How to Calculate Sales Tax in Dynamics GP

Avalara AvaTax connects easily with Microsoft Dynamics GP to deliver a robust sales tax automation tool.

If you are a business running Microsoft Dynamics GP, it's easy to automate your sales tax compliance process using AvaTax. This demo gives you a preview of the process.


Hi, I'm Mark Wilhelm, director of Product Integration here at Avalara. I'm a recovering accountant. I'm also a very early employee here at Avalara starting back in 2005. I'm here today to talk about AvaTax for Microsoft Dynamics and GP. But first, let me share some facts about the power of AvaTax. Everyday, our tax decision engine processes literally millions of tax sale calculations. And when it comes to filing and remitting, our customers rely on Avalara technologies and services to file hundreds and thousands of sales tax returns each year. What's more? AvaTax integrates with virtually of the well-known ERP and financial applications as well as POS, e-commerce and mobile systems. Say you acquire company that is running a different financial application, no problem. You want your sales force to begin collecting sales tax in the field on a mobile device? No problem. When you begin selling online, no problem. Your admin console is the place is you can monitor all your disparate systems and manage your sales tax compliance in one place.

Let me explain how fast and easy it is to get started in AvaTax. First, you're going to get a call from our GoLive team. They're going to help you start your Admin Console and connect into Dynamics GP. Next, you're going to map your products to AvaTax tax codes. For most of our customers, it's a simple and fast process using the tools we've built into Dynamics GP. You'll either map group of skews or individual skews to your tax codes. Let me show you the remaining steps in Dynamics GP.

Within the AvaTax admin console, we start at the home tab. The home tab is your resource center for everything AvaTax. Moving over to My Organization tab, this is where I've set up my company or set of companies that we'll be running using AvaTax. I'm going to come in here and select my Nexus. And within here, I'll be able to select the state or set of states where I wish to collect select sales tax. Next I'm going to come over here into Dynamics GP, go into my customer card, select my customer. Here's one of the most important elements. I'm going to come down to tax schedule ID. Remove the existing tax schedule. I no longer have to select the city, county or state where I wish to collect sales tax. But come up here, select AvaTax to automatically calculate wherever I have nexus.

In addition to tax calculation, the AvaTax integration provides address validation services. Coming in here, if I edit my existing address or add a new address within my customer record, on completing that entry, I come up to additional, select address validation. We have provided address validation, returning to validated address and normalizing it with U.S. Postal preferred formatting. Clicking accept and save, I have now that information stored within Dynamics GP. More importantly, address validation provides this specific address that AvaTax will use to calculate sales tax.

Coming over here to, powered by AvaTax technology, if I were just merely do a tax calculation using a five-character zip in Commerce City, Colorado, you'll see that I would return an 8.35% sales tax rate. However right across the street, you'll see that sales tax rate changes and becomes 4.85%. Using five-character zip codes to calculate sales tax would never identify that nuance. AvaTax geospatial technology provides the specific information to drill down and calculate sales tax accurately each and every time.

Going back into Dynamics GP, I'll close my customer card. I'm going to go in and create an invoice now. I'll select my customer, tab through my required fields, enter the products or service my customer wishes to purchase. I can now come up here and either by pressing the save button or calculate tax, AvaTax will perform the tax calculation. I have calculated $2,720 on my $32,000 invoice. Pressing save will then capture that information. Probably the most important element, going back to AvaTax admin console, that Avalara brings is upon the end of the month, I can generate sales tax reports that will identify specifically everywhere I've collected sales tax. And using this report, I can then manually create my sales tax returns.

Though I must say, it's even easier if you just turn on AvaTax returns and leave the filing and remitting to us. I hope you found this video helpful. There has never been a more complicated time in the world of sales tax compliance. That complication means there has never been a better time for sales tax automation. With AvaTax, you'll never have to worry about sales tax again.