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Calculating Tax on Billing Documents

You can calculate tax for a draft billing document using Avalara Avatax or manually depending on the settings your administrator has chosen. If your organization uses Avalara Avatax, tax is calculated using the summary tax code on the FFBC Tax Calculation Settings tab. If you are calculating tax manually, you can select up to three tax codes for each billing document line item.

Calculating Tax using Avalara Avatax

To calculate tax using Avalara Avatax, the billing document must have a company, an account and one or more billing document line items. When you calculate tax on a billing document with Avalara Avatax, the existing tax codes on billing document lines are removed and replaced with the summary tax code.

Note:

Notes

To calculate tax using Avalara Avatax, your administrator must first configure the settings on the Tax Calculation tab. See Tax Calculation Settings.

If the tax calculation settings have not been configured, the Calculate Tax button is not displayed on the enhanced Billing Document Detail page.

If the tax fields on the billing document line items already contain values, these are cleared when you calculate tax using Avalara Avatax.

To calculate tax using Avalara Avatax:

1. Ensure that a matching tax code exists for the Summary Tax Code specified on the Tax Calculation tab.
2. Ensure that the addresses of the Account and Company associated with the document are valid. See Validating Addresses for Sales and Use Tax Calculation.
3. On the Billing Document tab, click the billing document number of the billing document you want to calculate tax for.
4. Click Calculate Tax.
5. To confirm the action, click Calculate.

When you calculate tax on the enhanced Billing Document Detail page, a message is displayed that indicates whether tax was calculated successfully. If tax could not be calculated due to insufficient information in the billing document, edit that billing document and try again. If tax is calculated successfully, but there are messages or warnings from Avalara, click View Avalara Messages.

Calculating Tax Manually

To calculate tax manually from the enhanced Billing Document Detail page:

1. On the Billing Documents tab, click the Document Number of the billing document you want to calculate tax for.
2. Click Edit.
3. On each billing document line item do the following:
   1. Click the Tax Value Total.
   2. Enter a Tax Code, Tax Rate and Tax Value.
      Tip:

      Tip

      

      If you cannot see the tax code you want, type the first few characters of it to filter the list.
      Notes:

      Notes

      

      If you enter a tax code, that tax code must exist in your Salesforce Org. The Tax Rate and Tax Value fields are set initially from the tax rate that is in effect on the document date. If no tax rate is in effect for the document date, enter a tax rate. See Tax Codes .

      You can enter a specific Tax Value if you do not want it to be calculated from the Tax Rate

      If the Net Value of the line item changes, the tax value of the line item is calculated using the tax rate.
   3. Enter the remaining Tax Codes that you want for the billing document line item.
   4. [Optional] To clear a Tax Code, click next to the tax code you want to clear.
   5. Click Update.
4. Click Save.

Salesforce

To calculate tax manually using the Salesforce Billing Document Detail page:

1. On the Billing Documents tab, click the Document Number of the billing document you want to calculate tax for.
2. On each billing document line item do the following for each level of tax:
3. Enter a Tax Code, Tax Rate and Tax Value.
   Notes:

   Notes

   

   If you enter a tax code, that tax code must exist in your Salesforce Org. If the Tax Rate and Tax Value fields do not contain a value when you save the changes, they are set from the tax rate that is in effect on the document date. If no tax rate is in effect on the document date, you must enter a tax rate. See Tax Codes .

   You can enter a specific Tax Value if you do not want it to be calculated from the Tax Rate.
4. Enter the remaining Tax Codes, rates and values that you want for the billing document line item.
5. Click Save.

View Tutorial

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