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Install and Configure Avalara AvaTax for Microsoft Dynamics NAV

After you activate AvaTax and set up your company profile, install and configure AvaTax for your accounting software. 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

Update these settings when your business needs change.

If you've previously installed AvaTax for Microsoft Dynamics NAV, learn how to upgrade to the latest version.

It's critical that installation and configuration steps are completed in the correct order. Be sure to complete each section before moving on to the next.

Download AvaTax for your accounting software

To connect your accounting software to AvaTax, download your integration software. 

  1. In AvaTax, on the Home tab, click Get Started.
  2. In the Download and Install Your Integration Software section, click Download Software. Avalara Account opens in a new tab.
  3. Download the version of the connector you need.
  4. In your Downloads folder, right-click the .zip file and extract the installation folder or file (.exe or .pdf or .msi).

Prepare to install

Before you install AvaTax for Microsoft Dynamics NAV:

  • Contact your Customer Account Manager (CAM) at Avalara to make sure you've got the appropriate Avalara services in place for your  implementation.
  • Contact your Partner of Record to make sure your license file has been updated to include the 14073210 Avatax Sales Tax license. If your partner can't order the free granule from Microsoft, give their partner ID and country to your implementation consultant, and we'll add them to our list of certified resellers.

Your organization’s Microsoft Dynamics NAV Solution Developer should review your source code to resolve the following:

  • If there are add-on applications, third-party products, or custom-written enhancements within the Microsoft Dynamics NAV application, it's imperative that your organization’s Microsoft Dynamics NAV Solution Provider properly merges the avalaraX.fob code with any other add-ons or custom-written enhancements.
  • If you receive an error when you import the avalaraX.fob file, ask your Microsoft Dynamics NAV Solution Developer to merge the code changes, rather than importing them.

Install AvaTax for your accounting software

There are two distinct elements to AvaTax for Microsoft Dynamics NAV: the adapter and the connector objects. Both are necessary to use AvaTax for Microsoft Dynamics NAV.

Run the AvaTax install wizard

After you extract the AvaTax ZIP file from AvaTax, run the AvaTax install wizard on every Microsoft Dynamics NAV application server to install the adapter.

  1. Run Avalara AvaTax™ for Microsoft Dynamics NAV.exe as an Administrator.
  2. On the Welcome to the InstallShield Wizard screen, click Next.
  3. On the Ready to Install the Program screen, click Next. The install wizard copies Avalara integration object files to the application server and registers the adapter.
  4. When the installation is complete, click Finish to exit the wizard.

Import the integration object files

Import  Avalara.fob and merge AvalaraX.txt to finish installing AvaTax for Microsoft Dynamics NAV. Avalara.fob contains Avalara-based objects that use ID#'s from 14073200 to 14073540. AvalaraX.txt contains Microsoft Dynamics NAV-based objects with Avalara code that must be merged with existing objects. We don't recommend importing AvalaraX.fob because it may erase code modifications in existing Microsoft Dynamics NAV objects.

To import the integration object files:

  1. In Microsoft Dynamics NAV Development Environment, go to Tools > Object Designer.
  2. On the File menu, click Import, navigate to the folder with the integration object files, and then select Avalara.fob:
    • For 32-bit Windows, browse to C:\Program Files\Avalara\AvaTax Connect Adapter\Bin.
    • For 64-bit Windows, browse to C:\Program Files (x86)\Avalara\AvaTax Connect Adapter\Bin.
  3. Import all objects in the file, and then click OK.
  4. Code merge AvalaraX.txt or the code change document in the installation package.
  5. Import one MenuSuite object from Avalara MenuSuite.fob:
    1. Go to Tools > Object Designer.
    2. On the File menu, click Import, navigate to the folder with the integration object files, and then select Avalara MenuSuite.fob,
    3. Import one of the MenuSuite objects (ID#1051-1060) from the file, and then click OK.
  6. Compile the imported and merged objects. The Avalara-based objects contain .Net  data types that need to be compiled for the DLL to work properly.

Configure AvaTax for Microsoft Dynamics NAV

The more you personalize the configuration of Microsoft Dynamics NAV, the better your experience may be. It may also help your tax calculations be more correct.

Configure AvaTax with the Setup Assistant

Before you run the AvaTax Setup Assistant, make sure you've set up your company in AvaTax and you have your AvaTax account number and license key on hand. The AvaTax Setup Assistant guides you through the configuration settings required to calculate tax.

  1. In Microsoft Dynamics NAV, search for AvaTax Setup Assistant, and then click the Avalara AvaTax Setup Assistant link.
  2. To confirm your account credentials:
    1. Next to Enter your Avalara Credentials and Company Code, double-click the AssistEdit button SetupAssistant-AssistButton.png. The Avalara Account Credentials page opens,
    2. Fill in the following, and then click Test Connection to confirm you've accurately entered your account credentials:
      Field Action
      • Account Number
      • 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 AvaTax.
      Web Service URL
      • Select Development if you're connecting to an AvaTax sandbox account.
      • Select Production if you're connecting to an AvaTax production account.
    3. Choose the company code you created when you activated your AvaTax account. (The Company List automatically populates on successful test connection.)
  3. To map your tax area code:
    1. Next to Map General Ledger Accounts(s) to AvaTax Tax Area Code, double-click the Assist button SetupAssistant-AssistButton.png. The Avalara AvaTax Tax Area Code page opens.
    2. In the Map Tax Area Code section, from the Tax Area Code list, select AVATAX.
    3. To select Map Gen. Ledger Account, click Set G/L accounts in Tax Jurisdictions, and then, in the Tax Jurisdictions window, for the tax area code selected, map appropriate G/L accounts for Tax Account (Purchases) and Tax Account (Sales).
    4. To update the tax area code:
      1. In Tax Area Code Mass Update Utility, click Set Tax Area Code.
      2. On the Tax Area Code Mass Update page, select the Tax Area Code, select Content Type of Customer or Vendor, and select the Selection Range.
      3. Click Action > Update    
  4. To manage address validation:
    1. Next to Enable Address Validation for USA and Canada, double-click the Assist button SetupAssistant-AssistButton.png. The Avalara AvaTaxValidate Address page opens.
    2. Fill in the following:
      Field Action
      Disable Address Validation
      • Select to prevent AvaTax from validating addresses. You can still validate address on select Microsoft Dynamics NAV pages.
      • Clear to have AvaTax validate addresses. AvaTax uses the customer's ship-to address to calculate sales tax. If an address can't be validated at the street level during the tax calculation, AvaTax uses the city, state, and ZIP Code to calculate sales tax.
      Country Codes for Address validation

      Country codes are already selected, but if you need to add or change one: 

      1. Click No Country Name, and then click Map For Address Validation.
      2. Click Canada, and then click Map For Address Validation.
      3. Click US, and then click Map For Address Validation.
      4. Click OK.

      AvaTax only validates addresses located in the United States and Canada.

  5. To test your AvaTax connection, next to Test Calculating Tax, double-click the Assist button SetupAssistant-AssistButton.png,  and then follow one of these steps, as appropriate:
    • If the success message displays, click Close and continue to the next section. You've successfully configured your connection.
    • If any other message displays, follow steps 1-4 again until you receive the success message.

Configure AvaTax for your accounting software

Many Avalara configuration options in Microsoft Dynamics NAV are available on the AvaTax Configuration page.

To open the Edit - AvaTax Configuration dialog box and configure AvaTax for Microsoft Dynamics NAV:

  1. In Microsoft Dynamics NAV, search for AvaTax Configuration, and then click the Avalara AvaTax Configuration link.
  2. On the Home tab, click Edit Settings.
  3. To modify your AvaTax account credentials in Microsoft Dynamics NAV, on the Account Credentials FastTab, enter the correct information in the following fields, and then click Verify Credentials:
    Field Action
    • Account Number
    • End User 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 AvaTax.
    Web Service URL
    • Select Development if you're connecting to an AvaTax sandbox account.
    • Select Production if you're connecting to an AvaTax production account.
    Company Code Select your AvaTax company code
  4. Complete or modify fields in the remaining sections, using the following information, to configure AvaTax for Microsoft Dynamics NAV as appropriate for your business:
    • The General FastTab:
      Field Description
      Display all Warning Messages
      • Select to have AvaTax display both errors and warning messages.
      • Clear to have AvaTax display only errors, not warning messages.
      User Defined 1 and 2

      Optional: Select the type of data you want to send to AvaTax.

      These values don't have an impact on tax calculation.

      Send Item Account to AvaTax

      Optional: Select to send the associated general ledger account number to AvaTax for reporting purposes. This data displays in the Revenue Account field in the line item.

      This doesn't have an impact on tax calculation.

      Return Address

      Select the address you want to use for sales tax calculation of return orders and credit memos.

      • Customer: Uses the bill-to address
      • Invoicing: Uses the location code address
      • Shipping: Uses the ship-to address
      Enable Service Module Integration Optional: Select to use AvaTax with service module transactions.
      Update Default Data Select Country Code.
      Enable Logging Optional: This function is primarily used for troubleshooting issues. If you choose to enable logging, all success, warning, and error messages are included in the log. Only enable logging if you've been instructed to do so by Avalara Support because it can significantly slow down your service.

       

    • The Tax Calculation FastTab:
      Field Description
      Disable Tax Calculation Optional: Select to prevent AvaTax from calculating tax on transactions in Microsoft Dynamics NAV.
      Always Check Address Before Calculating Tax Optional: Select to validate addresses before AvaTax calculates tax. Don't enable this unless you absolutely need to; it may cause extra charges.
      Tax Calculation Date Option Select which date field is passed to AvaTax as the document date.
      Exempt Processing
      • Sell-to Customer: Exemption processing is based on the sell-to customer exemption details
      • Bill-to Customer: Exemption processing is based on the bill-to customer exemption details
      • Transaction Level: AvaTax Update uses the transaction-level entity/use code from the billing customer record
      Tax Area Code Select AVATAX to use AvaTax to calculate sales tax. If you don't select this option, AvaTax won't calculate sales tax.

      Statistics Quantity

      (At F7 Statistics in older versions)

      Select which quantity field is used to calculate tax when you perform the Statistics function 

      • Quantity (Order): (Recommended) The Quantity field is used when calculating sales tax
      • Quantity to Ship: The Qty. to Ship field is used when calculating sales tax
      • Quantity to Invoice: The Qty. to Invoice field is used when calculating sales tax

      Release Quantity

      (At Order Release in older versions)

      Select which quantity field is used to calculate tax when you perform the Release function 

      • Quantity (Order): The Quantity field is used when calculating sales tax
      • Quantity to Ship: The Qty. to Ship field is used when calculating sales tax
      • Quantity to Invoice: The Qty. to Invoice field is used when calculating sales tax
      Enable Entity/Use
      Code
      Optional: Enable to map entity/use codes for your customer addresses to flag them as exempt from sales tax
      Use UPC as Item Code Optional: Select to send a UPC instead of an item code to AvaTax. Using this feature may trigger additional fees. Talk to your Customer Account Manager (CAM) for more information. For more information, learn how to map items to UPCs.
      Enable Asynchronous AvaTax Posting 

      Optional: 

      • If disabled, when transactions are posted, AvaTax calculates sales tax, and then posts the transaction to both Microsoft Dynamics NAV and AvaTax. After the posting, the Doc Status of this transaction shows as Committed in AvaTax. 
      • If enabled, when transactions are posted, AvaTax calculates sales tax, and then posts the transaction to Microsoft Dynamics NAV only. The Doc Status of this transaction shows as Uncommitted in AvaTax. To post the transaction in AvaTax, use the Asynchronous Posting utility. After you run this utility, the Doc Status of this transaction shows as Committed in AvaTax.

      Enable COGS (cost of goods sold)

      (Only available in versions older than NAV 2016 RTM 9.00.42815.08.00v2)

      Leave at default setting. If you enable this option, you can choose the Tax Group Code. If the selected Tax Group Code is the same as the line tax group code of the transaction, the tax is calculated based on the unit cost (instead of the unit price) specified on the item card. If the selected Tax Group Code is not the same as the line tax group code of the transaction, the tax is calculated based on the unit price specified on the item card.

      Tax Group Code

      (Only available in versions older than NAV 2016 RTM 9.00.42815.08.00v2)

      Leave at default setting. You can select a Tax Group Code only if Enable COGS option is enabled.

      Initiate AvaTax based on Tax Area Code

      (Only available in versions older than NAV 2016 RTM 9.00.42815.08.00v2)

      We strongly recommend you select this. If enabled, AvaTax is used as the tax calculation method if an AvaTax tax area code appears on a sales or billing transaction.
      • Map US Country Code
      • Map CAN Country Code

      (Only available in versions older than NAV 2016 RTM 9.00.42815.08.00v2)

      Optional: Disabled by default.

      If you choose to enable, ensure Initiate AvaTax based on Tax Area Code is disabled, and then select the map country code type you want to enable. Map the relevant country codes. Based on the country code, perform the Statistics function and post to AvaTax.

      If enabled, the country code overrides the values in Tax Area Code (in an invoice) and Tax Group Code (on item lines of a transaction). 

       

    • The Use Tax Assessment FastTab:
      Field Description
      Enable Use Tax Assessment

      If selected, your accounting software uses AvaTax to calculate consumer use tax on vendor invoices

      Credit G/L Account Select the type of account from which the accrual amount is to be credited
      Debit Account Options If you select Single Account in GL Account to Debit, select the associated account from which the accrual amount is to be debited
      Debit G/L Account Select the type of account from which the accrual amount is to be debited
      Gen. Journal Batch Name Optional: Selecting AVATAX is recommended
      Auto Accrual If selected, AvaTax accrues under-charged tax on a vendor invoice when transactions are posted.
      Threshold Amount Enter the dollar amount AvaTax uses to determine whether under-charged tax on a vendor invoice is of an amount significant enough to trigger accrual when posting transactions.

       

    • The Address ValidationHoverTT.png FastTab:
      Field Description
      Disable Address Validation
      • Select to prevent AvaTax from validating addresses. You can still validate address on select Microsoft Dynamics NAV pages.
      • Clear to have AvaTax validate addresses. AvaTax uses the customer's ship-to address to calculate sales tax. If an address can't be validated at the street level during the tax calculation, AvaTax uses the city, state, and ZIP Code to calculate sales tax.
      Country Codes for Address validation

      Country codes are already selected, but if you need to add or change one: 

      1. Click No Country Name, and then click Map For Address Validation.
      2. Click Canada, and then click Map For Address Validation.
      3. Click US, and then click Map For Address Validation.
      4. Click OK.

      AvaTax only validates addresses located in the United States and Canada.

      Return Results in Uppercase Optional: Select to save all address validation results in uppercase format.
      Optional: Batch Processing Options
      • During Batch Address Validation, continue processing regardless of errors: If enabled, the Batch Address Validation Utility continues to process addresses even after it encounters an error.
      • Accept Validated Address during Batch Address Validation manually: If enabled, you can choose which validated addresses you accept from the Batch Address Validation utility. If disabled, validated addresses are automatically accepted in Microsoft Dynamics NAV.

       

    • There are no configuration options in the About AvaTax FastTab. It contains your AvaTax account services details, technical information about your connector, and links to get help.

Optional Configuration

To make the most of AvaTax for Microsoft Dynamics NAV:

  • Create a tax group code for each AvaTax tax code you've selected to map to an item, resource, general ledger account, and so forth.
  • Create a new tax detail line for each AvaTax tax group code you've created, making sure to:
    • For Tax Jurisdiction Code, enter AVATAX.
    • For Tax Type, select Sales and Use Tax.
    • Select an effective date to enable the code.
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