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Create Supplier Invoice for Undercharge Scenario

This article applies to:Connector for Workday

What is an undercharge scenario?

  • If the vendor-billed tax amount is lesser than the AvaTax-calculated tax amount, it's an undercharge scenario.
  • Example: If the AvaTax-calculate tax is 9$ and the vendor-paid tax is 5$, this is a case of undercharge scenario and this invoice is posted to AvaTax.
  • In case of an undercharge scenario, the vendor-billed tax amount is sent to AvaTax and is visible as tax override.

Perform tax calculation on the supplier invoice


  1. In the search bar type Create Supplier Invoice and then select the option from the pop-up list.
  2. Enter the mandatory details on the supplier invoice, such as: Company, Supplier, Default Tax Option, Ship To Address, purchase Item and Cost-Center / Worktags.

    Imp: You must select Calculate Tax Due to Supplier option in the Default Tax Option field.
  3. Select the vendor-paid line item which is mapped on the Avalara Configuration page under Purchase item to be used for entering the vendor-billed tax amount attribute, and enter vendor paid tax into extended amount. 
  4. Click Submit. The You have submitted page is displayed.
  5. Click the drop-down arrow next to Details and Process, and then select the submitted invoice.
  6. Refresh the browser to change the Status from In Progress to Approved.
  7. Browse down the invoice and select Tax to view the tax break-up.
  8. If the AvaTax-calculated tax is greater than the vendor-paid tax, this is an undercharge scenario and this invoice tax break-up is displayed as the following example:


    The Tax tab displays the vendor-paid tax under the Avalara_TaxRate_US_UnderAndOverCharge: Avalara_TaxAuthority_US tax rate. The jurisdiction-wise break-up should get displayed on other tax rates.
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