Through our Avalara integration, you can automatically calculate Sales Tax rates for your transaction. Avalara will take into account among others:
- The type(s) of products that you are selling
- The ship-from location of the products
- The ship-to location (customer)
- The type of customer (eg government, private entity etc)
- The resale certificate of the customer
Additionally, Avalara's powerful address validation feature, will help you never ship an item to the wrong location.
The Avalara integration is not enabled for all accounts. Please contact our support team if you would like it enabled on your account.
Setting up Avalara
Create your Avalara account
Sign up to Avalara here: https://www.avalara.com/us/en/index.html
The Avalara team will help you setup and categorize your products and your customers based on your industry.
Create additional fields for products and customers
Under Settings > Extra fields create the following fields (for your customers and products)
Name: TaxCode (Avalara), View: Product, Type: Small Text - This field will be used as the item tax code for Avalara
Name: Customer Code (Avalara), View: Customer, Type: Small Text - This field will be used for matching created customers in Avalara
Name: Entity Use Code (Avalara), View: Customer, Type: Small Text - This field will be used for calculating tax based on the customer's entity code (see Avalara docs)
Name: Exemption Certificate Number, View: Customer, Type: Small Text - This field will be used for customers that are tax exempt
Connect your Avalara account
Login to your Avalara account and click on Settings > License and API keys and click to Generate license key
While on B2B Wave, click on Settings > Profile > Integrations and enter your Avalara Account id and your License key in the boxes provided
After doing so, click on the Test connection and select company button to see if the credentials are valid. Do not forget to select whether you are using Avalara's Sandbox (test) or Production environment
If the connection is successful, you should be presented with the company that you've setup in Avalara.
Note: At the moment, B2B Wave only supports a Sales Order transaction to be used for tax calculation. Your accounting solution/ERP should handle the invoicing.
Fill in the additional settings for Items, Customers and Shipping. The additional settings indicate the fields that will be used from B2B Wave when sending data to Avalara, and default values that will be used when those fields are empty.
Items: You should set the Tax Code field that will be used (the one that we created before) and the Default Tax Code that will be used if there is no tax code set for this item
Customers: You should set the Entity Use Code field that will be used (the one that we created before), the Avalara Customer Code, and the Exemption Certificate field. Please note that for the Avalara Customer Code, you can also use the customer Reference Code field. This is useful if this value is common among B2B Wave, Avalara, and your accounting/ERP solution
Shipping: You should set the shipping Tax Code value (same for all transactions) and a Shipping SKU.
Import values to the newly created fields
You might need to update your products' tax codes and your customers' tax codes, Avalara Customer Code, and Exemption Certificate number. B2B Wave's import functionality already supports updating those additional fields.
How the integration works
While on the order review page, the orders' taxes are calculated. The customer can click on the magnifying glass and see a detailed analysis of the taxes that have been used based on their parameters.
Note: Sales taxes will also be re-calculated at the final step of the order submission
Viewing calculated sales tax
While reviewing an order, you can also click to see how sales taxes were calculated for a specific order
While viewing a customer, you can validate their address by clicking on the Validate address with Avalara button. This feature is very useful when you get new customer applications and you want to validate their shipping address and ensure that sales taxes are calculated as accurately as possible.
If the address is valid, Avalara might suggest a few changes (eg detailed postal code, or different spelling of the address). You can choose to keep the existing address or Avalara's suggestion. As long as you are presented with this option, it means that your address is validated.
For any questions or suggestions, please reach out to our support team and we'd be more than happy to help.