How to Calculate Sales Tax in Sage 300

Avalara AvaTax connects easily with Sage 300 to deliver a robust sales tax automation tool.

If you are a business running Sage 300, 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 Product Integration here at Avalara. Not only am I a recovering accountant, 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 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 the well known ERP and financial applications, as well as e-Commerce, Point of Sale, and Mobile Systems. So regardless of this platform or systems that you're 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 GoLive team. They're going to help you set up your Admin Console and connect to your financial application or ERP system. Next, you're 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'll start here with at the AvaTax Admin Console. Here on the home tab, is your AvaTax Support Center. It includes training access, as well as product documentation. Moving over here to the organization tab, this is where you will set up your company or set of companies that will be using AvaTax for sales tax calculation. Most importantly, I'm going to come over here to the Nexus section.

In Nexus, I will be able to define the state or set of states where I wish to collect sales tax. Completing that and pressing save, I'll jump over into the Sage 300 application, specifically going into my customer record. Here, I'm going to go over into the invoicing tab. And unlike using native sales tax functionality for Sage 300, I no longer have to define tax groups and jurisdiction records that make up these tax groups. I select one AvaTax sales tax group, and that will allow me to use the AvaTax integration, and AvaTax will determine the appropriate tax to apply for each transaction.

Back here on the address record, putting in a new address and then pressing save, will generate an address validation. It took the address that I had entered in, 8500 East Koufax, validated it against the US postal service preferred format, and returned the validated address normalized in that format. Pressing accept, will then update the record with that information. AvaTax address validation is extremely important, because we are going to use the specific address to perform the tax calculation for any transaction.

Going to, this identifies and shows the way that AvaTax geo-location technology assigns tax jurisdictions. My 8500 East Koufax address landed me here in Denver, Colorado, which would return a 7.62% tax rate. Although you can see just directly down the street, I would move into Aurora, Colorado at an 8% tax rate. And where it gets really complicated is directly across the street from that address at Koufax, is another Aurora, Colorado sales tax jurisdiction that is now at 8.5%. Using Zip 5 or even Zip 9, technology would not get you to this level of accuracy, history, and a rooftop address will always provide an accurate tax calculation from AvaTax.

In addition to using street address to identify the specific tax jurisdictions applicable for a transaction, AvaTax now provides GPS functionality to leverage a long coordinate to return the same tax jurisdictions as an address would.

Going back into Sage 300, I'll open up my AvaTax order entry window. I'll choose my customer, going down the line, I'll select the product that my customer wishes to purchase, I'll tab through, identify the quantity that they wish to purchase, and then moving into any tab, in this case I move to taxes tab, will perform a tax calculation, in this case generating $5.16 worth of sales tax from this transaction. Once this transaction posts, the AvaTax service will then capture that transaction, and where you'll see the strength of AvaTax coming in, is generating reports on either a monthly, quarterly, annual basis, will capture that transaction information and report it in such a fashion that you can see the state, where tax has been collected, as well as any county transactions and any city, or special tax jurisdictions have been collected.

And that's AvaTax for Sage 300 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 the 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's never been a more complicated time in the world of sales tax compliance. That complication means, there's never been a better time for sales tax automation. With AvaTax, you will never have to worry about sales tax again.