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Why is my entity use code not working in Quickbooks Desktop?

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Overview

I have an entity use code attached to my customer and it is not applying in AvaTax. 

Environment

QuickBooks Desktop

AvaTax 

Resolution

  • Go into the AvaTax Configuration by going to File->AvaTax->Preferences
  • Go to the Customer Exemptions tab and make sure the Entity Use code box is checked