Avalara powers millions of businesses worldwide
- Connect AvaTax for Accounts Payable to ERP and P2P systems like Coupa and SAP Ariba
- Ingest purchase transactions and vendor-charged tax via real-time integrations or batch imports
- Unify and standardize AP data across purchasing systems automatically using AI-driven mapping
- Leverage AI-powered item classification for purchase taxability
- Configure rules by vendor, GL account, or item category
- Set thresholds and variance rules to flag discrepancies
- Receive AI-driven rule recommendations and clear tax summaries for each transaction
- Apply MPU and GL allocation rules with AI-driven recommendations that learn from purchase patterns to refine thresholds and taxability rules over time
- Keep ERP, P2P, and returns in sync with shared tax logic and GL postings
- Apply the correct sales tax on purchases and avoid overpayments
- Support separate logic for uploaded transactions and real-time integrations
- Keep tax determinations synchronized with AP and procurement systems
- Provide vendors with exemption certificates through Avalara Vendor Exemption Management
- Leverage AI-driven dashboards with dynamic visualizations of use tax variances and vendor over-/undercharges
- Use conversational AI for Accounts Payable reporting, audit prep, and risk insights
- Monitor consumer use tax variances and exception trends across AP transactions to focus audit reviews where they matter most
- Apply calculated use tax directly to returns and accrual workflows
Apply predefined tax codes that track taxability regardless of the delivery methods in all U.S. states. AI-powered Avalara Item Classification uses product images and descriptions to suggest the right tax code.
Define and manage tax rules across vendors, items, GL accounts, and cost centers in one place — ensuring consistent tax treatment across all purchase transactions.
Review and analyze all AP transactions, regardless of source or processing status, identify variances from over- and undercharged transactions, and take action to automatically accrue use tax on returns or report overpayments for vendor credits and refunds.
Centralize and apply all tax configurations within AvaTax for Accounts Payable to support both real-time and batch transactions through a hybrid design.
Ingest purchase data through batch uploads, APIs, or real-time integrations with AP and procurement systems — supporting hybrid workflows across multiple data sources.
Automatically map and normalize transaction data fields using AI to accelerate onboarding and reduce manual setup effort.
Configure tax logic based on vendor type, GL account, item category, or cost center to reflect how purchases should be taxed across the business.
Allocate tax across multiple jurisdictions based on where goods or services are used, improving accuracy for shared or distributed purchases.
Set tolerance thresholds to automatically flag transactions with tax discrepancies for review, helping prioritize high-risk variances. AI provides rule suggestions for thresholds, variance patterns, and tax treatment based on transaction history.
Use natural language to ask questions about your purchase data; generate custom reports; and maintain a clear audit trail of tax decisions, adjustments, and accruals to support compliance and audit readiness.
Apply calculated use tax directly to downstream filing workflows or returns, streamlining compliance and reducing manual handoffs.
Avalara AvaTax for Accounts Payable is a use tax automation solution that connects to your accounts payable, procurement, or ERP system to evaluate purchase transactions for sales tax accuracy. It identifies undercharged tax, self-assesses consumer use tax, and also flags overcharged sales tax to help prevent overpayments. The solution automatically accrues the tax you owe to the correct jurisdiction, tracks overpayments for vendor credit or tax recovery, and automatically includes accrued use tax in Avalara Returns to streamline reporting and filing. AvaTax for Accounts Payable is built for finance and procurement teams — especially those operating in audit-intensive industries such as manufacturing, construction, retail, distribution, healthcare, hospitality, financial service, and technology — that have outgrown manual processes and fragmented, invoice-by-invoice reviews.
When a vendor invoice enters AvaTax for Accounts Payable through an agentic process, connector to purchasing system, API, or batch CSV upload, the platform checks the tax the vendor charged against Avalara tax content for more than 12,000 U.S. sales and use tax jurisdictions, factoring in jurisdiction, product taxability, exemption status, and any rule you have set up across vendors, GL, cost centers, or variance and tolerance rules. If the vendor undercharged tax, AvaTax for Accounts Payable accrues the use tax variance and adds it to the correct return. If the vendor overcharged tax, the platform flags the overpayment and creates a record you can use to pursue a vendor credit or refund. Configure tolerance and threshold rules to control when transactions are automatically accrued, excluded, or submitted for review. This enables routine purchases to be processed efficiently while focusing reviewer attention on exceptions and higher-risk transactions.
AvaTax for Accounts Payable supports prebuilt connectors to the purchasing system, an open API for custom integrations, agentic workflows through the AvaTax MCP, and various other Avalara agents so you can plug it into the system you already use to process vendor invoices. Certified AP integrations include NetSuite (Basic, OneWorld, and SuiteTax), Microsoft Dynamics 365 Business Central, Microsoft Dynamics 365 Finance, Microsoft Dynamics GP, Microsoft Dynamics NAV, Sage Intacct, Oracle E-Business Suite, Oracle Fusion Cloud ERP, SAP S/4HANA, SAP ECC, and Coupa. If your AP system is not yet on the certified list, you can post purchase invoices to AvaTax for Accounts Payable via the API or upload them with a CSV template, and Avi, our AI assistant, will help map fields automatically using AI-powered data mapping.
Yes. AvaTax for Accounts Payable is built as a hybrid product. Real-time mode posts each purchase invoice to AvaTax for Accounts Payable as it is created in your AP or procurement system, so use tax is calculated and accrued the moment the invoice is captured. Batch mode lets you upload purchase data as a CSV file and our AI will automatically map to required fields. Many customers run a hybrid workflow. For example, real time for ERP-native PO, RO, and purchase invoices, and batch for sources that live outside the ERP. An automated implementation experience lets batch customers upload, complete AI-assisted column mapping, and reach go-live as a self-serve flow.
Use tax management is consistently ranked among the top compliance mistakes state auditors find. AvaTax for Accounts Payable produces an audit-ready trail by recording purchase and taxability determinations made on your purchases. Reviewers can view AI tax summaries that explain, in plain language, why a given decision was made on a transaction. This creates a clear record of overpayments for refund recovery and underpayments accrued for remittance, helping support audit readiness.
Yes, Avalara AvaTax for Accounts Payable works with Avalara Vendor Exemption Management to make it easy to manage exemption certificates for vendors directly within the purchase review workflow. Finance teams can ensure proper documentation is applied at the time of review — reducing the need for manual follow-up or separate tracking. This reduces friction caused by missing or outdated documentation and helps minimize purchasing delays, corrections, and payment issues.
