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Recalculate transactions for a different tax type

This article applies to:AvaTax

A common scenario where you need to edit transactions is when the tax type you've been collecting doesn't match what's on the form being filed. For instance, if you calculated transactions for sales tax, but the state requires only sales tax, you'd collect more tax than is necessary. 

Steps

  1. Change the tax type:
    1. In AvaTax, select Settings > Where You Collect Tax. 
    2. Find the state or region whose tax type you need to change, and select Details.
    3. Select the correct Tax Type from the drop-down menu, and then select Done. 
  2. Recalculate any transactions that used the wrong tax type:
    1. In AvaTax, go to Reports. Run a report for the date range and state where transactions would be affected by the incorrect tax type. Use the dates for when the original transactions occurred.
    2. In your business application, recalculate tax on the transactions in question. For instructions specific to your software, see Find your home page
      Tip icon It's also possible to recalculate transactions by importing them with ProcessCode 4. Recalculating directly from your business application is preferred, however, since this method is less prone to errors.
    3. If the recalculated transactions occurred in a previous filing period, file an amended return.
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