Setup of Online Integration with Avalara AvaTax

If your company sells multiple types of products across various tax jurisdictions, configuring tax calculation and reporting in MYOB Acumatica, along with keeping tax rates up to date, can be time-consuming and complex. In such cases, you may want to consider integrating with Avalara's AvaTax service to streamline sales and use tax processing online. Since MYOB Acumatica includes built-in support for online integration with AvaTax, setting up this integration is quick and straightforward.

The integration involves tasks that should be performed on both sides: in MYOB Acumatica and in Avalara AvaTax.

Account Configuration on Avalara Website

You can configure the integration with the AvaTax service as soon as you have the following:

• A subscription to the AvaTax service (http://www.avalara.com)
• The license key and password to your organization's account in AvaTax
• The credentials (user name and password) to the AvaTax admin console

In your AvaTax account, you should configure the company structure that corresponds to the structure of branches in MYOB Acumatica, and configure the tax profile for each company in AvaTax (which corresponds to each MYOB Acumatica branch).

For more information, see To Configure Your AvaTax Account.

AvaTax Integration Setup in MYOB Acumatica

To set up the integration with the AvaTax service in MYOB Acumatica, follow these general steps:

1. Establish the connection between MYOB Acumatica and your AvaTax account. Map each MYOB Acumatica branch to its corresponding company in the AvaTax account.
2. Configure address verification in Avalara AvaTax to ensure accurate tax jurisdiction assignments.
3. Create a dedicated tax agency account specifically for use with Avalara AvaTax.
4. Create a tax zone and associate it with the tax agency you have created for use with Avalara AvaTax.
5. Set up the Avalara AvaTax tax codes. Since AvaTax uses hundreds of tax codes for US products and services, you need to configure these as tax categories in MYOB Acumatica as follows:
   • If your company sells a wide variety of products, create a tax category for each tax code in MYOB Acumatica. Consider importing these tax codes using an import scenario, which you can create on the Import Scenarios (SM206025) form.
   • If your company's stock list is small, on the Tax Categories (TX205500) form, create only the necessary tax categories corresponding to the tax codes that apply to your company's products.
   • If a default tax category is sufficient, create one (for example, Taxable) using the Tax Categories (TX205500) form. Create the corresponding tax code in your Avalara AvaTax account and link it to the default tax category in MYOB Acumatica.
6. Specify the Avalara tax zone as the default tax zone for each required customer.
7. Assign a specific tax category to each stock and non-stock item that matches the corresponding AvaTax tax code.

   If you are importing stock item records from another system, include steps for assigning tax categories in your import scenario.

   Tip:

   To simplify tax category assignments for similar products, use item classes defined on the Item Classes (IN201000) form. Once a tax category is assigned to an item class, all items in that class will automatically inherit the tax category and other class settings when created.

For instructions on configuring the AvaTax integration, see To Set Up Integration With AvaTax.