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.
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.
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 is the delivery address. Please ensure the addresses for your Brightpearl warehouses are set correctly in Settings > Products / Inventory / Warehouses.
Information about your business, such as where you have nexus and other tax details, should be configured 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:
- Grey: Taxes are in a pending state
- Red: An error has occurred in calculating taxes or while sending the invoice to Avalara
- Green: Taxes have been calculated successfully
- Blue: 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. 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 AvaTax checkbox 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 > Tax > Tax settings and enable the 'Use AvaTax for tax by default' setting.
You can easily enable or disable AvaTax for all rows on an order by clicking the 'AvaTax' column heading.
You can also choose to show a warning if taxes are not fully calculated before taking payment. This setting can also be found at Settings > Tax > Tax settings. When enabled, if taxes have not been fully calcuated a popup message will alert the user when attempting to record a payment against an order.
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.
- The integration with Avalara does not support Brightpearl's 'Prices including tax' mode.