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Sales Tax Systems

This article discusses the different methods available for sales tax calculation in conjunction with the Order Manager. Support for external sales tax  programs was first introduced in the 5.811 beta with built-in support for AvaTax OnDemand, from Avalara, Inc.

Using the Internal Order Manager Sales Tax Calculation System

• Set system parameter SalesTaxSystem equal to Order Manager.

• Refer to Knowledge Base article, Tax Calculation for more information as to how the Order Manager will calculate taxes.

• Review the Knowledge Base article Sales Tax System Parameters to configure any additional Order Manager sales tax system parameters settings in the Order Manager that enable users to configure the program integrate with their business operations. The Order Manager includes hundreds of System Parameters to do just that. To change a system parameter, go to the Maintenance Menu> Set System Parameters. as appropriate for the environment.

Third-Party Sales Tax Calculation Software

In the 5.811 beta of the Order Manager, the groundwork was laid for integration with external sales tax automation programs. These programs are called by the Order Manager at the following locations in the program: Import Orders, Manual Orders, Point of Sale, Multi-Order Processor, View Orders and when filling back-orders. The amount of sales tax to be charged is calculated by the third-party software solution and the result is stored in each order, just as it is when using the internal Order Manager sales tax system. The data is also stored by the vendor for reporting and tax filing purposes.

To use third-party tax system software with the Order Manager, the Microsoft .Net Framework 2.0 must be installed on each workstation.

Note: Be aware that by using external sales tax systems, the merchant is subject to additional setup requirements and charges from the vendor, as well as limitations as to when sales tax information can be modified.    

Avalara

AvaTax OnDemand is a powerful, online sales tax compliance solution whose transaction-based service model and seamless integration into business applications provides rapid access to all jurisdiction assignments and real-time sales tax calculations. As transactions take place (either via the Order Manager Manual Orders or POS abbreviation for Point of Sale. The cash register interface for use with walk-in business at "brick and mortar" stores. Used with barcode scanners and cash drawers. Sales made on the POS screen draw from the same inventory as orders imported from online stores. interfaces or at the checkout form of a shopping cart an e-commerce software system that allows a merchant to sell products on the Web. In the context of the Order Manager, it refers to the settings that describe a merchants web store to the program, allowing it communicate with the online shopping cart and import orders, and other information etc.), AvaTax quickly applies sales tax calculations in the background via a secure, encrypted Internet connection. AvaTax OnDemand calculates sales tax in less than a second, without disrupting the existing workflow. Contact the vendor for additional setup and cost information. Visit their web site, AvaTax OnDemand.

Configuring the Order Manager

• Set system parameter SalesTaxSystem equal to Avalara.

• Enter the account number provided by Avalara, Inc. in system parameter AvalaraAccountNumber.

• Enter the license key information provided by Avalara, Inc. in the system parameter AvalaraLicenseKey.

• System parameter AvalaraTaxLocationCode is not necessarily required for all users. Avatax may have the user enter a value in this field if problems are encountered.

• Enter the company code provided by Avalara, Inc. in the system parameter AvalaraCompanyCode.

• Review the Knowledge Base article Sales Tax System Parameters to configure the remaining Order Manager sales tax related system parameters as appropriate for the environment.

• If drop-shipping will be used, system parameter DropShipShowAsShipped must be set to True.

• Enter the states for which sales tax will be collected in the list of Sales Tax States, which can be found by going to Maintenance Menu>Maintenance tab>List Maintenance>Go. See the knowledge base article, List Maintenance, for more information. The Order Manager will only send tax information to Avalara for orders that are being shipped to the states in the list.

Usage Notes electronic records, for internal use only, that contain additional details about program events, actions or customer information that are stored with order, customer, inventory and supplier records. Notes can be entered manually by the user or automatically entered by the program, based on parameter settings in some cases.

There are four "states" or functions that apply to AvaTax transactions:

Calc  - meaning that the sales tax is calculated, but a transaction is not saved in AvaTax and the merchant is not charged.

Save - meaning that the sales tax is calculated, the transaction is saved in AvaTax but the merchant is not charged.

Commit - meaning that the sales tax is calculated, the transaction is saved in AvaTax and the merchant is charged.

Locked - meaning that the sales tax transaction has been reported to the taxing authority and can no longer be changed. Recalculation of sales tax on such an order is not allowed and the order cannot be un-approved.

The Order Manager will Commit the sales tax charges in AvaTax when an order is approved, and the merchant will be charged for the transaction at that time. Up until that time, the merchant may make changes to sales tax on an order, free of charge.

If a sales tax transaction has been committed, but is not locked, it is possible to make changes affecting sales tax on an order by:

1. 1. Un-approving the order

   2. Making the necessary changes to the order

   3. Re-approving the order.

The Order Manager will tell AvaTax to void the previous transaction when the order is un-approved and will re-submit a transaction when the order is re-approved. The merchant will incur an additional charge each subsequent commit when changes are made.

Troubleshooting Problems with Avalara Avatax

• If the Order Manager encounters an error processing an AvaTax transaction, a note will be added to the order and the order will not be approved. If the error occurs during order import, the failure is recorded in the Reasons for Review and the order will not be approved.  

• If the Windows Firewall is turned on, be sure to configure it to allow the Order Manager program file to pass through the Firewall in order to contact the AvaTax Service. The default location of the program file is in C:\StoneEdge and the possible program file names are:

SEOrdMan2000.mdb

SEOrdManPlus2000.mdb

SEOrdManEnt2000.mdb

SEOrdMan2002.mdb

SEOrdManPlus2002.mdb

SEOrdManEnt2002.mdb

SEOrdMan2007.mdb

SEOrdManPlus2007.mdb

SEOrdManEnt2007.mdb

Windows XP Users: To determine if the Windows Firewall is turned on, go to Start>Control Panel> Windows Firewall and check the setting. If it is on, select to mouse "left-click" on an object, usually a row in a table, in the context of Order Manager documentation the Exceptions tab and click the Add Program button. Select the Browse button to navigate to the location of the appropriate Order Manager program file (see the list of program file names above). Click OK to have it added to the list of exceptions.

Windows Vista Users: To determine if the Windows Firewall is turned on, go to Start>Control Panel> Windows Firewall and check the setting. If it is on, click the Allow a program through the Windows Firewall link in the upper left-hand corner. Click the Add Program  button and Browse to the location of the appropriate Order Manager program file. Click OK to have it added to the list of exceptions.

Third Party Firewalls - consult the vendor's documentation for instructions on allowing a program access through the fire wall.

Custom

This option one of the possible choices for a product's attribute; for example, blue is an option for the product attribute of color is currently a placeholder for future use and should not be used at this time.

Created: 1/20/12

Updated: 4/19/12

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