Manage Tax Services (Avalara)

Sales Tax Automation services such as Avalara provide sales tax automation software to get the business tax compliance done right. It’s tax automation for businesses with real-time tax calculations.

Tax Automation services integration with Xoro will help your businesses manage the complex rules and regulations related to transactional and indirect taxes.

Currently, Xoro supports Avalara to get automatic Sales tax calculations. However, more services will be added in the future.

To manage all your tax-related services, go to Menu > Utilities > Manage Tax Services

Let us find out how the Avalara Tax Service works within the Xoro system.

Step 1: Generate Credentials

A license key is required to connect Xoro to Avalara Tax. If you generate a new license key, update it in Xoro because your old license key won’t work anymore.

To generate a License key follow the steps below:

• Login to your Avalara account.

  

  
• Add/Reset the License Key.

  

  

  • You will receive the credentials through your registered email.

  Once the credentials are generated you can use them in Xoro for the integration process.

Step 2: Integrating Avalara with Xoro

For setting up the “Tax Services” in Xoro, follow the steps underlined:

• Navigate to the “Manage Tax Services” module in Xoro.

• Under the “Add Services” tab, Connect Avalara.

  
• Fill in the Configuration details:

  • Account Name: Give a Name to the Avalara Account.

  • Ava Tax Account ID: Fill in the unique Ava Tax Account Id (Numeric).

  • Ava Tax License Key: Fill in the generated License key (Alpha-Numeric).

  • Ava Tax Company Code: Provide the Ava Tax Company Code.

  • Connection Type: Select the connection Type: Sandbox/Production.

  • Enable Ava Tax: Avatax will be used for filing the Tax in the system if this setting is enabled. If this toggle button is turned Off, the configuration details will still remain in the system, but the tax filing through Avalara will be disabled.

  • Record Document: Turn this setting ON, if recording the Sales Tax documents is required in Xoro.

  

The configuration details can be validated by testing the connection

• If the Account ID/Licence key/Connection Type details are correct, the Account connection would succeed.

  
• Save the Avalara Tax Configuration.

  
• Once Avalara is integrated into Xoro, it will be shown under the “Active Services”.

  
• The saved configuration can be edited/deleted or set as inactive later if required.

  
• On the other hand, if incorrect credentials are filled in, the system will give an error.

  

  

Step 3: Validate Workflow with the added Tax Services

When the Avalara Tax service is configured and enabled in Xoro, all the Tax calculations will be based only on the Avalara integration.

• The modules like Sales Order, Estimate, Sales Receipt, Invoice Credit Memo will have the option to calculate the Sales Tax based on the Avalara Tax codes.

  
• In the Item module, under the “Tax Settings” tab, fill in the Tax Code. (Item taxable on Sale).

  
• While creating an Order Calculate Tax before saving the Sales Order.

  
• The system will automatically calculate the taxes.

The Customers can be set as Tax exempted or Taxable by defining the “Entity Use Code” under the Sales Tax tab of the Customer module.