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Avalara Help Center

Why are credits not calculating tax?

Overview

Every now and then when we credit an invoice that includes tax and re-bill the invoice because it should be tax exempt, Avalara credits the original invoice but does not credit the tax amount

Environment

Avalara Avatax

Resolution

Please be sure to look at the TO section on the transaction detail of your credit when it is in Avatax. 

 

If you see the check box below TO checked in for any line, a tax override was used and came to Avatax from the accounting software.

This can lead to tax calculations being different than expected.

Cause

Customer was unaware that the credit memo has a tax override in their accounting software that told Avatax to use the tax amount of 0.00 instead of allowing Avatax to calculate the correct amount of tax.