Configuration Setup
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.
Important Notes:
Regenerating the license key invalidates the previous key
Always update the latest credentials in XoroERP
Integrating Avalara with XoroERP
Navigation
Menu → Utilities → Manage Tax Services
Add Service
Click Add Services
Select Connect Avalara
Configuration Fields
After connecting Avalara in the Manage Tax Services module, you will see a set of configuration options. These settings help you control how tax is calculated and saved when you create transactions in XoroERP.
Account Name
Internal reference name
AvaTax Account ID
Numeric ID provided by Avalara
AvaTax License Key
Authentication key
AvaTax Company Code
Company identifier in Avalara
Connection Type
Sandbox (testing)
Production (live)
Country
Defines the tax jurisdiction
Functional Settings
Each setting affects what happens when you click Save on a transaction and review the tax in the Tax Summary pop-up.
Enable AvaTax for Sales
Use this setting to decide whether Avalara should calculate tax for your Sales transactions.
When this option is enabled, XoroERP automatically uses Avalara to calculate tax whenever you create or save Sales documents such as Sales Orders, and Invoices. You do not need to manually manage tax rates, as Avalara will calculate the correct tax based on location, product type, and customer details.
When this option is disabled, Avalara will not be used for Sales. In that case, tax will be calculated using the default or manually configured tax settings within XoroERP.
Toggling this ON means the system will automatically calculate accurate tax for your sales order transactions.
Enable AvaTax for Purchase
This setting controls whether Avalara should be used for Purchase transactions.
When enabled, XoroERP calculates tax automatically for Purchase Orders using Avalara. This helps ensure that the tax applied to purchases is accurate and aligns with the applicable rules for vendor location and item type.
When disabled, tax for Purchase transactions will not be calculated using Avalara, and you will need to rely on manual or default tax settings.
Toggling this ON means the system will automatically calculate accurate tax for your purchase order transactions.
Calculate Tax
When the Calculate Tax option is enabled, XoroERP automatically calculates tax using Avalara. Whenever you save a transaction, the calculated tax is displayed in the Tax Summary pop-up.
When this option is disabled, XoroERP does not use Avalara, and tax is instead handled using the ERP’s default or manually configured tax setup.
In simple terms:
Enabled → Tax is calculated automatically using Avalara
Disabled → Tax is managed within XoroERP without Avalara
Record Document
This setting determines whether the transaction should be saved in Avalara after tax is applied.
When enabled, once you review the tax in the pop-up and click Apply & Save, the transaction is recorded in Avalara. This is important for maintaining proper tax records and for future tax reporting and filing.
When disabled, the system will still calculate and show tax, but the transaction will not be stored in Avalara. This means it will not be considered for tax reporting purposes.
Toggling this ON means that after you confirm the tax, the transaction is saved for official tax reporting.
Tax Item Per State
This setting is useful if you deal with transactions across different states or regions.
When enabled, XoroERP allows tax to vary for the same item depending on the state or location where it is being sold or delivered. Since tax rules can differ from one state to another, this ensures that the correct tax is applied based on the destination.
When disabled, the same tax logic is applied to an item regardless of the state, which may not always be accurate for businesses operating in multiple regions.
Toggling this ON applies different tax rules for the same item based on where it is sold.
How These Settings Work Together
When you create a transaction and click Save, here’s what happens:
XoroERP checks whether Avalara is enabled for that type of transaction (Sales or Purchase)
If enabled and Calculate Tax is turned ON, the system calculates tax automatically
The Tax Summary popup appears showing the calculated tax
After reviewing, you click Apply & Save
If Record Document is enabled, the transaction is also saved in Avalara for reporting
Quick Understanding
Enable AvaTax for Sales → Use Avalara for Sales transactions
Enable AvaTax for Purchase → Use Avalara for Purchase transactions
Calculate Tax → Automatically calculate tax when saving
Record Document → Save the transaction in Avalara for reporting
Tax Item Per State → Apply different tax rules based on location
Toggle Behavior Summary
ON
OFF
Tax is calculated automatically using Avalara. It is not recorded in Avalara.
ON
ON
Calculates and records using Avalara.
OFF
ON
Not recommended
OFF
OFF
Avalara not used
Test Connection
Click Test Connection
System validates:
Credentials
Environment
Company mapping
Save Configuration
Saved configuration appears under Active Services
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