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How do I create a child company to use as a testing account?

Overview

I would like to have a way to test new development platforms on my production account but I don't want the transactions to show up in my reports as report-able documents.

Environment

Avalara AvaTax

Resolution

  • Login to the Admin Console
  • Click the Organization Tab
    • Click the New Button
  • Create a new company  that is "Part of Multi-Company Organization"
    • Under Select Parent Company, choose the Live company you would like to copy settings from
    • Separate Reporting Entity: you may choose Yes or No, since this is a test company it will not matter
      • Usually you choose Yes if you have a separate FEIN for the company
    • Tax Profile: Choose Inherit Tax Profile to use the same settings as the Parent Company you selected, or choose Create Tax Profile if you would like the Test company to have its own separate settings from the Parent
    • Company Name: Create any name you would like, an example would be "Test Company 01"
    • Company Code: If your accounting system specifies a company code, please enter this as the Company Code in the settings. If your accounting system will allow you to choose the company code, you may enter whatever you like. An example would be "TEST" or "001"
    • Select your Default Country and Currency 
    • Rounding Level: The default is Line, this means if tax is calculated with more than two places past the decimal point (0.123) the tax calculation will be rounded to two decimal places after each line is calculated
      • Document means tax will be calculated for all lines, then the calculated tax will be totaled and the total will be rounded to two decimal places
      • Ex: Line 1 = 0.123, Line 2 = 1.4568, Line 3 = 0.056 
        • All lines will be totaled (unrounded) 0.123 + 1.4568 + 0.056 = 1.6358
        • Now the total will be rounded: $1.64
    • Freight & Handling Tax Dependency Level: Default is Entire Document. You should not need to change this setting, unless you drop-ship
      • If you drop-ship, your transactions will have multiple line items which all go to different places
      • In this case you can choose to have Freight determined by State, Tax Region, or Address
    • Enter an Address for your Test Company
    • Enter a Contact for the Test Company
    • Location Information: Since this is a test company, it does not matter what you enter here. Unless you would like to test transactions which are shipped from multiple locations.
      • Location code: Since this is optional, you can enter something like "001" or "Test"
      • Category: you may select any option
      • Start Date: if you are testing locational transactions, make sure this date is when you want tax calculation to start
      • Enter an address for the location, this can match your company address
    • Is this a Test Company?: Select Yes
  • Review your information and press Finish if its correct
    • Press Back to edit information
  • You will see this message:
    • Press Ok
  • On the Organization tab you should now see your Test company
    • Click the check-box to the left of the Company name and press the Activate button at the top of the page
  • Notes
    • Make sure that when you want to pass test transactions that you change the Company Code to the Test Account.
      • If you do not, all transactions will calculate as if they were being processed by the Parent Company 
    • The Test Company = Yes property ensures that this company will not appear in liability worksheets.

 

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