As long as you enable tax calculation and select AvaTax Update as the tax calculation method in your accounting software, AvaTax Update automatically calculates a sales or use tax rate on a variety of transaction types according to the taxability rules of those products (exempt customers aren't charged sales tax).
Estimate sales tax on an order in Salesforce Billing
Once you select a Legal Entity on an order and save, the order updates with estimated tax. You may need to refresh the page a few times for the status to move from "Queued" to "Completed."
Calculate sales tax on a credit or debit note in Salesforce Billing
To calculate tax on a credit or debit note in Salesforce Billing:
- In Salesforce Billing, click Credit or Debit Notes, and then click New.
- On the credit/debit note page, select the account you want to process a credit/debit note for, and then click Save.
- Click New Credit/Debit Line Note.
- When filling out the line information, check Calculate Tax.
- Click Save.
- Click Estimate Tax to calculate tax on the credit/debit note.
- The credit/debit is posted to AvaTax as an uncommitted document.
- Click Apply Tax to apply the calculated tax.
- The status is changed to Posted in Salesforce Billing.
- The credit/debit is posted to AvaTax as a committed document.
Uncommitted and committed transactions in AvaTax for Salesforce Billing
View the uncommitted tax amount on the Invoice page once you save an invoice.
The order shows in AvaTax as "committed" once you post the invoice in Salesforce Billing.
Void tax on an invoice in AvaTax for Salesforce Billing
To void an invoice so it shows as canceled in Salesforce Billing and Voided in AvaTax, use the "Cancel and Rebill" option.
Whether you cancel and rebill or delete an invoice in Salesforce Billing, the transaction displays as "voided" in AvaTax.