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Change how AvaTax Update rounds the tax amount

This article applies to:Avalara AvaTax Update

The rounding level controls how AvaTax Update rounds the tax amount for a transaction. AvaTax Update can round tax amounts at the line-level or document-level. If you're not sure, leave line-level on.

Steps

  1. In AvaTax Update, go to Settings > All AvaTax Settings.
  2. On the Settings page, select Manage next to Advanced Company Settings.
    1. Turn line-level rounding on to:
      • Round the tax amount to two decimal places for each tax line
      • Discard the rounding difference
      • Add the tax amounts of each line together to get the total tax amount
      • Occasionally calculate the sum of each line as a penny less or more than with document rounding
    2. Turn line-level rounding off to use document-level rounding, which:
      • Calculates the tax amount for each line (without rounding), adds those amounts, and then rounds the total to two decimal places
      • Eliminates the occasional rounding inequality experienced with the line-level method by redistributing the rounded amounts
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