Brightpearl's Avalara AvaTax integration is currently in beta testing. To take part in the beta, please email email@example.com with the subject including 'AvaTax' and your Brightpearl account ID.
Brightpearl have partnered with Avalara's AvaTax service to provide an integrated tax calculation and reporting service for merchants charging Sales Tax in the US.
This integration provides three different functions:
- Automated sales tax calculation
- Address validation
- Sending invoiced orders to Avalara for reporting
This service requires a subscription. If you don’t already have an Avalara account, sign up here.
Automated sales tax calculation
Avalara's AvaTax service provides guaranteed-accurate rates in every one of the 12,000+ jurisdictions in the United States. With the integration enabled, Brightpearl will send order information to Avalara and retrieve taxes based on:
- Customer taxability
- Product taxability
- The origin and destination of the goods
- Your business (e.g. where you have a tax nexus)
Customer tax status exemptions are indicated by entering the appropriate 'CustomerUsageType' value from this page into the customer record. See 'Configuring the customer exemption field' to set this up. Brightpearl will share any customer exemption status with Avalara to include in its calculations. These exemptions are single letters, A-R.
Product taxability is determined in a similar way, by entering the appropriate tax code from this page into the product record. See 'Configuring the product tax code field' to set this up. Brightpearl will share the product tax code with Avalara to include in its calculations. If none is provided, the default code for 'Tangible Personal Property (TPP)' will be set - P0000000.
The origin of the goods will be assumed to be the Order Warehouse, the destination. Please ensure the addresses for your Brightpearl warehouses are set correctly in Settings > Products / Inventory / Warehouses.
Information about your business, such are where you have nexus and other tax details should be set in your Avalara account, these details cannot be set in Brightpearl.
To calculate sales taxes in Brightpearl using AvaTax:
- Ensure the AvaTax checkbox is checked and the order rows are complete
- Select 'Calculate taxes'
- The tax will then be calculated by AvaTax and shown in the Tax column
After a short delay, you will see the calculated taxes being shown on screen. The tax code for each order row will be updated to those specified in the Connector settings for taxable or non-taxable rows.
The tax status will be shown next to allocation and fulfillment status icons:
- Grey: Taxes are in a pending state
- Red: An error has occurred in calculating taxes or while sending the invoice to Avalara
- Blue: Taxes have been calculated
- Green: The invoice has been reported to Avalara
- - : AvaTax has not calculated any taxes for the order
While taxes are not complete, it is not possible to invoice the order or to take payment. In the event of any issue, you will be shown an error message on the Sales Order screen. Correct the issue and click the retry link in the error message.
You are able to uncheck the AvaTax checkbox at any point to revert to the current behavior (using Brightpearl's default tax calculation or by manually overriding the tax value).
Avalara's AvaTax service requires that addresses are recognized and precise in order for them to provide accurate sales tax calculations. Accordingly, they provide a service for address validation which we have integrated into the contact record.
Selecting the Validate link next to each address will send the selected address to Avalara and their response including any issues will be shown on screen.
Reporting invoiced orders to Avalara
In addition to tax calculation and address validation, Avalara also offers a service where they will collate invoiced order information from Brightpearl for the purpose of providing you, through Avalara's reporting suite, access to a complete breakdown of your tax liabilities in detail. They are also able to file your tax reports to the appropriate authority if you wish.
This feature is not currently available in the beta, but will be made available in Q4 2018.
Setting up the integration
To set up and configure the integration, navigate to the Avalara app in the Brightpearl App Store, click Configure, then Setup. Brightpearl users with the 'Settings' permission will be able to make these changes.
Entering your credentials
- Enter your Avalara credentials in the Connector settings screen.
- Enter the Account ID and the license key provided within your AvaTax admin portal.
- Enter the Service URL (see below)
- Click Test to ensure the credentials are correct
- Save your settings
- The correct Service URL to use for this integration is https://rest.avatax.com
- If you're testing the integration with a Development / Sandbox AvaTax account, use https://sandbox-rest.avatax.com
Selecting the Avalara company
Each Avalara account allows you to associate order information with multiple companies. Select the company name you want to connect to.
Enabling the functionality
You're able to activate and de-activate the functionality provided by the integration independently of each other. Enable the functionality you're wanting your users to access in your Brightpearl account.
Configuring the customer exemption and product tax code custom fields
If you deal with customers who have a tax exemption certificate, or with products which may have a special tax status, you will need to create custom fields in Brightpearl to store the this data to share with Avalara
- Navigate to Settings > Custom field > Customers
- Add a new 'freeform text' custom field for Avalara Customer exemption status (the name and tab of the custom field is your choice)
- Navigate to Settings > Custom field > Products
- Add a new 'freeform text' custom field for Avalara Product tax type (the name and tab of the custom field is your choice)
You then need to set these new custom fields in the Connector Settings, so the integration is aware which data to send Avalara during tax tax calculation and reporting invoices.
- Navigate to the Avalara App's Connector Settings through the App Store
- Update the 'Field to use for Avalara Product tax type' value to your new custom field
- Update the 'Field to use for Avalara Customer exemption code' value to your new custom field
- Save the settings
Any value in these fields will be included with the order information sent to Avalara for calculating sales tax and when reporting invoiced orders.
Configuring the Avalara Tax code for shipping and miscellaneous order rows
If you have entered a value into the custom field for a product, we will share that for Avalara to use when calculating taxes. However, rows that aren't linked to Products in Brightpearl don't have this option.
Where that is the case, you can specify the tax code to use on shipping rows (rows which have the nominal code specified for Shipping in your Chart of Accounts) by entering a value into the 'Product tax type to use for shipping rows' field.
Other items not linked to a product in Brightpearl nor with the shipping nominal code can be attributed a product tax type too by using the 'Product tax type to use for miscellaneous items'.
Note that neither of these fields are mandatory. If left blank, we will use Avalara's default tax type for Tangible Personal Property (TPP) of P0000000.
Displaying the tax status of an order on Sales reports
We've added a 'Tax status' icon which can be shown on your Sales reports (like Recent Sales). You can view this by adding it as a Configurable column by selecting 'Filter > Configurable columns, then add 'Tax status' to the . If you want this column to appear by default, be sure to select the 'Save as default' checkbox before selecting 'Update'. Click 'Filter' again to view the report with the new column.
Setting the AvaTax to be enabled by default
By default the AvaTax checkbox is disabled, this is the field which tells Brightpearl to use AvaTax to calculate sales tax.
If you want AvaTax to be used by default for all orders:
- Navigate to Settings > Company > Accounting: Tax
- Enable the use AvaTax for tax by default setting
- Save the settings
- The integration with Avalara does not support Brightpearl's 'Prices including tax' mode.
- Tax calculation is currently only available on Sales Orders, but will be extended to Sales Credits in Q2 2018.