Setting up Tax Calculation Using Avalara AvaTax

To set up tax calculation on billing documents using Avalara AvaTax:

  1. Enable external tax calculation on your Salesforce orgClosed Salesforce organization. See Enabling External Tax Calculation.
  2. Create a summary tax code that represents the summarized tax on a billing document line. See Creating a Summary Tax Code.
  3. Enter the summary tax code on the BC Tax Calculation Settings tab or the Billing Central Task Launcher tab. See Avalara AvaTax Tax Calculation Settings.
  4. Confirm whether you want to automatically create tax breakdown records when calculating tax with Avalara. These records provide additional information about tax breakdown by jurisdiction. See Avalara AvaTax Tax Calculation Settings.
  5. Confirm whether you want to calculate tax with Avalara using default or custom mappings. See Avalara AvaTax Tax Calculation Settings. If using custom mappings, check or update the mappings available from the Manage External Tax Calculation Mappings link on the Billing Central Task Launcher.
  6. Ensure that the relevant records for the following objects contain up-to-date tax information:
    • Account and Account Extension
    • Product and Product Extension
    For more information, see Account and Product Fields for Use with Avalara AvaTax.
  7. Validate account and company addresses in your Salesforce org. See Validating Addresses for Sales and Use Tax Calculation.
  8. Link each company to its corresponding company in Avalara AvaTax by setting the Code field on your company's detail page to the code of the company in Avalara AvaTax. If this Code field is left blank, transaction data for taxed billing documents will be recorded against the default company in Avalara AvaTax.
  9. To determine how many records are processed at once, set the appropriate value in the Calculate Tax with Avalara: Scope Size field in the Background Process Settings custom setting. See Background Process Settings.
    Note:

    To calculate or commit tax for multiple billing documents when the ERP/Logging.ERP Core.Avalara publication is enabled in your org, ensure that the value is 1.

For information about calculating tax using Avalara AvaTax, see Calculating Tax on Billing Documents Using Avalara AvaTax.

You can set up Billing Central to calculate tax automatically using Avalara AvaTax. For more information, see Setting up the Automation of Billing Central Processes.