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If you have the option of calculating tax either by using FinancialForce's internal tax calculation method, or by using Avalara AvaTax, you can set up your org for dynamic tax calculation. This involves setting a default tax engine on the companies in your org, then configuring Billing Central to use a company's default tax engine for automatic tax calculation. When a billing contract is activated and billing documents are created, Billing Central's automation process then calculates tax using whichever tax engine is set as the default on the company in which the documents are created.
A company's default tax engine can be either FinancialForce's internal tax calculation method, or Avalara AvaTax. You set the default tax engine in the company tax information.
To set up dynamic tax calculation you must:
- Complete the setup required for Billing Central to calculate tax using FinancialForce. For more information, see Setting up Tax Calculation Using FinancialForce.
- Complete the setup required for Billing Central to calculate tax using Avalara AvaTax. For more information, see Setting up Tax Calculation Using Avalara AvaTax.
- Create company tax information records for the different tax regimes used by companies in your org. For more information, see
- Assign a company tax information record to each company in your org.
- Configure the Billing Central Automation feature to automatically calculate tax using the default tax engine. If you also configure the option to automatically complete billing documents, you can enable committing tax to Avalara AvaTax as part of the automatic completion process for companies that have Avalara AvaTax as their default tax engine. For more information, see Setting up the Automation of Billing Central Processes.
By setting up dynamic tax calculation, you do not have to use the same tax engine for all your billing documents, and you reduce costs because Avalara AvaTax is not used when FinancialForce's internal tax calculation method is appropriate.