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Avalara Help Center

How do I recalculate transactions to trigger a different tax type?

Overview

You were collecting a tax type for the jurisdiction that is not handled on the form that is being filed - and you will have to recalculate all affected transactions.

Environment

AvaTax Update

Avalara Returns

Resolution

To rectify this, the following steps may be required:

  1. Edit your "Where you collect and remit tax" settings to update to matching tax type supported by the form that is being filed
    1. Navigate to Settings > Where You Collect Tax > Click state 'Details' > Change the Tax Type drop down bar
  2. Recalculate all existing transactions afterward

*Note: Simply changing the nexus settings to the correct tax type does not automatically recalculate existing transactions.

(if you skip this step - zero return will be filed)

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If you have multiple transactions you need to recalculate - import the existing transactions after exporting the invoice data by following the instructions listed here:

Go to Reports > (Under 'Report Category' drop-down menu) Select Sales tax document export > (Under 'Report Name' drop-down menu) Select Sales tax document line export

  • Pull the report for the period (and region) you need to adjust
  • Generate
    • Download the import template: Go to Transactions > Import transactions > click Download the transaction import toolkit
    • Copy the data from the Document Lines report and paste it in the correct column in the Transaction Import template and save it
      • Headers between the export file and the import file will not match
      • helpful hint: use the "ImportTransactionsHelp_Protected.xlsx" file available for download to view a color-coded template showing the required fields, you may also hover above the headers to see each field option and a brief description of each input choices:
      • HELPPROTECTED.PNG
    • Use a process code of 4 for 'adjust existing transactions' for sales tax invoices (different process for consumers use)
    • Go to Transactions > Import transactions > drag & drop your reformatted import file

Note: Depending on the information you are updating, you may not need to copy all the information from the report. You must include all required fields, to obtain the most precise tax also include the full address, item code, and tax code if applicable. Full information on the import template is included in the help file in the template download folder.

Afterward, an amended return may be required. If you would like Avalara Returns to file an amended return or file late for a fee, follow these instructions exactly to Amend and File Late.

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