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Assigning Avalara Tax Codes to Inventory Items

  • 1.  Assigning Avalara Tax Codes to Inventory Items

    Posted 04-15-2020 15:20
    Edited by Doug Higgs 04-15-2020 15:28
    How do you assign an Avalara Tax Code to a Sage 100 Inventory Item Code?  Typically in Sage 100 you create a tax code and assign a tax code to the tax schedule and the tax schedule to the customer code.  However, the customer codes all have "AvaTax" assigned to them so I am not sure how to add an Avalara Tax Code to an item.

    The end user is implementing AvaTax for the first time.  They sell tangible products, but also do tool sharpening, a service.  I believe I need to assign an Avalara Tax Code to each service inventory item, because services can sometimes be subject to sales tax.  I know the tax code can be assigned to an item using the Avalara portal.  The Avalara implementation specialist indicated the Avalara tax code can also be assigned to an item in Sage 100.  The Avalara implementation specialist doesn't know much about Sage 100.

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    Doug Higgs
    Midwest Commerce Solutions, Inc
    (312) 315-0960
    Assistant to the Traveling Secretary
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  • 2.  RE: Assigning Avalara Tax Codes to Inventory Items

    Posted 04-15-2020 15:53
    I'm not sure about assigning Avalara tax codes, but we have had to set up unique tax classes in Sage 100 with special tax rules in Avalara in order to have different taxability for the same item in different states.  For example, we have a customer where certain chemicals are taxable in some states, but not others.  We set up a new tax class of CH that is used for those items (assigned as the sales tax class for the item, rather than TX or NT).  Then in Avalara, you can indicate which states tax the CH tax class and which do not.

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    Barb Rippberger
    Technology Integrators
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  • 3.  RE: Assigning Avalara Tax Codes to Inventory Items

    Posted 04-15-2020 15:56
    There is an option in Avatax to turn on the tax code by item (also available in Misc Items via a new MORE in the upper right corner).  I don't have a screen handy to do a screen shot, but it's in the lower section of the Avatax setup screen.

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    Beth Bowers
    Mom to Samson, Peanut, ChiChi, Canton, Cagney and Daisy (NO Oxford comma - shriek!)
    Beth Bowers
    269-445-1625
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  • 4.  RE: Assigning Avalara Tax Codes to Inventory Items

    Posted 04-15-2020 15:59
    Thanks for your comments @Beth Bowers  This is exactly what I need. ​

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    Doug Higgs
    Midwest Commerce Solutions, Inc
    (312) 315-0960
    Assistant to the Traveling Secretary
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  • 5.  RE: Assigning Avalara Tax Codes to Inventory Items

    Posted 04-15-2020 16:43
    Thank you @Barb Rippberger.  Your configuration is similar to what I am trying to do.  This helps a lot.

     ​

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    Doug Higgs
    Midwest Commerce Solutions, Inc
    (312) 315-0960
    Assistant to the Traveling Secretary
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  • 6.  RE: Assigning Avalara Tax Codes to Inventory Items

    Posted 04-16-2020 08:41
    Is this added functionality inside of Sage or a cross reference table in avatax?  For example the restaurant equipment industry has crazy tax rules from state to state. Taxable here not taxable there.  I thought the information is external to Sage inventory.  Consequently the setup in Avatax more time consuming to get going.

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    alan niergarth
    Velosio LLC
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  • 7.  RE: Assigning Avalara Tax Codes to Inventory Items

    Posted 04-16-2020 08:57
    @alan niergarth  Thank you for your comments.  I was able to get this issue resolved by enabling the AvaTax Configuration Option.  Once the AvaTax Configuration Option "Enable Tax Code Assignments by Item" is enabled, the Avalara tax code can be assigned to a Sage 100 inventory item code.  Once the Avalara tax code is associated with an item code, Avalara makes the appropriate tax calculation.

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    Doug Higgs
    Midwest Commerce Solutions, Inc
    (312) 315-0960
    Assistant to the Traveling Secretary
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  • 8.  RE: Assigning Avalara Tax Codes to Inventory Items

    Posted 04-16-2020 16:36
    Kind of like assigning the default AVATAX tax schedule to customer.   @Doug Higgs is that code embedded in CI_item as a new field? (or whatever table in Sage?)  The DSD integration program must add the new ​fields to the Sage data tables.

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    alan niergarth
    Velosio LLC
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  • 9.  RE: Assigning Avalara Tax Codes to Inventory Items

    Posted 04-16-2020 17:26
    @alan niergarth  Yes.  The tax code is embedded in ci_item.  The field is taxcode_234$.​

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    Doug Higgs
    Midwest Commerce Solutions, Inc
    (312) 315-0960
    Assistant to the Traveling Secretary
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  • 10.  RE: Assigning Avalara Tax Codes to Inventory Items

    Posted 04-16-2020 17:29
    @alan niergarth  I thought the same.  The Avalara implementation specialist recommended I add the Sage 100 item codes and cross reference the Avalara tax code on the Avalara portal.   I didn;t want to have to maintain two databases.  I prefer to maintain the Avalara tax codes in Sage 100 and not have to use the portal.  This is particularly important when adding new item codes.​

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    Doug Higgs
    Midwest Commerce Solutions, Inc
    (312) 315-0960
    Assistant to the Traveling Secretary
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  • 11.  RE: Assigning Avalara Tax Codes to Inventory Items

    Posted 04-16-2020 17:34
    Edited by Doug Higgs 04-16-2020 17:35
    This is added functionality in Sage 100.  There are two options:  1. Enter the item code and Avalara tax code on the Avalara portal.  When a transaction is processed, the Avalara program looks for a match and uses the associated tax code to calculate the sales tax., or  2.  Associate the Avalara tax code with the Sage 100 item code in Sage 100 Item Maintenance.  When a transaction is processed, the Avalara program looks for a match and uses the associated tax code to calculate the sales tax.

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    Doug Higgs
    Midwest Commerce Solutions, Inc
    (312) 315-0960
    Assistant to the Traveling Secretary
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