CONNECTOR ADMINISTRATION

Once your FACTS AvaTax Connector has been installed, you may access the Sales Tax System using access code “TX” from any menu.

Figure 2. The Sales Tax System menu is accessible using access code "TX".

The menu is divided into two sections:

· Setup

· Processing

AvaTax Control F/M (TXF990)

Figure 3. AvaTax Control F/M - Communications tab.

This tab from the Control F/M gives access to login credentials for AvaTax and AvaCert, provides a means to verify connectivity to your Avalara Services and allows you link directly to the web based Avalara Administration Console.

Enter the exact values from the email you received from websales@avalara.com after acceptance of your company’s order.

AvaTax Control F/M - Communications Tab Field Definitions

Button

Definition

Test Connection

Accesses Avalara website and verifies your login credentials. You should get a message below the button with status and if successful, the current version number. It should look similar to this:

Success! Version: 13.6.0.42

Console

Launches your workstation web browser and takes you to the Avalara Console login screen.

Figure 4. AvaTax Control F/M - Options tab.

This tab controls a number of options that control the connector's functionality.

AvaTax Control F/M - Options Tab Field Definitions

Field Name		Definition	Valid Values
Company Code		Identifies the Company Code defined in the Avalara Administration portal. While not required, we recommend using the same company code used by your FACTS system.	Valid up to 20 character alpha numeric value. If left blank, it will use the FACTS company number.
Time Out		The number of seconds to wait from a response from Avalara's servers.	A non-zero numeric value. We recommend starting with 15. If latency is greater than this, an analysis of network speed should be conducted.
Years of History		Enter the number of years to retain detailed history of Avalara response codes for each transaction. May be useful for audits.	A numeric value from 0 to 99.
Calculate Tax	Allows for offline operation if network is down for a period of time. In that event, run "Calculate Taxes" program on documents entered during down period. Note: Cash Receipts adjustments not supported by this feature since they require real time interaction.		Default=checked
Validate Addresses		Enables use of the Avalara address verification service. Uncheck if using the Sequoia Group hosted service.	Default=checked
Auto Commit		Enabling auto update runs the "Commit Invoices to AvaTax" program automatically following the running of tax related registers.	Default=Unchecked
Use Legacy Exempt Flags		Normally set to unchecked when all items have been fully configured to the new Avalara exemption code. If checked, FACTS will honor the customer exempt flag (X) and the item taxable flag.	Default=Unchecked
Upper Case Addresses		Checked-Force address verification to use all upper case. Unchecked-Use mixed case.	Default=Checked
CM Tax Calc Date		Determines which date is used for tax calculations on a Credit Memo.	I-Use Invoice Date M-Use Credit Memo Date
Allow Forced Tax		Even if a customer has a valid exemption certificate on file, there may be situations where you need to force tax to be charged on an invoice. Also set tax rate in document footer to “L”	Default=Unchecked

Figure 5. AvaTax Control F/M - Restrictions Tab

This tab allows you to restrict tax calculation for the selected states only. This can minimize the volume of tax transactions used for states where you do not have Nexus.

Note: Using this option is not recommended as it makes reporting non-taxable sales a problem, since sales into excluded states are never reported to AvaTax

AvaTax Control F/M - Restrictions Tab Field Definitions

Field Name

Definition

Valid Values

States

Enter a list of states for which you want the tax calculation to be performed. Click "All" button for all states.

Valid two character state codes

Figure 6. The Branch Address F/M identifies the origin address for transactions that do not involve a warehouse (AR Invoicing) and enables the ability to post tax by branch as required by some states.

Branch Address F/M Field Definitions

Field Name	Definition	Valid Values
Address 1	First line of address.
Address 2	Second line of address if needed.
City	City
State	State	Valid two digit state code
Zip Code	Zip code
Address 3	Expanded full address	Click icon to build automatically
Location Code	Avalara's reporting code. Allows for branch specific reporting as required by some states.	As defined on the AvaTax Console.

Figure 7. AvaTax Tax Code F/M

This is a table of Avalara supplied codes which are used to categorize the goods and services found in your item file.

AvaTax Tax Code F/M Field Definitions

Field Name	Definition	Valid Values
Tax Code	Avalara tax code	F1 - Download codes directly from Avalara website
Description	Tax code description	Supplied by Avalara
Type	Avalara tax code type	P-Product F-Freight D-Digital S-Service O-Other
Disable	If disabled, the code will show up only in the file maintenance.	Default=Unchecked

Figure 8. AvaTax Entity/Use Code F/M

This is a table of Avalara supplied codes which are used to categorize your customers and individual ship-to locations. We deliver the connector with the file pre-populated.

AvaTax Entity/Use Code F/M Field Definitions

Field Name	Definition	Valid Values
Code	Avalara code	All codes are preloaded
Description	Entity/Use code description	Supplied by Avalara

Figure 9. Customer/Item Configuration

This configuration controls the entity/use code at the customer level. It can be set at a broad customer class level or may be specific to a customer, a customer / ship-to combination or include a series of item(s) or an item class for that customer scope. A customer may fit into one entity code for most items while having a different code for a particular item or group of items such as tools or consumables.

Customer/Item F/M Field Definitions

Field Name	Definition	Valid Values
Customer Class	FACTS customer class	Any Customer class F1- All classes, F2-Class Search, F3-Record Search
Customer	FACTS customer	Any Customer
Ship-To	FACTS Ship-To	Any Ship-to
Entity/Use Code	Avalara code	Any Avalara Entity/Use code
AvaTax Customer Number	Avalara assigned number	Used if FACTS customer code changes after getting uploaded to Avalara via tax or exemption certificate processing.
Item Class	FACTS Item Class	Any item class
Item	FACTS Item	Any item
Entity/Use Code	Avalara code	Any Avalara Entity/Use code

Figure 10. AvaCert Update for uploading customer data to AvaCert console or downloading exemption status into FACTS.

AvaCert Update Field Definitions

Field Name	Definition	Valid Values
Process	Determines whether process is uploading customer data to AvaCert website or downloading exemption results.	C-Send Customer Information D-Get Exemption Certificates

Figure 11. Calculate Taxes updates documents entered while system is offline to Avalara.

The FACTS AvaTax Connector allows for offline processing if there is network difficulty communicating with the AvaTax service. Tax calculation may be temporarily disabled for order processing via the "Calculate Taxes" flag found on the options tab of AvaTax Control F/M. Order entry may continue although without tax calculation. When the service is available, the calculation may be re-enabled. This update will calculate taxes for documents that have not had taxes calculated.

Calculate Taxes Option Defintions

Field Name	Definition	Valid Values
Action	Determines whether process is calculating taxes on documents that have not been calculated or whether a range of documents is to be recalculated.	C-Calculate R-Recalculate
Beginning	Beginning document number for recalculation. Field disabled if "Calculate" option is chosen	Six digit document number
Ending	Ending document number for recalculation. Field disabled if "Calculate" option is chosen	Six digit document number

Figure 12. Commit Invoices to AvaTax.

The final phase of transaction handling is to commit the invoices to the Avalara website. Any subsequent corrections or adjustments must be processed using Cash Receipts adjustment entry. This update is template driven and can be included on a Jobstream. Also, it can be run automatically following the updating of various FACTS registers if the "Auto Update" flag is set in AvaTax Control F/M on the options tab. Click Ok button to run.

Commit Invoices to AvaTax Option Definitions

Field Name	Definition	Valid Values
Process	Upload commit flag to Avalara website for transactions	Y or N

Figure 13. AvaTax History Removal

This update removes detailed transaction history and log information maintained within the FACTS database older than the "Years of History" specified in the AvaTax Control F/M on the options tab. It too, is template driven and can be included with a Jobstream. Click Ok button to run or cancel to exit.

AvaTax History Option Definitions

Button	Definition
Process	Remove transactions dated prior to "Years of History" cutoff

Figure 14. Verify Addresses

This update is used to initially verify existing addresses in all FACTS files and provide zip plus four accuracy. Every subsequent addition or edit automatically launches the verification process.

Verify Addresses Option Definitions

Button	Definition	Valid Values
Interactive	Ability to monitor exceptions during update. Alternately, you may run the Address Verification Log Report to locate any exceptions	Y or N
Addresses to Verify	Selection of files available to update. Choose each one to be verified during process.	Y or N

Figure 15. Address Verification Log

This log report details all address verification changes made to the various FACTS files. Many filtering options are available.

Address Verification Log Option Definitions

Button	Definition	Valid Values
Beginning Date	Beginning date for inclusion on report	Any date expression
Ending Date	Ending date for inclusion on report	Any date expression
Beginning Time	Beginning time for inclusion on report (only enabled when beginning and ending date are the same	Time in HH:MM:SS format (optionally add "A" or "P" - default="A")
Ending Time	Ending time for inclusion on report (only enabled when beginning and ending date are the same	Time in HH:MM:SS format (optionally add "A" or "P" - default="A")
Type	Address Type	Select from drop down list or CR=All
Result	Address Result	Enter one or more result codes: V-Verified U-Unverified C-Changed
Source Program	Program name from which address was verified	FACTS program name F1-All
User Code	User Code to show for log entries	Valid user code F1-All
User Action	Action taken by user	All-All changes YES-Accepted changes NO-Rejected changes F4-Rejected via F4

THE CONNECTOR and YOUR ERP

This section of the documentation details what is different in FACTS now that Avalara is the source for sales tax calculation and reporting. First we'll review key settings found in Sales Order Static Control File Maintenance and Accounts Receivable Invoice Processing File Maintenance that should already be set.

Figure 16. Sales Order Static Control F/M tax setting.

Ensure that the Tax input has "Y-Charge Tax With No Override Of Amount" selected. The connector should be in full control of all tax liability related questions. For temporary items, you may choose either “Y-Sales Tax” or “C-Cost Use Tax”

Figure 17. AR Invoice Processing F/M Charge Tax setting.

Ensure that "Charge Tax By Line" is selected for the Charge tax input.

Maintenance Options

There are several files that have been changed or have new implications due to implementing the FACTS AvaTax Connector. They are:

Customer File Maintenance

Item File Maintenance

Item Class File Maintenance

Adjustment Code File Maintenance

Ship Via File Maintenance

Figure 18. Customer File Maintenance Main tab

Note for FACTS 7.7 systems: Because there is no "Country" field, a value of "XX" in the "State" field assumes an international address. Beginning with FACTS 7.8, there is now international address handling.

Figure 19. Item File Maintenance Sales Tab.

A new code maintained by the AvaTax Tax Code File Maintenance in the Connector Setup section determines the taxability of an item. It uses Avalara designated codes to categorize the goods or services of the item. The Taxable flag is now used to determine if Use Tax applies to this item.

Item File Maintenance Field Definitions

Field Name	Definition	Valid Values
Taxable	Determines whether tax is sales or use tax	Y-Sales Tax C-Use Tax
AvaTax Tax Code	Avalara tax code used to categorize the goods or services.	Any valid Avalara tax code

Figure 20. Item Class File Maintenance Custom Tab

Setting the AvaTax Tax Code at the Item Class level allows you to more quickly categorize the items. It also allows for item specific exceptions. If you enter a value at the item level, it will override a value assigned to its Item Class.

Item Class File Maintenance Field Definitions

Field Name	Definition	Valid Values
AvaTax Tax Code	Avalara tax code used to categorize the goods or services.	Any valid Avalara tax code

Figure 21. Adjustment Code File Maintenance

One additional field has been added to the Adjustment Code F/M to designate that a given adjustment is sales tax related. This is used in Cash Receipts and Adjustment Entry for sales tax related corrections. The use of a tax related code triggers an additional screen where specific corrections are made.

Adjustment Code File Maintenance Added Field Definitions

Field Name	Definition	Valid Values
SO Tax	New field to indicate whether or not adjustment is tax related	Y or N (default=N)

Figure 22. Ship Via File Maintenance

Two additional fields have been added to the Ship Via F/M to designate whether or not this is a Will Call pickup and the AvaTax Tax Code to be used with this method of shipment.

Ship Via File Maintenance Added Field Definitions

Field Name	Definition	Valid Values
Will Call	New field to indicate whether or not this is a Will Call pickup. It forces the ship destination to be the same as the origin.	Y or N (default=N)
AvaTax Tax Code	Avalara tax code used to categorize the method of shipment	Any valid Avalara tax code

Cash Receipts and Adjustment Entry Options

A unique feature of the FACTS AvaTax Connector is the ability to use Cash Receipts and Adjustment Entry to make any necessary adjustments to the tax amount of invoices. If a customer takes advantage of a terms based discount and short pays the invoice, then the tax liability needs to be recalculated based upon the new value of the document otherwise it will be overstated. A miscalculation may also arise because one or more tax related data elements of the document content were not properly entered or configured at the time the invoice was originally generated.

Invoice Date

Customer/Entity Code

Origin or Destination

Item Tax Code

Freight Tax Code

Figure 23. Cash Receipts and Adjustment Entry Payment Screen

Cash Receipts and Adjustment Entry Payment Screen

Enter the appropriate payment amount, a discount amount if applicable and an adjustment amount if applicable. If an adjustment is made using a tax related adjustment code (see Figure 21), the Tax Adjustment Entry is triggered. You now may correct any tax related aspect of the document at either the header or line level that caused the original miscalculation.

Figure 24. Cash Receipts and Adjustment Entry Tax Adjustment Screen

Cash Receipts and Adjustment Tax Adjustments Screen

Once you have completed the corrections, click the "Recalculate Taxes" button. You must fully distribute the adjustment amount to tax related changes to the document. When the Cash Receipts and Adjustment Entry register is updated, the connector will create two tax related entries that are uploaded to AvaTax: a reversal to the original record and a new one reflecting the adjustments. This saves you the time of having to credit and rebill the original order.

Order Processing

During order entry FACTS will connect with the AvaTax service to retrieve the current tax rates. No transactions will appear in the portal as a result of this process. The system only retrieves the rates. For handling Use Tax, the line item detail screen offers a new option for the taxable flag. You select between Y-Taxable and C-Cost Use Tax. Cost Use Tax is used when an item you previously purchased tax exempt is now taxable as having been used in a billable project.

Figure 25. Sales Order Entry Detail Line Entry for Use Tax

Order Confirmation

During order confirmation, FACTS will connect with the AvaTax service and retrieve the current tax rates if there are any changes to items or quantities. The Commit Invoices to AvaTax update must be run before the AvaTax Console shows those transactions which can optionally be switched to process immediately following the update of the Daily Sales Register.

Day End Processing

Day end processing is completely automated if you chose the Auto Update option in AvaTax Control File Maintenance. If not, you will need to manually run the Commit Invoices to AvaTax update as the final step in tax posting. Any adjustments to the transaction afterwards must be handled via Cash Receipts Entry and Adjustments or the traditional credit and rebill process.

Table of Figures

INTRODUCTION

ACTIVATING YOUR AVALARA ACCOUNT: AN OVERVIEW

Account Activation

THE AVALARA CONNECTOR AND YOUR ERP: AN OVERVIEW

The FACTS AvaTax Connector Installation Process

How the FACTS AvaTax Connector Works within FACTS