Avalara Tax Integration

Initial Configuration

=============

To Configure AvaTax API:

- Navigate to: Accounting or Invoicing App >> Configuration >> AvaTax >> AvaTax API

- Click the Create button.

- Uncheck the Disable AvaTax Calculation box

- Fill out the form with your Company Code, Account Number, and License Key

   as provided with your Avalara account

- Select the proper service URL provided to you by Avalara: test or production.

- Click the Test Connection button

- Click the Save button

Other Avatax API advanced configurations:

- Adapter

  - Request Timeout -- default is 300ms

  - Enable Logging -- enables detailed AvaTax transaction logging within application

- Address Validation

  - Disable Address Validation

  - Address Validation on save for customer profile -- automatically attempts

    to validate on creation and update of customer profile,

    last validation date will be visible and stored

  - Force Address Validation -- if validation for customer is required but not valid,

    the validation will be forced

  - Return validation results in upper case -- validation results

    will return in upper case form

  - Automatically generate customer code -- generates a customer code

    on creation and update of customer profile

- Avalara Submissions/Transactions

  - Disable Avalara Tax Commit -- validated invoices will not be sent to Avalara

  - Enable UPC Taxability -- this will transmit Odoo's product ean13 number

    instead of its Internal Reference. If there is no ean13

    then the Internal Reference will be sent automatically.

- Countries

    - Add or remove applicable countries -- the calculator will not calculate

      for a country unless it's on the list.

Configure Exemption Codes

~~~~~~~~~~~~~~~~~~~~~~~~~

Exemption codes are allowed for users where they may apply (ex. Government entities).

 Navigate to: Accounting or Invoicing App >> Configuration >> AvaTax >> Exemption Code

The module is installed with 16 predefined exemption codes.

 You can add, remove, and modify exemption codes.

Product Tax Codes

~~~~~~~~~~~~~~~~~

Create product tax codes to assign to products and/or product categories.

Navigate to: Accounting or Invoicing App >> Configuration >> AvaTax >> Product Tax Codes.

From here you can add, remove, and modify the product tax codes.

Configure Taxes

~~~~~~~~~~~~~~~

The AvaTax module is integrated into the tax calculation of Odoo.

AVATAX is automatically added as a type of taxes to be applied.

You can configure how AVATAX integrates within the Odoo system.

Configure AVATAX Tax Type:

- Navigate to: Accounting or Invoicing App >> Configuration >> Accounting >> Taxes

- Select AVATAX from the list view (automatically added on module install).

- Click the Edit button to configure the AVATAX Tax Type

  with the proper tax account configuration for your system.

Note: Upon initial install the settings will be blank.

The image shows the demo configuration.

Product Category Configuration

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Products in Odoo are typically assigned to product categories.

AvaTax settings can also be assigned to the product category

when a product category is created.

- Create New Product Category

  - Navigate to: Inventory >> Configuration >> Products >> Product Categories

  - Click Create button

- Configure Product Category Tax Code

  - Under AvaTax Properties >> Tax Code

  - Select the desired Tax Code

Company Configuration

~~~~~~~~~~~~~~~~~~~~~

Each company linked to AvaTax and their associated warehouses

should be configured to ensure the correct tax is calculated

and applied for all transactions.

Warehouse Configuration

- Navigate to: Inventory >> Configuration >> Warehouse Management >> Warehouses

- Select the warehouse associated with your company

- Under Address, follow the link to be directed to your warehouse profile

Configure Warehouse Address

- Enter Warehouse Address

- Under AvaTax >> Validation, click Validate button

Customer Configuration

~~~~~~~~~~~~~~~~~~~~~~

Properly configuring each customer ensures the correct tax is calculated

and applied for all transactions.

Create New Customer

- Navigate to Contacts

- Click Create button

Configure and Validate Customer Address

- Enter Customer Address

- Under AvaTax >> Validation, click Validate button

- AvaTax Module will attempt to match the address you entered

  with a valid address in its database.

  Click the Accept button if the address is valid.

Tax Exemption Status

- If the customer is tax exempt, check the box under

  AvaTax >> Tax Exemption >> Is Tax Exempt and

- Select the desired Tax Exempt Code from the dropdown menu.

Usage

=====

Customer Invoices

~~~~~~~~~~~~~~~~~

The AvaTax module is integrated into Sales Invoices

and is applied to each transaction.

The transaction log in the AvaTax dashboard shows the invoice details

and displays whether the transaction is in an uncommitted or committed status.

A validated invoice will have a Committed status

and a cancelled invoice will have a Voided status.

The module will check if there is a selected warehouse

and will automatically determine the address of the warehouse

and the origin location.

If no address is assigned to the warehouse, the company address is used.

Discounts are handled when they are enabled in Odoo's settings.

They are calculated as a net deduction on the line item cost

before the total is sent to AvaTax.

Create New Customer Invoice

+++++++++++++++++++++++++++

- Navigate to: Accounting or Invoicing >> Customers >> Invoices.

- Click Create button.

Validate Invoice

++++++++++++++++

- Ensure that Tax based on shipping address is checked.

- Line items should have AVATAX selected under Taxes for internal records.

- To complete the invoice, click the Validate button.

- The sale order will now appear in the AvaTax dashboard.

Register Payment

++++++++++++++++

- Click the Register Payment button to finalize the invoice.

Customer Refunds

~~~~~~~~~~~~~~~~

Odoo applies refunds as opposed to voids in its accounting module.

As with customer invoices, the AvaTax module is integrated

with customer refunds and is applied to each transaction.

Refunded invoice transactions will be indicated

 with a negative total in the AvaTax interface.

Initiate Customer Refund

- Navigate to: Accounting or Invoicing >> Customers >> Invoices

- Select the invoice you wish to refund

- Click Add Credit Note button

Create Credit Note

- Under Credit Method, select Create a draft credit note.

- Enter a reason.

- Click Add Credit Note button.

Note: You will be taken to the Credit Notes list view

Validate Refund

- Select the Credit Note you wish to validate, review and then click Validate button.

Register Refund Payment

- Click Register Payment button to complete a refund

Sales Orders

~~~~~~~~~~~~

The AvaTax module is integrated into Sales Orders and allows computation of taxes.

Sales order transactions do not appear in the in the AvaTax interface.

The information placed in the sales order will automatically pass to the invoice

 on the Avalara server and can be viewed in the AvaTax control panel.

Discounts are handled when they are enabled in Odoo's settings.

They will be reported as a net deduction on the line item cost.

Create New Sales Order

- Navigate to: Sales >> Orders >> Orders

- Click Create button

Compute Taxes with AvaTax

- The module will calculate tax when the sales order is confirmed,

  or by navigating to Action >> Update taxes with Avatax.

  At this step, the sales order will retrieve the tax amount from Avalara

  but will not report the transaction to the AvaTax dashboard.

  Only invoice, refund, and payment activity are reported to the dashboard.

- The module will check if there is a selected warehouse

  and will automatically determine the address of the warehouse

  and the origin location. If no address is assigned to the warehouse

  the module will automatically use the address of the company as its origin.

  Location code will automatically populate with the warehouse code

  but can be modified if needed.