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Avalara Help Center

Calculate Sales Tax

This article applies to:Avalara AvaTax for Salesforce

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

  • Opportunities
  • Quotes
  • Orders

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 use the tax override feature, ensure that the Allow Tax Override option is enabled. 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.

Calculate sales tax for Opportunity

  1. Go to Opportunities and click New.
  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.

  4. To view transactionsHoverTT.png stored in the Admin Console, go to the Transactions tab for any company for which you calculated sales tax in AvaTax for Salesforce. For more information, read reviewing transactions.
  5. To commit transactionsHoverTT.png stored in the Admin Console from Salesforce, 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
  6. To override tax calculation, 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.

Calculate sales tax for Order / Quote

  1. Create a new transaction type:
    • To create an order, go to Orders and click New.
    • To create a quote, go to Quotes and click New.
  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.

  4. To view transactionsHoverTT.png stored in the Admin Console, go to the Transactions tab for any company for which you calculated sales tax in AvaTax for Salesforce. For more information, read reviewing transactions.
  5. To commit transactionsHoverTT.png stored in the Admin Console from Salesforce, 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
  6. To override tax calculation, 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.