Verify Vendor-charged Tax and Assess Consumer Use Tax
This article applies to:Avalara AvaTax for Microsoft Dynamics NAV
AvaTax calculates consumer use tax on purchase invoices or purchase transactions. Some business applications require you to enable consumer use tax calculation in their configuration, but you don't have to do so in AvaTax. To add or import consumer use tax to transactions in AvaTax, see add or import consumer use tax.
Verify vendor-charged tax and assess consumer use tax on invoices
To calculate consumer use tax, follow these steps:
- In Microsoft Dynamics NAV, go to Home > Departments > Purchase > Order Processing > Lists and click New to create a Purchase Order or Purchase Invoice as applicable.
- To calculate the consumer use tax, click either Statistics (F7) or Post (F9) > Verify Tax. Messages are displayed based on the accrue amount suggested.
- The amount of tax charged to the vendor/seller is correct, i.e. the accrue amount is 0.
- The amount of tax charged to the vendor/seller is greater than the amount charged by AvaTax, i.e. the accrue amount is negative.
- The amount of tax charged to the vendor/seller is less than the amount charged by AvaTax, i.e. the accrue amount is more than 0.
- Click No if you don't want to accrue the self-assessed consumer use tax.
- Click Yes if you want to accrue the self-assessed consumer use tax. After you click Yes, the consumer use tax is calculated for this transaction and it is posted to AvaTax.
- The amount of tax charged to the vendor/seller is correct, i.e. the accrue amount is 0.