Calculate Taxes with Avalara Integration

this article outlines how nue seamlessly integrates with avalara, a top tier cloud based tax compliance solution provider, enabling users to achieve accurate tax calculations for quotes, orders, invoices, and credit memos while ensuring compliance it explains the configuration process for this integration in detail let's get started! permissions required to manage avalara integrations, users need the following permissions integrations avalara integration setup avalara connection to setup avalara connection, users can follow the steps below login to nue app https //app nue io navigate to system settings → search for avalara integration avalara connection will be displayed optionally, users can search for integration overview, and click the wrench icon to navigate to avalara connection configuration page avalara active connection log in to your avalara account at https //admin avalara com https //admin avalara com/ for avalara sandbox, the url is https //sandbox admin avalara com https //sandbox admin avalara com once logged in, click on the "account" on the upper right corner you can find the account id displayed copy the account id and enter it in the account number field to locate your license key, navigate to settings → license and api keys copy the license key and enter it in the license key field click update connection button, followed by test button if the avalara connection is setup properly, you can optionally search for the company code that is associated with this nue tenant with multiple companies in avalara, we no longer need the company to be selected if the company is not selected, the avalara integration will still be activated at operational time, the default company (tagged as isdefault = true will be used to calculate taxes for transactions to manage your companies in avalara you can login to avalara platform, and navigate to settings → manage companies to view and manage all companies optionally, you can enable / disable the following configuration settings commit tax details determines if taxation transactions will be committed in avalara committing tax details in avalara is an essential step to ensure accurate and compliant tax calculations and reporting for businesses when tax details are committed, it means that the tax information for a particular transaction or period is finalized and recorded in avalara's system this option is only meaningful for tax calculations for billing transactions invoices and credit memos enable logging determines if communications between nue and avalara are logged in nue system this is essential for (1) troubleshooting (2) monitoring (3) audit trail and (4) compliance avalara sandbox indicates if this connection is for avalara sandbox after all fields are entered properly, click 'activate' to activate the avalara connection configure tax codes once avalara connection is activated, taxation is enabled in nue all transactions are subject to taxations according to the tax codes associated to the products or services involved in the transactions avalara offers an extensive range of tax codes catering to various businesses however, most companies require only a limited set of tax codes for their operations nue simplifies this process by providing a convenient way to restrict the available tax codes, ensuring your company can easily select and use the necessary ones you can find the entire list of tax codes supported by avalara here https //taxcode avatax avalara com/ to configure a set of tax codes to select and use for your company, login to nue app https //app nue io and navigate to price builder → tax codes tax code setup click new tax code, and enter name, status, tax code, and description name the tax code name used in your company for example, 'core platform' tax code copy the avalara tax code description enter your own description or copy the avalara description status set the status to active to be used by the product catalog you can switch the status to be inactive if this tax code is no longer used click save note if the nue tax code is inactive, it cannot be selected or used by any product in the product catalog nonetheless, the tax code will still be applied for tax calculations in existing products until admin users explicitly modify the tax code on these products configure tax information for products to configure tax information for products, you can follow the steps below login to nue app https //app nue io and navigate to price builder → product catalog ensure the avalara connection is "active" (settings → avalara integration) click to edit a product or bundle product you should see 2 tax related fields taxation component enabled in product catalog tax mode "tax mode" refers to the method used to calculate and apply taxes to product prices or transaction amounts there are two primary tax modes inclusive and exclusive inclusive inclusive tax mode means that the tax amount is already included in the price of the product or service exclusive exclusive tax mode means that the tax amount is added on top of the price of the product or service at the time of purchase this is the default value tax code this refers to nue tax code you created in the last step for example, you can select 'core platform' only active tax codes are available to use click 'save and exit' assign an ava tax exempt category to an account assigning an avatax exempt category to an account helps streamline the sales tax calculation process, ensures compliance with tax regulations, and prevents errors in tax calculation you can follow the steps below to assign a tax exempt category to an account login to salesforce https //login salesforce com , and navigate to nue on salesforce app via the app launcher; click on the name of the account to edit; in the 'taxation' section, edit 'ava tax exempt category field, and select an applicable value click save configure account layout if you do not see the taxation section or ava tax exempty category field, please ask your system administrator to configure the field onto the page layout assigned to your user role for the account object in salesforce calculate taxes for quotes and orders in an automated tax calculation system like avalara, once a product is associated with a specific tax code, it means that the product is linked to a predefined tax treatment, such as a particular tax rate or exemption status when a transaction occurs, the tax amount applied to that product will be determined by several factors, including shipping address the tax rate may vary depending on the location of the customer's shipping address different jurisdictions have different tax rates and rules, and the tax calculation will consider the applicable rate based on the customer's location transaction date tax rates can change over time due to legislative updates or other factors therefore, the date of the transaction is considered to ensure that the correct tax rate at that specific time is applied tax code of the product as mentioned, the product's tax code defines how it should be taxed it may have different tax treatments based on its category, usage, or any applicable tax exemptions when users create a quote or an order, they can enter billing address and shipping address in the general informations step for example after users add products to the quote or order in the line editor step and click quick save, the taxes will be automatically calculated and shown in both the price summary and each line item tax reflected here could apply to sales or vat tax depending on the use case please note that when the tax mode is exclusive for a product, the total amount is the sum of the total price and the tax amount when the tax mode is inclusive for a product, the total amount is equal to the total price if the quote or order contains both tax exclusive and tax inclusive products, the total amount in the price summary may not be equal to the sum of total price and total amount, due to different tax treatments for various products shipping address if there is no shipping address entered in the quote or order, the shipping address of the customer will be used if there is no shipping address of the customer, and there are products subject to taxations, a warning sign will be displayed next to tax and total amount fields in the price summary, indicating the shipping address is required validate address it is recommended that users click on 'validate address' icon to validate the billing address and the shipping address (if different from the billing address) when creating a quote or an order users can click on the 'validate address' icon next to the billing address section header to launch the address validation popup users can review the recommended address, select it and click 'confirm' the recommended address will then be populated to the billing address section users can do the same for the shipping address as well, if it is different from the billing address the taxes will be recalculated when users click quick save or save and exit calculate taxes for invoices and credit memos when an order is activated, invoices and credit memos may be generated upon order activation or in a billing schedule job the billing engine will also calculate taxes according to the tax code, tax mode, invoice date and shipping address of the associated order or customer during the billing process, the following fields on invoice and invoice item, credit memo and credit memo items will be calculated object field description invoice tax amount the total tax amount of all invoice items in the invoice invoice amount without tax the total transaction amounts of all invoice items invoice invoice amount the total invoice amount aggregated from invoice items for tax inclusive products, the invoice amount is the same as the transaction amount for tax exclusive products, the invoice amount includes the transaction amount plus the tax amount invoice item tax amount tha tax amount of the invoice item invoice item transaction amount without tax the taxable amount of the invoice item invoice item transaction amount the total amount of the invoice item the transaction amount includes the taxable amount plus the tax amount multi company support nue’s avalara integration now supports multiple company codes, allowing you to dynamically route tax calculation through any avalara company based on the tax company code defined per account, quote, or order prerequisites before using multi company, ensure the avalara connection is active at least two companies are configured in your avalara account you’ve created a new tax company code picklist field on the account object in salesforce step 1 enable multi company in nue navigate to settings → avalara integration leave the company code field blank → this allows company code to be defined per transaction click activate step 2 create the tax company code field in salesforce in salesforce, create a new picklist field on the account object field name tax company code populate the picklist with valid company codes from avalara → copy these manually from your avalara account step 3 add field to page layouts to enable company code selection throughout the quote to cash process add the tax company code field to the page layouts for account quote order navigate to object → page layouts drag tax company code into any section (e g , “billing and payments”) step 4 create a new customer record use a european shipping address (e g , germany) that supports vat select the appropriate tax company code from the picklist step 5 create a quote or order on the quote or order general info page , toggle or update the tax company code field select a vat enabled product (ensure it has a vat tax code , e g , fr030000) save the quote/order step 6 tax calculation behavior tax is based on shipping address (not billing) upon save, an avalara call is made to calculate vat expect a short delay post save before seeing tax totals step 7 quote → order flow finalize the quote to generate an order ensure tax company code field is inherited and visible on the order any changes to quantity or product on the order will re trigger tax calculation step 8 generate invoice activate the order go to billing and generate the invoice invoice details tax is calculated and visible on the invoice item invoice item detail shows 3 additional vat related fields , including avt step 9 confirm tax sync to avalara after invoice activation, transaction is pushed to avalara in avalara switch to the relevant company code (e g , smart revenue uk) search transactions filtered by country (e g , germany) locate transaction using invoice number (e g , inv 116) 10\ logging & debugging if company code isn't visible at the invoice level in the ui use logs to confirm the correct company code was used in the avalara api call