Calculating Tax on Sales Orders Purchase Orders and Customer Quotations

You can calculate tax on a sales order, purchase order or customer quotation in the same way. When you calculate tax on a sales order, purchase order or customer quotation, this is an estimate of the tax to be paid and is not final. Documents are not created in Avalara. You cannot post and commit tax for sales orders, purchase orders and customer quotations. You can only post and commit tax from the resulting invoice or AP voucher. In the case of a sales order where goods are to be shipped, tax cannot be posted and committed until the shipment is confirmed.

To calculate tax on a sales order, purchase order or customer quotation click Calculate Tax.

Cancelling a Sales Order Line

When you cancel sales order lines you won't want to include those lines for the purpose of calculating tax. New sales order lines that you create that have not had tax calculated on them and sales order lines that have already had tax calculated can be cancelled and they won't be included in the next tax calculation.

To calculate tax on a sales order after a line has been cancelled click Calculate Tax on the sales order header.

Note:

Note

Tax is calculated for documents such as customer quotations, sales orders, invoices and credit invoices depending on the override account you enter. If you do not enter an override account, tax is calculated depending on the account. For instance, if you enter an Override Bill To Account on a customer quotation and the Override Bill To Account is tax exempt but the quote account is not, the tax is set to zero.