This guide is intended for Duggal Visual Solutions general users specifically. Information herein may contain customizations and particulars specific to the Duggal aACE system. Click this link for the General aACE Software aACE 5 Knowledge Base.
Settings to Capture Sales Tax Appropriately in aACE
Steps for AvaTax Integration
aACE+ Avalara AvaTax integration addresses your sales tax challenges with a cloud-based service that calculates sales and use tax, manages exemption certificates, files returns, and remits payments across North America and beyond.
For more in depth information on AvaTax integration with aACE, go to http://aace5.knowledgeowl.com/help/setting-up-avatax . For your aACE+ AvaTax integration, proceed with the following steps:
- Create your AvaTax account - done
- Configure aACE accounting preferences - done
- Configure aACE office settings
- AvaTax Co Code set to 'DEFAULT' for all offices (This coincides with our sandbox account. We will need to set this to 'DVS' for the live system.
- Configure aACE tax profiles - (see below for Duggal-specific details)
- Configure aACE line item code settings
- All Line Item Codes have Shipping Enabled
- Presently Line Item Codes ILMA and LB223 need to have Enable Avatax checked. All others are enabled.
- The Optional Code is blank for all Line Item Codes except six installation-related codes populated with SI020000:
Note: The purpose of this process is to help ensure you are not charged for unneeded tax data requests. Avalara charges for each request that is submitted. If a certain office, line item code, or tax profile should not be taxed, there is no need to request tax data for it. The time you invest in configuring your AvaTax integration can reduce your expenses.
Configure Tax Profiles
Proposal
- Create new Tax Profile: AVA. This Profile will be Avatax Enabled and set as the Default.
- Keep active Tax Profile OUT. This profile will be associated to all Postal Codes contained within the states Duggal does NOT have nexus in. When one of these postal codes is used, no calculations are submitted to Avalera.
- Keep active Tax profile RES00. used for Resale/ Exempt Companies. When used, no calculations are submitted to Avalera.
- All other 6974 Tax Profiles are deactivated unless there is a reason to keep any.
The Tax Profiles that are to use Avatax to calculate rates should have the AvaTax checkbox checked.
Other Profiles may be kept in use and NOT use AvaTax to determine sales tax rates. If AvaTax is not checked, the Profile's default rate logic is used. If applied in an Order, the default profile rate will be applied.
RESALE/EXEMPT PROFILE (ZERO RATE)
If a Company has a Tax profile assigned to it, the profile will override any default logic upon creating the Order. Setting a Company record's Tax Profile should be limited to Resale and Exempt clients. The documentation to set these profiles is managed in the Accounting Department.
OUT OF STATE PROFILE (ZERO RATE)
If a zip code not in New York or California is referenced in an Order, the related Sales Tax is calculated using the system default Tax Profile: OUT - "OUTOFSTATE". The rate set in this Profile is zero, so no tax is added to the order.
EXCEPTIONS
Exceptions in Tax Profiles are Line Item Codes that are taxed differently than the "default rate" of that Profile. Avatax plus the Avatax code assigned to the Line Item Code should replace this for Avatax enabled Profiles. Fixed Rate Profiles still require this table to be entered and kept up-to-date.
Legacy Tax Profiles
DEFAULT TAX PROFILES
There are three Default Tax Profiles: one for each state (CA and NY) in which Duggal has a presence, and one out-of-state. (Oregon does not have sales tax, so it is treated as out-of-state.)
Which of these three default Tax Profiles is used depends on the zip codes entered in the related delivery addresses. See Calculating Sales Tax to better understand which addresses influence tax calculations.
Zip Codes for New York and California are entered into the aACE database. Each Zip code is associated to a Tax Profile, either DEFNY (New York Default) or DEFCA (California Default).
aACE uses this relationship to determine if Avatax is called for a Sales Tax Rate, or a Profile's set Rate is used instead.
The DEFNY and DEFCA Tax Profiles have the Avatax checkbox checked. This means when an Order references these Profiles, Avatax is called to determine the appropriate Sales Tax Rate (based on the location of delivery and line item code categorization).
All other Tax Profiles do NOT have the Avatax checkbox checked, so their default rates are used instead of calling Avatax.
If a California or New York zip code is referenced in an Order, the related Sales Tax is calculated using Avatax and the Tax amount is credited to the General Ledger Account referenced in that Tax Profile. California and New York have separate General Ledger Tax Accounts.
FURTHER LEGACY FIXED RATE PROFILES
Prior to Avatax being activated, the fixed rate Tax Profiles: DEF, NY Counties, and CA zip codes/counties were used. If a Profile was assigned to an Order or Order Line Item, tax would be calculated based on the fixed rate in the Profile. This will still work and if one of these Profiles is used, it will override any default or avatax logic.
With Avatax, these are no longer required and should be avoided except in special circumstances.
