Use Tax Calculation
In MYOB Acumatica, use tax calculations can be performed by the Avalara AvaTax service in AP bills and purchase orders. This topic provides an overview of the supported document types, along with key setup steps and important details about the process.
Overview of the Use Tax Calculation Setup
In MYOB Acumatica, the calculation of use taxes is performed in the following documents:
- Documents of the Bill type created on the Bills and Adjustments (AP301000).
- Purchase orders of the Normal, Drop-Ship and Project Drop-Ship types created on the Purchase Orders (PO301000) form.
The process of use taxes calculation performed by the Avalara AvaTax service in MYOB Acumatica is described in the following example. This example involves use tax calculation performed in an AP bill.
- On the Tax Zones (TX206000) form, create a tax zone specifically for the external tax provider. In the Summary area of the form, select the External Tax Provider check box and then select Use Taxes in the Calculate in AP box.
- On the Bills and Adjustments form, create a bill. On the Financial tab, in the Vendor Tax Zone box, specify a tax zone with the Use Taxes setting. Note that the tax zone can be specified in the vendor settings. In that case, the system populates the Vendor Tax Zone box automatically. Save the AP bill.
- When an AP bill is saved, MYOB Acumatica sends a request to the Avalara AvaTax service. The service returns the applicable use taxes, which are added on Taxes tab of the Bills and Adjustments form.
- The returned use taxes are also added to the Taxes (TX205000) form in MYOB Acumatica
The following table lists the settings of use taxes returned by the Avalara AvaTax service and added to the Taxes form MYOB Acumatica.
| UI Element | Value |
|---|---|
| Tax ID | The taxName value from the tax response of Avalara + the
USE suffix |
| Calculation Rule | Exclusive Document-Level (read-only) |
| Description | External Tax Provider State tax for + jurisName from
the tax response |
| Cash Discount | Reduces Taxable Amount (read-only) |
| Tax Type | Use (read-only) |
| Exclude from Tax-on-Tax Calculation | Selected (read-only) |
| Tax Agency | The value of the Tax Agency ID box specified on the Tax Zones form |
| Not Valid After | Empty (read-only) |
| Partially Deductible VAT | Cleared (read-only) |
| Reverse VAT | Cleared (read-only) |
| Statistical VAT | Cleared (read-only) |
| Include in VAT Exempt Total | Cleared (read-only) |
| Include in VAT Taxable Total | Cleared (read-only) |
| Pending VAT | Cleared (read-only) |
| Direct-Entry Tax | Cleared (read-only) |
| GL Accounts tab | |
| Tax Payable Account | The value specified in the Tax Payable Account box on the Tax Agency tab of the Vendors (AP303000) form |
| Tax Payable Subaccount | The value specified in the Tax Payable Subaccount box on the Tax Agency tab of the Vendors form |
| Use Tax Expense Account | Selected |
| Tax Expense Account | The value specified in the Tax Expense Account box on the Tax Agency tab of the Vendors form |
| Tax Expense Subaccount | The value specified in the Tax Expense Subaccount box on the Tax Agency tab of the Vendors form |
Line-Level Tax Calculation in AP Bills
In AP bills, when the Pay by Line check box is selected in the Summary area of the Bills and Adjustments (AP301000) form, the taxes calculated by the Avalara AvaTax service are distributed across the line items on release of the bill and shown in the Tax Amount column on the Details tab of the Bills and Adjustments form. The tax amounts are included in the balance of each respective line item and shown in the Balance column on the Details tab.
This functionality is available only if the Payment Application by Line feature is enabled on the Enable/Disable Features (CS100000) form.