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Establish a connection between Microsoft Dynamics 365 Business Central and AvaTax

After you install the integration software, connect Microsoft Dynamics 365 Business Central to AvaTax.

Before you begin

Steps

  1. Connect Microsoft Dynamics 365 Business Central to your AvaTax account.
    1. In Microsoft Dynamics 365 Business Central, go to Avalara AvaTax > AvaTax Setup Assistant.
    2. Select Enter Your Avalara Credentials and Company Code.
    3. Enter your account credentials to connect Microsoft Dynamics 365 Business Central to AvaTax:
      • Enter your AvaTax account number and license key.
      • For the web service URL, select whether you want to connect to a production or a sandbox account.
      • Under Company List, select the company that you want to connect to your business application.
    4. Select Verify Credentials at the top of the window.
      A message confirms your credentials validated successfully. Select OK.
    5. Select Close to return to the AvaTax Setup Assistant.
  2. Map your Microsoft Dynamics 365 Business Central sales account to the AVATAX tax area code.
    1. Select Map General Ledger Account(s) to AvaTax Tax Area Code.
    2. For the Tax Area Code, select AVATAX.
    3. Select Set G/L Accounts in Tax Jurisdictions.
      The Tax Jurisdictions window opens.
    4. Select Edit List.
    5. Under Tax Account (Sales), select the sales account ledger you want to associate with the AVATAX tax area code.
    6. Select Edit List to confirm your selection.
    7. Select the Back arrow to return to the previous window.
  3. Apply the AVATAX tax area code to customers or vendors.
    1. Select Set Tax Area Code.
      The Tax Area Code Mass Update window opens.
    2. Fill in the following:
      • For the Tax Area Code, select AVATAX.
      • For the Content Type, select Customer or Vendor.
      • In Selection Range, select the range of customer records to which this applies.
    3. Select Update.
      A message confirms the tax area code has been applied.
    4. Select the Back arrow to return to the previous window, and then select Close.
  4. Optional: Choose whether you want to make changes to address validation.
    By default, address validation is enabled for transactions sent to AvaTax.
  5. Test your connection to AvaTax.
    1. Select Test Calculating Tax.
      A message confirms you're connected.
    2. If you see any other message, review these steps and make sure all information was entered correctly.

      One common error is that there is no address for your company. Enter a general or ship-to address on your company information page in Microsoft Dynamics 365 Business Central to fix this problem.

Microsoft Dynamics 365 Business Central is now connected to AvaTax and ready to send transactions for tax calculation. To further customize the way Microsoft Dynamics 365 Business Central interacts with AvaTax, see Connector settings in Microsoft Dynamics 365 Business Central.