How to Calculate Sales Tax in SYSPRO
Avalara AvaTax connects easily with SYSPRO to deliver a robust sales tax automation tool.
If you are a business running SYSPRO, 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 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 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'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 Go Live 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 on the AvaTax admin console. Here on the home tab this is where you can find information and resources for setup, configuration, as well as training and documentation. More importantly though, we're going to come over here to the organization tab. Here on the organization tab this is where you'll set up your company, or set of companies, that will be using AvaTax for sales tax calculations. And finally most importantly, we're going to come in here to the Nexus button, clicking on Nexus and going into the United States. This is where I can go in and set the state, or set of states where I wish to collect tax. Clicking save will then record that information within my account.
Next I'll come over here into the SYSPRO application itself. The first setup element is going to be over here on General Setup in my tax options. I'll come over to the US third party tab, and by adding in AvaTax Web for my interface type, this is where it will identify that AvaTax is the sales tax engine for SYSPRO. Clicking save will record that information. AvaTax is now the primary tax engine to perform all SYSPRO tax calculations.
I'm going to jump over here into Sales Order Entry, select a customer, put in a purchase order number for that customer. And then I'm going to drill down a little bit and come to the Ship to address. The Ship to address will now be the primary piece of information to drive your sales tax calculation. I no longer have to setup a variety of tax schedules, and assign those tax schedules to my customer records. Using AvaTax will leverage that address to perform that calculation.
I'm going to move over here to AvaTaxRates.com. Using the street level address, Avalara has geospatial technology that takes that street level address and identifies the specific tax jurisdiction that surrounds that. Avataxrates.com demonstrates that. If I put in my street address of 8500 east Colfax in Denver, Colorado, AvaTaxRates takes us to that particular address and indicates that it is in Denver Colorado returning a 7.62% sales tax rate. If I merely just go down the street, you'll see that I actually get into Aurora, Colorado returning 8% sales tax rate. And even more interesting, if I go directly across the street, I'm still in Aurora Colorado, however, I'm now using an 8.5% sales tax rate. Using Avalara's geospatial technology, and the rooftop address, we can determine the tax rate at this level of detail. Using mere zip five or zip nine to return tax rates will never get to this level of granularity. Moreover, we can also use latitude and longitude coordinates to identify the exact place on the map. Avatax geospatial technology will then determine the tax rate surrounding that lat-long position.
Returning here to SYSPRO, I'll continue with my sales order. I'll add a line, select the stock code associated with the product that my customer wishes to purchase. I'll select the quantity ordered, and upon hitting save, AvaTax will now perform the tax calculation. If you look up here under my order totals, you'll see that AvaTax has returned a dollar and 89 cents worth of sales tax, based upon the information entered at the line level and the street level address. When this order converged to an invoice, the AvaTax Calc service will record that transaction permanently so that you can get reporting at the sales tax detail level. Generating one of my sales tax reports, you'll the see the power of AvaTax and the detail that we collect. Here I can identify the state tax that was collected, all my county taxes, and any city or special tax jurisdictions. And that's AvaTax for SYSPRO in a nutshell.
I should point out, the real power is in 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 belief the real relief comes with off-loading, 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'll never have to worry about sales tax again.