Why is my tax amount off in reports?

Overview

Running a Sales and Seller's Use Tax Summary, or Jurisdiction Detail report. My tax amount does not match up with the taxable amount multiplied by the tax rate. 

Environment

Avalara AvaTax

Resolution

• Some tax codes will tax a special rate for one or more jurisdictions
  • Since the Sales and Sellers Use tax Jurisdiction Detail report separates tax details by jurisdiction, you can see one jurisdiction with a different amount
  • If you run this report in HTML format and click on the link for that jurisdiction, you can review the tax calculation by local jurisdiction on each transaction
• If you credit and re-bill a transaction for an exempt customer from a previous period.
  • This will cause the tax credit to be there while the sales amount in the current period to be a net 0. 
• Some states have partial exemptions.
  • For instance, California has a partial exemption for Industrial/Manufacturing. They still calculate tax but at a lower rate.