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 sales order and sales credit 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 exemptions

Customer tax status exemptions are indicated by entering the appropriate 'CustomerUsageType' value from the Avalara 'handling tax exempt customers' page into the customer record.

Go to "handling tax exempt customers" on Avalara

Brightpearl will share any customer exemption status with Avalara to include in its calculations. These exemptions are single letters, A-R.

See 'Configuring the customer exemption field' help article to set this up.

Product tax codes

Product taxability is determined in a similar way, by entering the appropriate tax code from the Avalara tax codes list into the product record.

View the Avalara tax codes

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.

See 'Configuring the product tax code field' help article to set this up.

Business and address information

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.

How to calculate taxes

To calculate sales taxes in Brightpearl using AvaTax:

  • Ensure the AvaTax checkbox is checked on a sales order row, 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 order tax status will be shown next to allocation and fulfillment status icons:

Sales_Order_Tax_status_icon.png

  • 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).

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

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 (such as 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.

Sales_Screen_Tax_status_icon.png

Important information

  • The integration with Avalara does not support Brightpearl's 'Prices including tax' mode.
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