Integration to AvaTax
Configuration guidelines for managing sales tax in AvaTax
| Program ID | Program name | Description or Comment |
|---|---|---|
| MNS100/G | Company. Connect Division | Select the Tax method field to 3, 4 or 5 depending on the appropriate sales tax method. |
| CRS794 | 'Integration Settings - Tax Interface' | In Sls tax interf,
select 2-AvaTax to specify the applicable
sales tax service. In Server address, specify the URL provided for AvaTax, for example https://sandbox-rest.avatax.com. In Account number, specify the account number provided for AvaTax. In License, specify the license provided for AvaTax. |
| CRS793 | Settings – Sales Tax |
The available fields depend on the settings in MNS100/G. Update tax details – If you select this check box, detailed tax information can be reviewed in (OIS354), (SOS354) or (COS354).Note: This can impact the system performance.
If the check box is
cleared, the tax details are not stored in M3, and can only be reviewed in AvaTax.If you select Incl tax in MI, also specify the number of rows to send in Max line no. |
| CRS130 | Tax Code. Open | See the detailed configuration settings for (CRS130), and populate Tax code AvaTax with the information provided for AvaTax. |
| TXS050 | Sales Tax Exemption. Open |
Only if tax method 5 - Purchase M3 sales tax / Sales tax interface is used: Specify replacing tax codes for the scenarios where exemption tax rates are required in ‘Geographic Code. Enter Exemptions’ (CRS139). |
| MMS005 | Warehouse. Open |
Only if tax method 5 – ‘Purchase M3 sales tax/Sales tax interface’ is used: Specify the geographical codes. |
| CRS235 | Internal address. Open | Use address type 1 – ‘Final destination or goods receiving
address to specify the internal address. The address information is required to determine the taxing jurisdiction. Address line 1 and 2 for the street address, the city and the postal code will be sent to AvaTax to determine the origin address. |
| MMS001 | Item. Open | Specify the default tax code. |
| CRS137 | Geographical Code. Enter Jurisdiction |
Only if tax method 5 – ‘Purchase M3 sales tax/Sales tax interface’ is used: Specify the geographical codes. |
| CRS138 | Geographic Code. Enter Tax Rate | Only if tax method 5 – ‘Purchase M3 sales tax/Sales tax interface’ is used: Specify the applicable tax rates. |
| CRS139 | Geographic Code. Enter Exemptions |
Only if tax method 5 – ‘Purchase M3 sales tax/Sales tax interface’ is used: Specify the applicable exemption tax rates. |
| CRS624 | Supplier. Define Purchase & Financial | If tax method 4 – ‘Purchase VAT/Sales tax interface is used,
specify the applicable VAT related fields. If tax method 5-'Purchase M3 sales tax/Sales tax interface’ is used: Specify geographical code, select Tax included if applicable, and select the default tax code. |
| PPS280 | Costing Element. Open | Only if tax method 5 – ‘Purchase M3 sales tax/Sales tax interface’ is used: Create an element for tax with operator 90. Set the tax code for USE tax. |
| CRS610 | Customer. Open | Specify an address, a tax code and a use code. The address information is required to determine the taxing jurisdiction. Address line 1 and 2 for the street address, the city and the postal code will be sent to AvaTax to determine the destination address. |
| OIS002 | Customer. Connect Addresses | Specify an address. The address information is required to determine the taxing jurisdiction. Address line 1 and 2 for the street address, the city and the postal code will be sent to AvaTax to determine the destination address. |
Specific configuration guidelines for ‘Tax Code. Open’ (CRS130)
Tax codes corresponds to customers and products in AvaTax. They must be configured and assigned. Both customer and item tax codes are configured in this program. Select Taxable for all tax codes, even if you have non-taxable customers or products, to ensure that the tax decision takes place in AvaTax. With this setting, all tax decisions are deferred to the external system, and this simplifies the reconciliation of sales with taxable and non-taxable transactions.
In addition to these settings, the Tax cd AvaTax must be populated with information from AvaTax.
This is an example of tax codes for Clothing & related products (Business-To-Business):
| Tax Code | Description | Taxable | Tax trans code | Tax cd AvaTax | AvaTax description |
|---|---|---|---|---|---|
| TX1 | Normal sales tax | Yes | N-Normal invoice |
PC030100 |
Clothing & related products (B2B) - General |
| TX2 | Normal sales tax | Yes | N-Normal invoice |
PC030101 |
Clothing & related products (B2B) - Aprons - household |
| TX3 | Normal sales tax | Yes | N-Normal invoice |
PC030103 |
Clothing & related products (B2B) - Athletic supporters |
| TX4 | Normal sales tax | Yes | N-Normal invoice |
PC030105 |
Clothing & related products (B2B) - Bandanas |