Avalara AvaTax and Order and Inventory Management – FinancialForce Connector

If you use Avalara to calculate taxes and file tax returns, we recommend that you perform the actions in the following order:

  1. Calculate taxes for the Order and Inventory Management document.
  2. Create a matching Accounting document from the Order and Inventory Management document.
  3. Post the Accounting document without calculating tax.
  4. Commit taxes to Avalara for the Order and Inventory Management document.

This ensures that you are not duplicating taxes in Avalara. For more information, see the sections below.

For more information about setting up tax calculation using Avalara AvaTax, see the following:

Order Fulfillment

With Order and Inventory Management – FinancialForce Connector and Avalara AvaTax, your invoicing process contains the following steps:

  1. Calculate taxes for an Order and Inventory Management invoice.
  2. Create a sales invoice from the OIM invoice. The sales invoice contains a line that summarizes the taxes.
  3. Post the sales invoice without calculating taxes for it in Accounting.
  4. Commit taxes to Avalara for the OIM invoice.

The following flow chart describes a simplified process of creating sales invoices from OIM invoices when tax calculation using Avalara is enabled. It also lists the options for streamlining the process.

Flow chart explaining the process of calculating tax for an Order and Inventory Management invoice and creating a sales invoice from it.

Procurement

If you also need to remit consumer use tax, you might process your vendor invoices in the following way:

  1. Calculate taxes for an AP voucher.
  2. Create a payable invoice from the AP voucher.
  3. Post the payable invoice.
  4. Commit taxes to Avalara for the AP voucher.

The following flow chart describes a simplified process of creating payable invoices from AP vouchers when tax calculation using Avalara is enabled. It also lists the options for streamlining the process.Flow chart explaining the process of calculating tax for an AP voucher and creating a payable invoice from it.

Automation

Many of the steps described above can be automated to reduce the manual steps and prevent user errors. For more information, see Setting up Avalara AvaTax with Order and Inventory Management – FinancialForce Connector.