Sage 100

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  • 1.  Avalara Drop Ship Challenge

    Posted 07-28-2025 15:53

    Our Sage 100 client sells to dealers. Increasingly they get an order from a dealer that must be drop-shipped the dealer's customer. Our order is bill-to dealer and ship-to an address not in the dealer's state. The Dealer invoices its customer separately and charges the relevant sales tax. 

    Our client normally invoices the dealer and doesn't charge tax because our client has an exemption certificate. When our client sells and ships directly to consumer, our client collects the correct tax from the consumer via Avalara.

    Here, our client needs to invoice the dealer without charging ANY sales tax even though the ship to is in another state; the dealer collects that out-of-state tax when its customer pays. 

    We apparently lost the knowledge of how to get Avalara to behave correctly in the case where the bill-to address has an exemption, but the ship-to is out of state and does not.

    What are we missing?



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    Jerry Norman
    Smartbridge Partners
    (512) 653-7498
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  • 2.  RE: Avalara Drop Ship Challenge

    Posted 07-29-2025 09:54
    Edited by Madeline Stefanou 07-29-2025 09:54
      |   view attached

    If they are "not" using Cert Capture, and only using Avalara AvaTax, then on the totals tab, they need to add an "exception" for that sales order.  I suggest adding a Customer Pop Up Memo that reminds the user that if for "resale" and a "drop ship" they have to go to the total stab and key "something" in as an exemption. They can use the word "drop ship" or the letter "x" or the SO Order Number as the exemption.  That will kick it over into taxable but exempt from collecting in that state.  If they use Cert Capture, they they may need to talk with Avalara Support on how to further set this up so it works automatically.  I attached an image. 



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    Madeline Stefanou
    RKL eSolutions, LLC
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  • 3.  RE: Avalara Drop Ship Challenge

    Posted 07-29-2025 10:21

    YIKES!!!!

    That is a lot of work for the user to remember to do.

    Can this be scripted?



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    Jeff Schwenk
    Owner
    Bottomline Software, Inc.
    Waynesboro VA
    (540) 221-4444

    Improving bottom lines for over 25 years!
    ------------------------------

    Original Message


  • 4.  RE: Avalara Drop Ship Challenge

    Posted 07-30-2025 00:46
    If they are using ECM (formerly CertCapture), and the customer has a valid certificate for that state, it is exempt. To make any part of that Order/Invoice taxable, enter the Entity Use Tax code TAXABLE on the Lines. However, the EUC will be ignored if that state is enrolled in SST.

    Bob Pfahnl
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    Bob Pfahnl
    Sr. Business Analyst (GM Silicon Valley)
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    Original Message


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