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 'entity/use code' value against the contact record. Read more about configuring this here.

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

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. Read more about configuring this here.

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.

Business and address information

The origin of the goods will be assumed to be the order warehouse and the destination is the delivery address. Please ensure the warehouse addresses are set correctly at 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.

Calculating taxes

Sales taxes can be calculated by AvaTax in a sales order or credit within Brightpearl:

  1. Ensure the order row is complete and the correct warehouse and delivery address is selected
  2. Ensure the AvaTax checkbox is checked on the order row
  3. Select 'Calculate taxes'

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After a short delay, you will see the calculated taxes. The tax code (taxable or non-taxable) will also be updated for each order row, as per the connector settings.

Please note: While taxes are incomplete, 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 then click the retry link.

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You are able to uncheck the AvaTax checkbox at any point to revert to using Brightpearl's default tax calculation or to manually override the tax value.

Settings

Settings can be found at Settings > Tax > Tax settings

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By default the AvaTax checkbox is disabled; this is the field that tells Brightpearl to use AvaTax to calculate sales tax. If you'd like AvaTax to be used by default for all manual orders, navigate the settings and enable 'Use AvaTax for tax by default'. 

You can also choose to show a warning if taxes are not fully calculated before taking payment. When enabled, if taxes have not been fully calculated, a popup message will alert the user when attempting to record payment.

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Tax status icon

An order tax status icon is shown next to allocation and fulfillment status icons:

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mceclip3.png Gray Taxes are pending calculation
mceclip4.png Red An error has occurred in calculating taxes or while sending the invoice to Avalara
mceclip2.png Blue Taxes have been calculated successfully
mceclip5.png Green The invoice has been reported to Avalara
Dash AvaTax has not calculated any taxes for the order

Hovering over the icon will also reveal the meaning of the status:

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It is possible to add the tax status icon to your sales reports, such as Recent Sales. You can do this by adding it as a configurable column (select Filter > Configurable columns). 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 included.

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Important information

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

Have more questions? Submit a request