Sage 100

Wondering what you are seeing or advising with respect to Avalara and the use of the AVATAX sales tax schedule.

With one customer I'm working with we are tracking sales tax in 8 states.
We have only activated AVATAX as the schedule for ship to addresses in those 8 states. 

Part of the reason for not using the AVATAX code for all 50 states is my concern that we'd be charged a transaction fee for those states we don't file in or have nexus. Avalara hasn't be able to clearly explain their billing and provide any backup to how they are counting transactions so I am ( perhaps wrongly ) presuming that if the schedule is AVATAX that the transaction is charged. ( I know the transaction counting goes deeper than this but figure this is an easy way to view the chargeability ).

However, I'm curious what others do.

It seems like to get the most benefit from Avalara we would want all of our transactions in their system so we could view nexus or approaching nexus type reports.

I'm curious what you've done - turn on the AVATAX tax schedule for all customers in the 50 states?
Or do you just use AVATAX on the customers in states where you know you have nexus? 




------------------------------
Wayne Schulz
Schulz Consulting
860-516-8990
------------------------------

Does Avalara notify the customer when they hit the Nexus threshold?  For example, if Nexus is obtained when there is either $200K in sales or 20 transactions, does Avalara then begin calculating sales tax on sales in those areas?  If so, maybe the AVATAX tax schedule is necessary even if the end user doesn't currently have nexus.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
Chauffeur, Chef, and Personal Assistant to Sprinkles
------------------------------

Doug,

I don't believe that Avalara automatically turns on the nexus. I'm pretty sure they don't.

If you don't have a state checked off as "yes we file here" then Avalara doesn't compute tax even if you made a taxable sale into that state. It is only when you tell Avalara that you are now filing in the state that the tax is computed.

However, what I think they do ( provided you use AVATAX as the tax schedule on the invoice ) is create summaries that show where you may be approaching nexus in states that you aren't presently filing.



------------------------------
Wayne Schulz
Schulz Consulting
860-516-8990
------------------------------

Original Message:
Sent: 11-09-2021 15:36
From: Doug Higgs
Subject: Avalara Best Practice - AVATAX sched for all or just nexus state ship tos?

Does Avalara notify the customer when they hit the Nexus threshold?  For example, if Nexus is obtained when there is either $200K in sales or 20 transactions, does Avalara then begin calculating sales tax on sales in those areas?  If so, maybe the AVATAX tax schedule is necessary even if the end user doesn't currently have nexus.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
Chauffeur, Chef, and Personal Assistant to Sprinkles
------------------------------

Getting the You're Approaching Nexus report might be a reason to use the AVATAX tax schedule, depending on the transaction cost of doing so.  One has to wonder if the billing confusion is intentional.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
Chauffeur, Chef, and Personal Assistant to Sprinkles
------------------------------

Original Message:
Sent: 11-09-2021 15:53
From: Wayne Schulz
Subject: Avalara Best Practice - AVATAX sched for all or just nexus state ship tos?

Doug,

I don't believe that Avalara automatically turns on the nexus. I'm pretty sure they don't.

If you don't have a state checked off as "yes we file here" then Avalara doesn't compute tax even if you made a taxable sale into that state. It is only when you tell Avalara that you are now filing in the state that the tax is computed.

However, what I think they do ( provided you use AVATAX as the tax schedule on the invoice ) is create summaries that show where you may be approaching nexus in states that you aren't presently filing.



------------------------------
Wayne Schulz
Schulz Consulting
860-516-8990
------------------------------


Original Message:
Sent: 11-09-2021 15:36
From: Doug Higgs
Subject: Avalara Best Practice - AVATAX sched for all or just nexus state ship tos?

Does Avalara notify the customer when they hit the Nexus threshold?  For example, if Nexus is obtained when there is either $200K in sales or 20 transactions, does Avalara then begin calculating sales tax on sales in those areas?  If so, maybe the AVATAX tax schedule is necessary even if the end user doesn't currently have nexus.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
Chauffeur, Chef, and Personal Assistant to Sprinkles

I think it’s more likely that the company is dysfunctional - especially around the area of professional services.

I’m also convinced that revenues generated from Sage 100 are immaterial to their results and it’s likely improvements will be slow ( if at all ).

---------------------------------
Wayne Schulz
Schulz Consulting
860-516-8990
---------------------------------



Original Message:
Sent: 11-09-2021
From: Doug Higgs
Subject: RE: Avalara Best Practice - AVATAX sched for all or just nexus state ship tos?

Getting the You're Approaching Nexus report might be a reason to use the AVATAX tax schedule, depending on the transaction cost of doing so.  One has to wonder if the billing confusion is intentional.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
Chauffeur, Chef, and Personal Assistant to Sprinkles
------------------------------


Original Message:
Sent: 11-09-2021 15:53
From: Wayne Schulz
Subject: Avalara Best Practice - AVATAX sched for all or just nexus state ship tos?

Doug,

I don't believe that Avalara automatically turns on the nexus. I'm pretty sure they don't.

If you don't have a state checked off as "yes we file here" then Avalara doesn't compute tax even if you made a taxable sale into that state. It is only when you tell Avalara that you are now filing in the state that the tax is computed.

However, what I think they do ( provided you use AVATAX as the tax schedule on the invoice ) is create summaries that show where you may be approaching nexus in states that you aren't presently filing.



------------------------------
Wayne Schulz
Schulz Consulting
860-516-8990
------------------------------

But one might assume that the Sage 100 user needs be similar to every one who uses this software interface for tax reporting.  Avalara might be better served to heed customer input.  Unfortunately, they are expanding so quickly, they can't keep up with the everyday requirements (lack of FTE's.  Sage could/should be doing this as well, but their sales are spiraling downward.  Their time is spent jettisoning FTE'e every year leaving few resources to grow the business.

------------------------------
Jeff Schwenk
FORMER 90M Board Member -140,000,000 is a TERRIBLE thing to waste!!!
Bottomline Software, Inc.
Waynesboro VA
540-221-4444
------------------------------

Original Message:
Sent: 11-10-2021 07:31
From: Wayne Schulz
Subject: Avalara Best Practice - AVATAX sched for all or just nexus state ship tos?

I think it's more likely that the company is dysfunctional - especially around the area of professional services.

I'm also convinced that revenues generated from Sage 100 are immaterial to their results and it's likely improvements will be slow ( if at all ).

---------------------------------
Wayne Schulz
Schulz Consulting
860-516-8990
---------------------------------




Original Message:
Sent: 11-09-2021
From: Doug Higgs
Subject: RE: Avalara Best Practice - AVATAX sched for all or just nexus state ship tos?

Getting the You're Approaching Nexus report might be a reason to use the AVATAX tax schedule, depending on the transaction cost of doing so.  One has to wonder if the billing confusion is intentional.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
Chauffeur, Chef, and Personal Assistant to Sprinkles
------------------------------


Original Message:
Sent: 11-09-2021 15:53
From: Wayne Schulz
Subject: Avalara Best Practice - AVATAX sched for all or just nexus state ship tos?

Doug,

I don't believe that Avalara automatically turns on the nexus. I'm pretty sure they don't.

If you don't have a state checked off as "yes we file here" then Avalara doesn't compute tax even if you made a taxable sale into that state. It is only when you tell Avalara that you are now filing in the state that the tax is computed.

However, what I think they do ( provided you use AVATAX as the tax schedule on the invoice ) is create summaries that show where you may be approaching nexus in states that you aren't presently filing.



------------------------------
Wayne Schulz
Schulz Consulting
860-516-8990


Original Message:
Sent: 11-09-2021 15:36
From: Doug Higgs
Subject: Avalara Best Practice - AVATAX sched for all or just nexus state ship tos?

Does Avalara notify the customer when they hit the Nexus threshold?  For example, if Nexus is obtained when there is either $200K in sales or 20 transactions, does Avalara then begin calculating sales tax on sales in those areas?  If so, maybe the AVATAX tax schedule is necessary even if the end user doesn't currently have nexus.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
Chauffeur, Chef, and Personal Assistant to Sprinkles

Wayne you are correct, Avalara does not automatically turn on nexus status, the customer has to do this in the portal.  There is a dashboard that shows what states you are getting close to nexus with.

------------------------------
Melissa Secody, Operations Manager
melissas@dsdinc.com
DSD Business Systems
San Diego CA
800.627.9032
------------------------------

Original Message:
Sent: 11-09-2021 15:53
From: Wayne Schulz
Subject: Avalara Best Practice - AVATAX sched for all or just nexus state ship tos?

Doug,

I don't believe that Avalara automatically turns on the nexus. I'm pretty sure they don't.

If you don't have a state checked off as "yes we file here" then Avalara doesn't compute tax even if you made a taxable sale into that state. It is only when you tell Avalara that you are now filing in the state that the tax is computed.

However, what I think they do ( provided you use AVATAX as the tax schedule on the invoice ) is create summaries that show where you may be approaching nexus in states that you aren't presently filing.



------------------------------
Wayne Schulz
Schulz Consulting
860-516-8990
------------------------------


Original Message:
Sent: 11-09-2021 15:36
From: Doug Higgs
Subject: Avalara Best Practice - AVATAX sched for all or just nexus state ship tos?

Does Avalara notify the customer when they hit the Nexus threshold?  For example, if Nexus is obtained when there is either $200K in sales or 20 transactions, does Avalara then begin calculating sales tax on sales in those areas?  If so, maybe the AVATAX tax schedule is necessary even if the end user doesn't currently have nexus.

------------------------------
Doug Higgs
Midwest Commerce Solutions, Inc
(312) 315-0960
Chauffeur, Chef, and Personal Assistant to Sprinkles

Having been dragged into the Avalara world by a customer who researched and bought independent of my feedback. I would say I've learned a TON. 
Not many VARS seems to have deep experience with setup and configuration with Avalara and I believe that's because for the most part the setup is pretty cookie cutter.

The exceptions are those parts of Avalara which don't work well

a. Marketplaces
b. Certcapture
c. Avalara professional services



------------------------------
Wayne Schulz
Schulz Consulting
860-516-8990
------------------------------