Connector for NetSuite now supports tax calculation on the dropship purchase orders created manually from the sales order. It enables you to choose your preferred vendor for the VAT transaction.
Before you begin
Ensure that you have the following before you proceed further:
You must have a VAT AvaTaxGlobal service subscription.
The VAT effective date must be 01st January 2021 or later to apply the new or enhanced VAT rules. If the VAT effective date is before 01st January 2021, then the old VAT rules will be applied for the transactions.
You must have the International Tax Reporting bundle installed in your NetSuite account. After installing the International Tax Reporting bundle, you will be able to access the EU Triangulation and other options at the line level.
- Log in to NetSuite.
- Create a sales order.
- In the CUSTOMER field, add a VAT customer.
When you add a VAT customer, three new header fields are added to the sales order.
MIDDLE MAN VAT ID Specify the Middle Man VAT ID. This field is mandatory for EU triangulation. AVALARA PURCHASE ORDER REF The purchase order number reference displays after you save the purchase order that gets created when you save this sales order. TRANSPORT For EU triangulation, this field is considered None for sales transactions irrespective of the option selected.
- Add a line item and check the EU TRIANGULATION column.
- In the LOCATION field, select a ship-from address.
- Under the Shipping tab, verify the ship-to address.
- Select Calculate Tax or Save.
Once the transaction is saved, the Drop Ship Purchase Order button displays on the sales order.
- Select Drop Ship Purchase Order.
A new purchase order gets created with the sales order reference number.
- On the newly created purchase order, select your preferred vendor.
When you add a vendor, the following are added to the purchase order:
AVALARA CREATED FROM Displays the sales order reference from which this purchase order is created. Shipping Under the shipping tab, the ship-to address of the sales order is displayed.
- Select a location.
- Add a line-level item.
- Check the EU TRIANGULATION column.
- Select Calculate Tax or select Save.