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Calculate sales tax in Microsoft Dynamics GP

This article applies to:AvaTax for Microsoft Dynamics GP

As long as you enable tax calculation and select AvaTax as the tax calculation method in your business application, AvaTax 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).

Optional fields when calculating sales tax

Use these optional fields in the Sales Transaction Entry dialog box in Microsoft Dynamics GP to customize how AvaTax calculates taxes.

  • Customer PO Number: On invoices and returns, enter a number here to trigger single-use exemption certificates you've configured.

  • Trade Discount: AvaTax allocates this discount to each line item in tax calculations.

  • Freight: AvaTax associates this item with the tax code/shipping code or default tax code you set in the AvaTax Configuration dialog box.

  • Miscellaneous: AvaTax recognizes this as a line item and can apply tax codes to it.

Calculate sales tax using a tax override

Manually change the tax amount on a specific transaction with a tax override by either changing the transaction date or the transaction tax amount. The tax date override feature is available for invoices, credit memos, and returns.

To override tax calculation:

  1. Make sure:
    1. The following are selected in the AvaTax settings for Microsoft Dynamics GP:
      • Enable Item Tax Option Override - Sales Transaction Entry
      • Tax Amount Adjustment functionality via Receivables Transaction Entry
    2. At Additional > AvaTax RM Override > Avalara AvaTax Override Line Details, Allow Tax adjustment option is selected.
  2. Go to Transactions > Sales, and then click Transaction Entry.
  3. Select the transaction for which you want to override the sales tax calculation. The Transaction Entry window opens.
  4. To override tax by changing the transaction date:
    1. Click Additional, and then click AvaTax RM Override.
    2. In the Avalara AvaTax Override Line Details window, type the date to use for the transaction, and then click Save.
  5. To override tax by changing the transaction tax amount:
    1. Click the arrow next to Tax.
    2. In the Receivable Tax Entry window, in Tax Percent / Amount, type a value other than the value that was previously calculated, and then click Save
  6. To override the tax date at the line level:
    1. View line details, click Additional, and then click AvaTax Override Line Details.
    2. Enter or select the date to use for the transaction, and then click Save.

Recalculate multiple sales orders, accounts receivable records, or invoices at once

To recalculate sales tax on multiple sales orders, accounts receivable records, or invoices at once:

  1. Go to Tools > Utilities > Avalara AvaTax > Update, and then click SOP Tax Update Utility.
  2. Next to Document Type, select SOP (for sales order processing), AR (for accounts receivable), or Invoice.
  3. Next to Batch ID From and Batch ID To, click the Search icon, select a range of batch IDs to update, and then click Select.
  4. To limit recalculation only to batches in your selection with select document dates, next to Document Date From and Document Date To, click the Calendar icon and select a date range.
  5. Under Transaction Type, select the types of transactions to update in the batches, click Update, and then click Yes.
  6. In the Report Destination dialog box, under Report Type, select Screen, and then click OK.
  7. In the Results report, review the records to make sure they're the ones you wanted to update.
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