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Set up AvaTax Connector for Salesforce CPQ+ for your tax calculation needs

We’ve outlined the steps for you to connect and manage AvaTax Connector for Salesforce CPQ+ to get started.  

Before you begin 

  • You have purchased AvaTax for Salesforce CPQ+. To purchase, select Get integration on the Salesforce CPQ+ page.

Step 1: Install AvaTax Connector for Salesforce CPQ+

Download and install Connector for Salesforce CPQ+. Start by installing AvaTax for Salesforce Mapper. Then install the integration software.

Steps

  1. Download and install AvaTax for Salesforce Mapper.
    1. In Avalara, go to Settings > Integrations.
    2. Select See Connector Versions.
    3. Download the test or production version of the mapper, depending on which one you want to install.

      A warning icon

      If you're upgrading from Salesforce CPQ+ 1.0 or 2.0 to Salesforce CPQ+ 3.0 or later, do the following:

      1. In Salesforce CPQ+, go to Setup, search for "static resources," and then select the link to the Static Resources page.
      2. Search for the CPQConfig.xml file, save a backup copy of the file to a local drive, and then delete the file from the Static Resources section.
    4. In Salesforce CPQ+, navigate to the Package Install page, select Install for All Users, and then select Install.
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    5. Once the installation is complete, select Done.
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    6. Ensure the appropriate user roles in Salesforce CPQ+ have full access permissions for Avalara custom objects (UDLs and UserMessages).
  2. Install the integration software.
    1. In Avalara, go to Settings > Integrations.
    2. Select See Connector Versions.
    3. Download the test or production version of the integration software, depending on which one you want to install.
    4. In Salesforce CPQ+, navigate to the Package Install page, select Install for All Users, and select Install.
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    5. Once the installation is complete, select Done.
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      A warning icon

      If you're upgrading from Connector for Salesforce CPQ+ 1.0 or 2.0 to Connector for Salesforce CPQ+ 3.0 or later and you made customizations that you want to save, do the following:

      1. Compare the local backup you saved of the CPQConfig.xml file with the new version of the file that just installed.
      2. Copy customizations from the backup to the new file.
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      If you're updating from any previous version of the integration software, do the following:

      1. Go to the Installed Packages page, select Configure next to the AvaTax for Salesforce CPQ+ package.
        The AvaTax for Salesforce CPQ+ page opens and the Account Credentials tab is selected.
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      2. Select Test Connection.
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Step 2: Establish a connection between Salesforce CPQ+ and AvaTax

After you install Connector for Salesforce CPQ+ (the AvaTax cartridges), connect Salesforce CPQ+ to AvaTax.

Before you begin

Steps

  1. In Salesforce CPQ+, select Setup.
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  2. Under Home, search for and select Installed Packages.
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  3. On the Installed Packages page, select Configure next to the AvaTax for Salesforce CPQ+ package.
    Image 8.jpg
    The AvaTax for Salesforce CPQ+ page opens and the Account Credentials tab is selected.
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  4. Add your AvaTax account number and license key.
  5. Select Test Connection.
  6. For the Company Code, select the code for the company you want to connect to in AvaTax.

    To find a company code in AvaTax, go to Settings > All AvaTax Settings, and then select Manage under Companies. Company codes are listed next to company names.
  7. Select the Corporate Address tab, and then provide a company address.
    This address is the origin address used on transactions.
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Salesforce CPQ+ is now connected to AvaTax.  

Step 3: Manage taxability of products and services

After you connect your business application to AvaTax, you may want to further adjust the settings depending on the products and services you sell and whether you have exempt customers.

Map the items you sell to Avalara tax codes 

Some products—such as clothing, food, software, medical supplies, software subscriptions, and freight—are taxed differently depending on where they're sold. To get the most accurate rate for these items, map them to Avalara tax codes. If you don't map items to Avalara tax codes, all products and services are taxed at the standard rate for each jurisdiction.

Steps

  1. In Salesforce CPQ+, open a product object and edit the Avalara Tax Code. Add the Avalara tax code for the product object. 
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  2. Save your changes.

Exempt customers from tax

If you regularly sell to tax-exempt customers, you need to consistently exempt their purchases. If you don't already have a way to exempt customers, here are the options available to you through Avalara.

Use CertCapture

CertCapture is the most comprehensive solution for managing exemption certificates and other compliance documents. This product must be purchased separately. Contact your Account Manager for more information.

Use CertCapture with or without AvaTax to manage compliance documents:

  • Store an unlimited number of your customers' exemption documents in one place
  • Automatically exempt purchases from tax when appropriate
  • Send mail or email campaigns to ask your customers for certificates, and then track their progress

In Salesforce Sales Cloud, add individual customers or multiple customer records at once to CertCapture.

Use Exemptions

Exemptions is included with AvaTax. Exempt purchases from tax by associating exemption information with customer records.

To activate Exemptions in AvaTax, select Exemptions and then select Get Set Up. For more information, see set up Exemptions.

In Salesforce Sales Cloud, add individual customers or multiple customer records at once to Exemptions.

Add an exemption number to a customer record

Enter an exemption number in the exemption number field on a customer account record. AvaTax recognizes the customer as exempt. However, it does not store customer exemption information.

To store customer exemption information, use CertCapture or Exemptions.

Add an entity use code to a customer, transaction, or item

When you use an entity use code in Salesforce CPQ+, AvaTax exempts transactions as long as the entity use code is valid for the jurisdiction where the transactions take place. However, it does not store customer exemption information.

For more information about available entity use codes, see the exempt reason matrix for the U.S. and Canada.

  1. Add an entity use code to a customer account record.
    1. Select a customer account record in Salesforce CPQ+.
    2. Select an entity use code on the account record.
  2. Add an entity use code to a transaction type.
    1. Go to Orders, Opportunities, or Quotes and open the object you want to make exempt.    
    2. Add an entity use code to your selection.
      The exemption applies only to that transaction.
  3. Add an entity use code to an item on a transaction.
    1. Go to Orders, Opportunities, or Quotes and open the object to which you want to add an exempted item.
    2. Select the item you want to add the exemption to and enter the entity use code.
      The exemptions applies only to that item on that transaction.

Step 4: Update AvaTax settings for Salesforce CPQ+

Connector for Salesforce CPQ+ works with the suggested default settings. But you can adjust them any time based on your company's business needs.

  1. In Salesforce CPQ+, select Setup, and search for installed packages in the search field. Select Installed Packages.
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  2. Next to AvaTax for Salesforce CPQ+, select Configure. The Connector for Salesforce CPQ+ configuration page opens.
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  3. Under Account Credentials, do the following:
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    Section Field and Action

    Account Number and License Key

    To view your account number in AvaTax: 

    Select Settings > All AvaTax settings.
    The account number is listed at the top of the page as your Account ID. If you don't know your license key, get a new one.

    Company Code

    Type the company code that you entered when you activated your AvaTax account.
    All accounting software uses a company code to identify itself to AvaTax.

    Environment

    Select the type of account that you're connecting to AvaTax.

  4. Under Corporate Address, type the address that you used as your origination address when calculating sales tax.
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  5. Under Advanced Settings, do the following:
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    Section Field and Action

    Enable Address Validation

    If you disable address validation, AvaTax uses the customer's ship-to address as entered to calculate the correct sales tax. Sales tax might be calculated incorrectly if you disable this option.

    Save Transactions to AvaTax (optional)

    Enable to commit transactions to AvaTax.

    Enable Tax Calculation

    If you disable tax calculation, your accounting software no longer uses AvaTax to calculate tax on transactions.

    Enable AvaTax Exemptions

    Enable to use the exemptions utility, which lets you create exemptions records in Exemptions or CertCapture via Salesforce CPQ if you use one of those products.

    Disable AvaTax Triggers (optional)

    If you disable AvaTax triggers, orders that you delete in Salesforce CPQ are not voided in AvaTax.

    Launch Mapper Studio

    Select to launch the utility that lets you map Salesforce CPQ fields to AvaTax fields.

  6. Under MultiCompany Settings, in the Object Name for Subsidiary box, type the API name of the appropriate custom object you previously created and associated.

  7. Type the corresponding value in the Subsidiary Field Name on Account box, and then select Display Mapping.
    Company codes that are associated with the subsidiary object appear.

  8. Select the AvaTax company code and then select Save.
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  9. If you need to change the Ship From Address that displays for a subsidiary, which is used as the origin address for calculating tax, do the following:

    • Select AvaTax Company Codes, and then select the company for which you want to change the address.
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    • Select Edit, change the address, and then select Save.
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Step 5: Send a test transaction from your business application

After you connect your application to AvaTax, send a few test transactions to make sure the connection is working and to verify different business scenarios and workflows.

  1. In your business application, create and commit a transaction or an invoice.
    The transaction must be committed for AvaTax to calculate tax. If your application allows it, add a prefix to the document code on the test transaction so you can easily identify the transaction and void it later on. 

    Tip icon

    Tip

    We recommend testing common workflows and billing scenarios including quotes, return invoices, or credit memos.

    Here are some things you might want to include in a test transaction:

    • Addresses in jurisdictions where you collect and pay tax
    • Products and services mapped to Avalara tax codes
    • Shipping fees included in a freight line
    • Tax-exempt customers, if any
  2. Once the transaction is posted to AvaTax, sign in to AvaTax and go to Transactions to review the transaction. If the test transaction doesn't show up in AvaTax or look as you expect, try these things:
    • Make sure the account ID, license key, and company code in AvaTax match the ID, key, and code in your business application.
    • Create another test transaction and turn off any plugins or customizations to your business application. Sometimes these additions interfere with the connection to AvaTax.
  3. Change your settings as needed.
  4. Once you're satisfied with the AvaTax results, void the transaction in your business application and in AvaTax to make sure it isn't included in your tax returns.

Frequently asked questions