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 the integration, learn how to upgrade to the latest version.
Download AvaTax for your accounting software
To connect your accounting software to AvaTax, download your integration software.
- In AvaTax, on the Home tab, click Get Started.
- In the Download and Install Your Integration Software section, click Download Software. Avalara Account opens in a new tab.
- Download the version of the connector you need.
- In your Downloads folder, right-click the .zip file and extract the installation folder or file (.exe or .pdf or .msi).
Install AvaTax for your accounting software
- Right-click the downloaded installation file, and then click Run as administrator.
- In the Welcome to the InstallShield Wizard for AvaTax for Sage 50 dialog box, click Next.
- In the Ready to Install the Program dialog box, click Install.
- In the InstallShield Wizard Completed dialog box, click Finish.
Configure AvaTax for your accounting software
- Open AvaTax for Sage 50.
- In the AvaTax for Sage 50 dialog box, click Configuration.
- Click the Company for which you want to calculate sales tax, and then click OK.
- In the AvaTax Configuration dialog box, add the required information on the following tabs, and then click OK:
- The Peachtree tab:
Field Action Select a Company Click to select Company Code Type the code you created in AvaTax for the company that you select
- The Connection tab:
Field Action URL Enter https://development.avalara.net if you have an AvaTax development account or https://avatax.avalara.net if you have an AvaTax production account.
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.
Select Development if you have an AvaTax development account or Production if you have an AvaTax production account. Test Connection Click to test the credentials you entered. If the connection succeeds, data automatically populates the fields below it
- The Tax Codes tab:
Field Action Ship Method The default shipping code when you enter a shipping charge on a sales document. Item ID To set the Tax Code for an item, select the item and add/update the tax code Update Tax Code List Click to update the tax code list Synchronize with Peachtree Click to synchronize the tax code list with Sage 50
- The Entity/Use Codes tab:
For more information regarding the available list of entity/use codes, see Exemption Reason Matrices for US and Canada.
Field Action Customer ID To set the Entity/Use Code for a customer, select the row and add or update the entity/use code Synchronize with Peachtree Click to synchronize the tax code list with Sage 50
- The Address Validation tab:
Field Action Return results in uppercase Optional: Select the address you want to use for sales tax calculation of return orders and credit memos.
- Company Address Validation
- Customer Address Validation
- Vendor Address Validation
Click, enter the address, and then:
- Click Validate to populate the validated address in the right panel.
- Click Save to Peachtree to update the address in Sage 50.
- Optional: The Options tab:
Field Action AvaTax Request Timeout We recommend that you don't adjust this setting. Enter the length of time to wait for AvaTax to respond to calculation requests. Disable warning messages Select to disable AvaTax warning messages.
- Optional: The About Avalara tab contains technical information about your connector/integration and your AvaTax account.
- The Peachtree tab:
- Close AvaTax for Sage 50 to finalize your changes.
Create a vendor
- In Sage 50, on the Maintain menu, click Vendors, and then fill in the following:
Field Action Vendor ID Select or type AVALARA Name Enter Avalara Expense Account Select the account to use to track your sales-tax liabilities
- On the File menu, click Save, and then click Close.
Create a sales tax item
- In Sage 50, on the Maintain menu, click Sales Taxes.
- In the Sales Tax dialog box, click Set Up a New Sales Tax, and then click Next.
- In the Set Up New Sales Tax dialog box, do the following, and then click Next:
- In the What is the total rate that you will charge? field, type 0.00000%. (AvaTax will determine the correct rate for calculating sales tax.)
- Leave How many individual rates make up this total rate? at its default setting: 1
- In the Add Sales Tax Agency dialog box, fill in the following, and then click Next:
Field Action Sales tax agency ID Select or type AVALARA Sales tax agency name Type AvaTax Which vendor do you send the taxes you collect to? Select or type AVALARA Rate Type 0.00000% (AvaTax will determine the correct rates for calculating sales tax) Select an account to track sales taxes Select the account to use to track sales taxes
- In the Sales Tax Entered dialog box, fill in the following, and then click Finish:
Field Action Sales tax ID Type AVATAX Sales tax name Type AVATAX Do you charge sales tax on freight? Select No
- In the new Sales Tax dialog box, click Cancel.