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View consumer use tax on vendor invoices in Microsoft Dynamics 365 Finance and Operations

Calculate and verify use tax if a vendor hasn’t charged any tax.

Before you begin

Calculate consumer use tax for a vendor invoice

  • After creating an invoice, go to ... > Avalara > Use Tax and click Use tax Assessment. Messages display showing the difference between the tax the vendor charged and the tax AvaTax calculated. When posting a transaction:
    • If auto accrue undercharged tax is set to No in your consumer use tax settings, messages display showing the difference between the tax the vendor charged and the tax AvaTax calculated. If the vendor charged less than the amount AvaTax calculated, and the amount is not within the threshold amount indicated in your settings, choose whether to accrue that amount.
      • If you don't want to accrue consumer use tax for the invoice, select No.
      • If you want to accrue consumer use tax for the invoice, select Yes. The consumer use tax calculates for the transaction and posts to AvaTax and the associated general ledger accounts.
    • If auto accrue undercharged tax is set to Yes, the amount outside the threshold indicated in your settings automatically accrues and posts to your general ledger.