@Kenny Daniel You are absolutely correct. I called Avalara back because it didn't seem correct. The amounts assigned to the tax return are calculated based on the states the company has nexus in which is not necessarily only the states there is a location in. So, the locations and the state the tax is collected in are set up in two different areas of the portal. However, technically, the tax can be affected in some states based on both the ship from and the ship to location. Technically it is possible for the sales tax to be different if you ship from any state you have nexus in to another state you collect tax in.
To put it succinctly, The person I spoke with on Friday was incorrect, the location codes / warehouse codes are the ship from and the tax that is reported on the tax returns is not tied to the physical location code (Sage 100 warehouse) but the ship to location based on the nexus states the company collects tax in.
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Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
Assistant to the Traveling Secretary
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Original Message:
Sent: 11-09-2020 14:46
From: Kenny Daniel
Subject: Avalara and Multiple States
I think tech support might have given you false info. I have 2 customers that have Nexus in more than one state and the warehouse code was never an issue. At least I have never heard of any issues. It really does not make sense. Some people use warehouses as virtual locations, some use them as Bins, some use them as customer inventory locations, etc. To accumulate data based on warehouse would be inaccurate in most cases. And if it were true then why would you need Avalara if the data entry person had to assign the warehouse to meet nexus. I might be misunderstanding the whole thread but that's my 2 cents.
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Kenny Daniel
TechnoClarity, Inc.
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Original Message:
Sent: 11-09-2020 09:45
From: Doug Higgs
Subject: Avalara and Multiple States
Inventory is tracked through the main warehouse even though it may physically be elsewhere.
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Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
Assistant to the Traveling Secretary
Original Message:
Sent: 11-09-2020 09:38
From: Jeff Schwenk
Subject: Avalara and Multiple States
Not following along (still early and am just on my third cup of Joe). The invoice always uses 000 for the shipping warehouse? How do they keep the invoice quantity accurate? Or is the sales order assigned 000 and by the time it ships, the invoice has the correct warehouse location?
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Jeff Schwenk
FORMER 90M Board Member
Bottomline Software, Inc.
Waynesboro VA
540-221-4444
Original Message:
Sent: 11-09-2020 09:11
From: Doug Higgs
Subject: Avalara and Multiple States
They don't need a script. I can assign a default warehouse code to the ship to address.
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Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
Assistant to the Traveling Secretary
Original Message:
Sent: 11-09-2020 09:04
From: Therese Logeais
Subject: Avalara and Multiple States
That's what I was thinking as an alternative - a script to determine the warehouse code. :)
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Therese Logeais, Technology Integrators
Original Message:
Sent: 11-09-2020 08:52
From: Doug Higgs
Subject: Avalara and Multiple States
They are not concerned about inventory quantity. All invoices have been 000 warehouse. We dont want the invoice data entry staff having to make a decision on what warehouse code to assign to every invoice. I am trying to determine: 1. If Avalara uses the Sage 100 warehouse code (known by Avalara as the location code) to accumulate the amounts that are used to prepare the sales tax returns, and 2. if 1 is true, what's the best way to automate populating the Sage 100 warehouse code... possibly a script to map the ship to state to the warehouse code?
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Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
Assistant to the Traveling Secretary
Original Message:
Sent: 11-09-2020 08:43
From: Therese Logeais
Subject: Avalara and Multiple States
If they are shipping from different warehouses, isn't that important regardless of the sales tax consequences?? Or are they not concerned about their inventory status??
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Therese Logeais, Technology Integrators
Original Message:
Sent: 11-09-2020 08:39
From: Doug Higgs
Subject: Avalara and Multiple States
Thanks Terese. I'm primarily concerned about the sales tax returns that are created by Avalara. My customer has 5 states and this is the first month live. I was told by Avalara tech support that the Avalara sales tax returns accumulate the amounts based on the location code that is assigned to each invoice. The Avalara location code is aka the Sage 100 warehouse code. Does the invoice data entry person have to make a decision on the sales tax nexus and assign one of the five warehouse codes? That would be frightening. What is they sell to IA but they enter 001 warehouse code which is the IL warehouse. Does the IA tax get reported on the IL sales tax return?
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Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
Assistant to the Traveling Secretary
Original Message:
Sent: 11-09-2020 08:33
From: Therese Logeais
Subject: Avalara and Multiple States
Certain states calculate sales tax based on the originating location but most do it by destination location so the warehouse doesn't really come into play. I do recall that Illinois has certain counties that charge by origination. You should ask your Avalara rep. You can do some workarounds if I recall correctly.
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Therese Logeais, Technology Integrators