Understanding Avalara AvaTax Usage

Description

In this video we'll review how Avalara AvaTax usage is calculated and how it impacts your bill.

At Avalara we know that no two businesses are alike. So whether you're a vast global enterprise or a neighborhood corner store, there's a flexible Avalera Avatax pricing option that's just right for you, and we'll work with you to choose the right pricing level for your business that's based on your anticipated Avatax usage. So how do we calculate Avatax  usage? By counting transactions.


What counts as a transaction? Primarily, transactions are counted in one of two ways, either based on your API call volume, or the number of documents you committed. So let's define how API call volume and documents committed or calculated. An API call is a call or ping made to Avatax for tax calculation.


Every ten calls equals one transaction. A document is typically an invoice in a state where you calculate zero tax and recount it whenever you commit an invoice or alter one that's already been committed.


We assume each document is thirty five invoice lines or less, but if your documents average more than that in a single day, we just divide all your invoice lines by thirty five to on the number of documents, whichever one of those is higher on a given day, documents, or API calls divided by ten is what we use to calculate your transactions. There are other items that can affect your bill too, like address validation and international sales. But for most companies, API calls for documents are probably the vast majority of your transactions. That's how most usage works for most Avatax customers. Billing can vary a lot based on your type of company. For example, call centers and ecommerce companies typically get billed based on their API call volume. Manufacturers, and software companies are more often billed based on the number of documents. So whether you have a lot of transactions or just a couple, we can help you find the pricing level that's the right fit for your company. No matter how big you grow, and with a different level will give you a better value, we'll let you know. Have more questions? Check out your terms and conditions for all the fine details around usage and billing, or reach out to your Avalara account manager