How to Calculate Sales Tax in Intacct
Avalara AvaTax connects easily with Intacct to deliver a robust sales tax automation tool.
If you are a business running Intacct, it's easy to automate your sales tax compliance process using AvaTax. This demo give you a preview of the process.
Hi, I'm Mark Wilhelm, director of project integration here at Avalara. Not only am I a recovering accountant, but I was also one of the very early employees here at Avalara. I want to give you a quick tour of AvaTax, but first, let me share with you a couple of quick facts. Each and every day, our tax decision engine processes millions of sales tax calculations, and when it comes to filing and remitting, our customers rely on Avalara technologies and services to process literally hundreds of thousands of sales tax returns, each year. What's more, Avatax integrates with virtually all of the well known ERP and financial applications, as well as e-commerce, point of sale, and mobile systems, so regardless of the platform or systems that you are running, you can manage all of your sales tax issues and get a complete view of your sales tax liability from one cloud based source, the AvaTax admin console.
Let me explain how easy it is to get started with AvaTax. First, you'll get a call from our go live team. They are going to help you set up your admin console, and connect to your financial application, or ERP system. Next, you are going to map your products to AvaTax tax codes. For most of our customers, this is a fast process using our built-in tools. Let me show you the remaining steps right here in the application itself.
First we will start here on the AvaTax admin console. Here on the home tab is your Avalara support center. This provides you access to everything AvaTax, including training and product documentation. Moving over to the organization tab, this is where you will set up your company, or set of companies that will be running Avatax, for sales tax calculation, and most importantly, over here in the nexus settings, this is where you'll going to go in and define where you wish to collect sales tax. Coming in here, selecting edit, will allow you to collect the state, or set of states, where you wish to collect tax. Pressing save will then remember that for your AvaTax account.
Moving over into the Intacct application, first I will start here in company, and go down into my subscriptions, moving down and selecting the Avalara tax section, and configure will allow me to put my account and license key that will give me access to the AvaTax calc service. This is also where I will select the countries where tax will automatically be calculated, within the boundaries set by the nexus set up on the AvaTax admin console. Avalara will use the specific shipping address to identify the sales tax calculation to be performed. We will go down to the rooftop level to determine the right tax rate and correct taxability rules.
Moving over here to the avataxrates.com website, identifies the reason that Avalara uses a rooftop address to identify the correct taxing jurisdiction and sales tax rate to return for all of your transactions. Using my 8500 East Colfax address in Denver, Colorado, you'll see here on AvaTax rates places with a 7.62% sales tax rate. However moving just down Colfax avenue, a couple blocks, you'll see that I move into Aurora, Colorado, at an 8% rate. But even more important, directly across the street, still in Aurora, Colorado, I pull in different taxing jurisdictions, and I am now using an 8.5% sales tax rate, for my tax calculations. Using just a zip 5 or even a zip 9 sales tax calculation, will never get this level of accuracy. Now not only does Avalara support using a rooftop address to identify a taxing jurisdiction, but we can now enable using GPS coordinates and the associated latitude and longitude, to identify the specific taxing jurisdiction for any taxing calculation.
Moving here into the Intacct application again, I'll come in here to the order entry, and I'll go ahead and generate a sales invoice. I'll select my customer, identify the product that that customer is purchasing, and then upon hitting post or save, or just going down here and clicking calculate subtotals, AvaTax will perform the tax calculation, returning a 7.62% sales tax rate, and calculationg tax to include state of Colorado, Denver City tax, and two special tax jurisdictions.
Upon hitting the post button, this will save the calculation permanently within the AvaTax service, and here is where the true strength of the AvaTax tax calculation and the AvaTax sales tax automation service comes into play. At any point in time for any of the transactions that I've saved, I can generate a tax report. On this tax report, it will identify specifically where I've collected tax, including any state level tax collected, any counties, and any cities or special tax jurisdictions.
And that is the AvaTax for Intacct integration in a nutshell. I should point out, the real power isn't how the AvaTax family of products works together. Beyond AvaTax calc, many of our customers love the way that AvaTax certs brings order to the chaos of the exemption certificate management process. And many of our customers believe that real relief comes with uploading, filing, and remitting to our AvaTax returns product, where you can leave that recurring headache 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.