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Why is Avatax not calculating tax on Credit Memos in Dynamics GP?

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Overview

You are attempting to process a credit memo in Dynamics GP, however, no tax is being calculated even though "AvaTax" is set as the transaction tax schedule.

Environment

Dynamics GP

Resolution

  • Credit Memos are most commonly done in the Accounts Receivable module in Dynamics GP.  This needs to be enabled in the GP Connector Configuration:
    • At the upper left on the Microsoft Dynamics GP menu, go to Tools > Setup > System > Avalara AvaTax, and then clickConfiguration.   In the Avalara AvaTax Configuration dialog box, click Tax Calculation.
    • Locate the AvaTax integration for Receivables Transaction Entry and put a check in the checkbox:

    • You may also select Tax Amount Adjustment functionality via Receivables Transaction if you want to enable tax adjustments on Accounts Receivables documents.

    • Click OK at the bottom of the screen to save your changes.