Install and Configure Avalara AvaTax for Salesforce Billing
After you activate AvaTax and set up your company profile, install and configure AvaTax for your business application. 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.
Before you install
- You must have all the following installed before installing AvaTax for Salesforce Billing:
- Salesforce CPQ (must be installed before Salesforce Billing)
- Salesforce Billing
- If your organization has Salesforce CPQ installed, make sure it's Salesforce CPQ 1.5 or later.
Install the AvaTax integration for Salesforce Billing
Install the Avalara AvaTax Salesforce Mapper and the Avalara AvaTax for Salesforce Billing packages to enable tax calculation and address validation in Salesforce Billing.
To connect Salesforce Billing to AvaTax:
- In Avalara, go to Settings > Integrations > Manage.
- Select See connector versions for the appropriate Avalara AvaTax Salesforce Mapper version (sandbox or production), and then select the most recent version.
- On the Package Install page, select Install for All Users, and then click Install.
- To complete the installation, click Done.
- Ensure the user has full access permissions for Avalara custom objects (UDLs and UserMessages).
- Repeat steps 1-4 to install the appropriate version (sandbox or production) of AvaTax for Salesforce Billing.
Configure
In addition to adding controls to pages in Salesforce Billing for quicker access to AvaTax actions, you must configure certain objects specifically to allow AvaTax to properly calculate taxes and validate addresses. If you use a custom field to record information included in any of the configurations in this section, use the XML on the tax integration page of AvaTax Salesforce Mapper to complete the configuration.
Find system integrator documents for each version on the release notes for the version.
Customize Salesforce Billing pages
- On each indicated page, click Edit Layout, click Fields, Buttons, or Related Lists and then drag the appropriate field, button, or related list onto the page:
Page Field Button Related list Accounts - Exemption
- Entity/Use Code
- Business Identification Number
- Is Seller Importer of Record
Validate Addresses Legal Entities Validate Addresses Contact Validate Addresses Order Get TaxBreakup Order Line Item Order Line Tax Breakups Invoice Get TaxBreakup Invoice Line Item Invoice Line Tax Breakups Debit Note Get TaxBreakup Debit Note Line Item Debit Note Line Tax Breakups Credit Note Get TaxBreakup Credit Note Line Item Credit Note Line Tax Breakups
Configure the Billing Config object
- In Salesforce Billing, go to Setup > Build > Develop > Custom Settings, and then, next to Billing Config, click Manage.
- If a configuration named AVALARA AVATAX doesn't exist, create it:
- Click New.
- Fill in the following values, and then click Save:
Field Value Name AVALARA_AVATAX Category Tax String Value Avalara AvaTax
Configure the Tax Config object
- In Salesforce Billing, go to Setup > Build > Develop > Custom Settings, and then, next to Tax Config, click Manage.
- Click New, fill in the following values, and then click Save:
Field Value Name Avalara AvaTax Class Name AVA_BLNG.TaxCalculationAPI
Configure Connector for Salesforce Billing
While you can go to each object's tab to configure the objects as needed to use AvaTax with Salesforce Billing, use the AvaTax for Salesforce Billing app to configure many objects in one place. The objects you create in the app are added to Salesforce Billing, and objects in Salesforce Billing display in the app.
- Make sure you're in Lightning experience in Salesforce Billing.
- In App Launcher, search for and select AvaTax for Salesforce Billing.
The AvaTax for Salesforce Billing app opens, offering you consolidated configuration for Connector for Salesforce Billing. - On the Tax Integrations tab, select New, fill out the following, and then select Save:
Field Action Tax Integration Name Enter a unique, easy to identify name for the tax integration. Active Select this option to make the tax treatment visible and available to use.
If you clear this option in the future, any existing objects with a lookup relationship to this treatment won't be changed.
Default Select to set this tax integration as the default. Tax Engine Select Avalara AvaTax.
If you don't see this option, add it to the list:
- On the Quick Access menu, select View Fields.
- Select Tax Engine, select View Tax Engine Value Set, and then select New in the Values related list.
- Enter Avalara AvaTax and select Save.
Customer Code - To use the account name as the customer code, select Name.
- To use the account ID as the customer code, select Id.
Doc Code - To use the invoice name as the doc code, select Name.
- To use the invoice ID as the doc code, select Id.
Account Number Enter your AvaTax account number. 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 Avalara at Settings > Account ID. License Key Enter your AvaTax 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 Avalara. Environment - Select Sandbox to test AvaTax using a sandbox account.
- Select Production to send transaction to an AvaTax production account.
Address Validation Select this option to allow address validation for addresses in the US and Canada. Save transactions to AvaTax - To save transactions to AvaTax, select this option. (Recommended)
- To show estimated tax but not save transactions to AvaTax, clear this option. We recommend you only clear this option when testing your integration.
-
On the Tax Integrations tab, click the down arrow under Action for the tax integration you just created, and then select Test Connection to confirm you can connect to AvaTax.
-
On the Legal Entities tab, select New, fill out the following, and then select Save:
Field Action Legal Entity Name Enter the company name you created in Avalara for the company. Active Select this option to make the legal entity visible and available to use. Address fields (Line 1, City, Region, Postal Code, Country) Enter the ship-from (origin) address. -
On the Tax Rules tab, select New, fill out the following, and then select Save:
Field Action Tax Rule Name Enter a unique, easy to identify name for the rule. Active Select this option to make the tax rule visible and available to use.
If you clear this option in the future, any existing objects with a lookup relationship to this rule won't be changed.
Taxable (Yes/No) - To send the record to AvaTax to calculate tax, select Yes. Sending all records, including those for non-taxable lines, helps avoid tax compliance issues, especially for SST customers. (Recommended)
- To not send the record to AvaTax and to set tax to zero, select No. We don't recommend using this to make invoice lines non-taxable. Instead, for the relevant Tax Treatment, in select NT for Tax Code.
-
On the Tax Treatments tab, select New, fill out the following, and then select Save:
Field Action Name Enter a unique, easy to identify name for the tax treatment. Active Select this option to make the tax treatment visible and available to use.
If you clear this option in the future, any existing objects with a lookup relationship to this treatment won't be changed.
Tax Code Enter the desired tax code previously created in AvaTax. This code determines taxability of invoice lines to which this tax treatment is mapped. Tax Integration Select the tax integration you configured previously with AvaTax login details. Tax Legal Entity Select the tax legal entity you configured previously. Tax Rule Select the tax rule you configured previously for AvaTax. -
On the Revenue Recognition Rules tab, select New, fill out the following, and then select Save:
Field Action Name Enter a unique, easy to identify name for the revenue recognition rule. Active Select this option to make the revenue recognition rule visible and available to use. Create Revenue Schedule Select whether or not to create a revenue schedule for this revenue recognition rule. -
On the Billing Rules tab, select New, fill out the following, and then select Save:
Field Action Name Enter a unique, easy to identify name for the billing rule. Active Select this option to make the billing rule visible and available to use. Initial Billing Trigger Select which event triggers billing. Partial Period Treatment Select how Salesforce Billing creates invoice lines for products that bill in advance of the order start date. - To create a separate line for the partial period, select Separate.
- To create one line that combines the partial period with the next full period, select Combine.
Generate Invoice Select whether or not Salesforce Billing creates an invoice line for the product.
Restrict editing tax integrations
Configure an AvaTax GL rule
- In Salesforce Billing, go to GL Rules, and then click New.
- Fill out the following, and then click Save:
Field Action GL Rule Name Enter a unique, easy to identify, name for the rule Active Select this option to make the tax rule visible and available to use.
If you clear this option in the future, any existing objects with a lookup relationship to this rule won't be changed.
Configure an AvaTax GL treatment
- In Salesforce Billing, go to GL Treatments, and then click New.
- Fill out the following, and then click Save:
Field Action Name Enter a unique, easy to identify, name for the GL treatment. Active Select this option to make the tax treatment visible and available to use.
If you clear this option in the future, any existing objects with a lookup relationship to this treatment won't be changed.
GL Legal Entity Select the GL legal entity to use for saving transactions to AvaTax. Tax Rule Select the GL rule that's configured for AvaTax. Credit GL Account Select the tax payable account to record credit tax transactions to. Debit GL Account Select the accounts receivable account to record debit transactions to.
- Fill out the following, and then click Save:
Set the tax calculation address for invoices
- In Salesforce Billing, go to Setup > Installed Packages, and then, next to Salesforce Billing, click Configure.
- On the General tab, from the Tax calculation is based on list, select the address AvaTax uses as the ship-to (destination) address when calculating tax on invoices.
Set product tax rules
- In Salesforce Billing, go to Product, select a product, and then click Edit.
- In the Salesforce Billing Configuration section, select the AvaTax rule you created, and then click Save.
- Repeat this for each active product.
AvaTax custom fields and integration points
The AvaTax for Salesforce Billing integration package includes the following custom fields:
| Label | API name | Data type | Description |
|---|---|---|---|
| AvaTax Account Number | AvaTaxAccountNumber__c | Text(255) | Account number to connect to AvaTax account |
| AvaTax License Key | AvaTaxLicenseKey__c | Text(255) | License key to connect to AvaTax account |
| Customer Code | CustomerCode__c | Picklist | Select whether to send the invoice number or the invoice ID as the doc code |
| Doc Code | DocCode__c | Picklist | Select whether to send the account name or the account ID as the customer code |
| Sandbox | TestMode__c | Checkbox | The default account type is production. If selected, account type is changed from production to sandbox. |
| Save transactions to AvaTax | Save_transactions_to_AvaTax__c | Checkbox | If selected, transactions are posted to AvaTax |
| Validate Address | Validate_Address__c | Checkbox | If selected, address validation feature is enabled |
AvaTax integrates with Salesforce Billing at the following points:
| Object/Page | Address validation | Test connection | Exemption | Calculate tax | Void tax | Commit tax | Tax date override | Tax code mapping | Legal entity |
|---|---|---|---|---|---|---|---|---|---|
| Account | Yes | Yes | |||||||
| Contact | Yes | ||||||||
| Legal Entity | Yes | ||||||||
| Tax Integration | Yes | ||||||||
| CPQ Order | Automatic | Yes | |||||||
| Invoice | Automatic | Yes | Yes | Yes | |||||
| Invoice Line | Yes | Yes | |||||||
| Credit Note | Manual | Yes | Yes | Yes | |||||
| Credit Note Line | Yes | Yes | |||||||
| Debit Note | Manual | Yes | Yes | Yes | |||||
| Debit Note Line | Yes | Yes | |||||||
| Refund | No | No | No | No | No | No |