After you activate AvaTax Update and set up your company profile, install and configure AvaTax Update 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
Alter these settings when your business needs change.
Download the AvaTax Update integration for Microsoft Dynamics 365 for Finance and Operations
If you didn't already, download your integration software to connect your accounting software to AvaTax Update.
- Go to Settings > Manage Account.
- After Avalara Account opens in a new tab, go to Integrations > Extractors & Connectors.
- Click the arrow next to the name of your company's accounting software to download the connector you need.
- In your Downloads folder, right-click the .zip file and extract the installation folder or file (.exe or .pdf or .msi).
Install the AvaTax Update integration for Microsoft Dynamics 365 for Finance and Operations
There are multiple ways to install AvaTax Update for Microsoft Dynamics 365 for Finance and Operations.
- Deployment using model files is the preferred installation method, and is typically used when deploying AvaTax Update to a development environment.
- Deployment using a deployable package (manually or using Lifecycle Services):
- Is rarely used for development environments, but is recommended for a multi-ISV solution environment.
- Is recommended when deploying AvaTax Update in staging or production environments, with the assumption that all UAT is done and there aren't any errors.
- Is recommended for deploying to a multi-ISV solution environment. We recommend testing AvaTax Update in a UAT/sandbox environment with your other ISV software before deploying to a production environment.
To install AvaTax Update for Microsoft Dynamics 365 for Finance and Operations using model files:
- To import the model file using the ModelUtil.exe utility:
- Run Command Prompt as an Admnistrator, and navigate to the Bin folder in the Packages directory (typically C:\Packages\Bin or C:\AosService\PackagesLocalDirectory\Bin).
- Execute the following:
ModelUtil.exe -import -metadatastorepath=[path of the metadata store where model should be imported] -file=[full path of the file to import]
ModelUtil.exe -import -metadatastorepath="C:\AOSService\PackagesLocalDirectory" -file="C:\Temp\AVA Model-Avalara, Inc..axmodel
- Build the imported models in Visual Studio.
- Synchronize the database in Visual Studio.
Set up AvaTax Update for Microsoft Dynamics 365 for Finance and Operations
To set up AvaTax Update for Microsoft Dynamics 365 for Finance and Operations:
- Log in to Microsoft Dynamics 365 for Finance and Operations and go to Avalara AvaTax > Setup > AvaTax Setup Assistant > Avalara account credentials.
- Fill in the following, and then click Verify Credentials:
- 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 Update.
Select Development if you have an AvaTax Update development account or Production if you have an AvaTax Update production account. Web service URL Select Development if you have an AvaTax Update development account or Production if you have an AvaTax Update production account.
- From Company code, select the company code you created when you activated your AvaTax Update account, and then click Next.
- To use AvaTax Update to calculate tax on transactions, on the Map Sales Tax Group page, complete the following, and then click Next:
- From Sales tax group, select AVATAX.
- Configure ledger posting groups:
- Click Ledger posting groups, choose the sales tax accounts to associate with your AVATAX ledger posting group, and then click Save and close the Ledger Posting Groups page.
- If you get a "The posting type must be Sales tax" error:
- Navigate to the Main Accounts page and ensure the posting type of the account you're selecting is correct.
- Save the setting, and return to Avalara AvaTax > Setup > AvaTax Setup Assistant.
- Verify credentials again to make the Next button active, and then click Next.
- To use AvaTax Update to calculate tax for existing customers, update their sales tax group:
- Click Tax Group Code Mass Update. The Tax Group pane opens.
- From Customer/Vendor, select Customer.
- From Sales tax group, select AVATAX.
- Click the Range field, and then click Select. The Inquiry page opens.
- On the Range tab, click the down arrow under Criteria, select the first customer in the range, and then type 2 periods (..).
- Click the down arrow again, select the last customer in the range, and then click OK.
- Close the Tax Group pane.
- On the Enable Address Validation page, select the countries for which you want address validation enabled (available for the US and Canada), and then click Next. Accurate tax calculation starts with accurate addresses.
- Click Test Calculating Tax.
- If you receive an error message about your address, update the business address for your legal entity.
- Click Finish, and then refresh any workstation that was open while running the Setup Assistant to ensure it's updated with the most current AvaTax Update configuration settings.
AvaTax Update for Microsoft Dynamics 365 for Finance and Operations works with default settings. Make changes to suit your business needs.