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How do I use Entity Use Codes in QuickBooks to exempt transactions?

Overview

You would like to begin exempting your customers in Quickbooks by using the AvaTax Entity Use Codes.

Environment

Quickbooks

Resolution

  • You will first need to enable the Entity Use Code functionality in the AvaTax settings
    • Go to File > AvaTax > AvaTax Configuration > Tax Calculation > Check the box next to Enable Entity/Use Codes.
  • Now go to the Customer Record and enter the Edit page
    • Click the Additional Info tab
    • In Customer Type add the entity use code you wish to pass, for example: G for a Resale exemption.
    • Save
  • For all future transactions, the Entity Use Code you entered in the Customer Type field will be included on transactions to AvaTax.
  • Here is a link to the list of all AvaTax Entity Use Codes
    • If you do not have any Entity Use Codes in the Customer Type list, you will need to enter them.
    • To use the Entity Use Codes as exemptions, the entry can only be one letter.
      • If you want to add a Resale Entity Use Code, then type in only the letter "G"
      • If you want a generic exemption code, then type in only the letter "L"