sales tax amount is listed in the Sales Tax field.

    SF1 Calculate salesTax.png

View transactions in the Admin Console

TransactionsHoverTT.png are stored in the Admin Console on the transactions tab for any company for which you calculated sales tax in AvaTax for Salesforce. In the example below, you can see the details of the invoice shown above, complete with corrected address. For more information, read reviewing transactions.

Transactions-TaxAmount.png

Calculate sales tax using tax override

The tax override feature lets you manually alter the tax amount on a specific transaction. This feature allows you to change the tax amount to something other than the value that was previously calculated. To use the tax override feature, ensure that the Allow Tax Override option is enabled in Avalara settings page. 

To override tax calculation, follow these steps:

  1. Go to Opportunities and click New to create an opportunity.
  2. Click Add a Product to add a new product.
  3. Click Edit link to edit the line item details and manually update the Sales Tax Amount. Click the Save button. To post this transaction to the Admin Console, click the Calculate Sales Tax button. Even though tax is calculated using AvaTax, the calculated tax amount is overridden and the manually updated tax amount is used instead.

SF5 Tax Override1.png

  • The Admin Console displays the manually-added tax amount.

Commit transactions

You can commit transactionsHoverTT.png stored in the Admin Console. After committing a transaction, the transaction is posted in AvaTax and the status changes to committed. You cannot update this transaction in Salesforce. 

Before you commit a transaction, ensure that the Avalara settings has the following configuration:

  • The Enable Tax Calculation option is enabled
  • The Enable Commits option is enabled if you want to commit a transaction 

To commit a transaction, follow these steps:

  1. Go to Opportunities and click New to create an opportunity.
  2. Click Add a Product to add a new product and then calculate sales tax.
  3. Click Finalize Opportunity button to post the opportunity to AvaTax. When you post, 
    • Avalara Status changes from Temporary to Committed  
    • Tax Now Status changes from Sales Tax Current to Finalized

    SF3 Finalize opportunity.png

  • The transaction in the Admin Console changes to committed.

SF4 Admin console commited.png