AvaTax integration¶

Avalara’s AvaTax is a cloud-based tax software. Integrating AvaTax with Odoo provides real-time and region-specific tax calculations when users sell, purchase, and invoice items in Odoo. AvaTax tax calculation is supported with every United Nations charted country, including inter-border transactions.

AvaTax accounts for location-based tax rates for each state, county, and city. It improves remittance accuracy by paying close attention to laws, rules, jurisdiction boundaries, and special circumstances (like, tax holidays, and product exemptions). Companies who integrate with AvaTax can maintain control of tax-calculations in-house with this simple API integration.

Set up on AvaTax¶

To use AvaTax, an account with Avalara is required for the setup. If one has not been set up yet, connect with Avalara to purchase a license: Avalara: Let’s Talk.

Then, create a basic company profile.

Create basic company profile¶

Collect essential business details for the next step: locations where tax is collected, products/services sold (and their sales locations), and customer tax exemptions, if applicable. Follow the Avalara documentation for creating a basic company profile:

1. Add company information.

2. Tell us where the company collects and pays tax.

3. Verify jurisdictions and activate the company.

4. Add other company locations for location-based filing.

5. Add a marketplace to the company profile.

Connect to AvaTax¶

After creating the basic company profile in Avalara, connect to AvaTax. This step links Odoo and AvaTax bidirectionally.

Navigate to either Avalara’s sandbox or production environment. This will depend on which type of Avalara account the company would like to integrate.

Log in to create the License Key. Go to Settings ‣ License and API Keys. Click Generate License Key.

If this will be the first API integration being made with AvaTax and Odoo, then click Generate license key.

If this is an additional license key, ensure the previous connection can be broken. There is only one license key associated with each of the Avalara sandbox and production accounts.

Configuração do Odoo¶

Before using AvaTax, there are some additional configurations in Odoo to ensure tax calculations are made accurately.

Verify that the Odoo database contains necessary data. The country initially set up in the database determines the fiscal position, and aids AvaTax in calculating accurate tax rates.

Fiscal country¶

To set the Fiscal Country, navigate to Accounting app ‣ Configuration ‣ Settings.

Under the Taxes section, set the Fiscal Country feature to United States, Canada, or Brazil. Then, click Save.

Company settings¶

All companies operating under the Odoo database should have a full and complete address listed in the settings. Navigate to the Settings app, and under the Companies section, ensure there is only one company operating the Odoo database. Click Update Info to open a separate page to update company details.

If there are multiple companies operating in the database, click Manage Companies to load a list of companies to select from. Update company information by clicking into the specific company.

Database administrators should ensure that the Street…, Street2…, City, State, ZIP, and Country are all updated for the companies.

This ensures accurate tax calculations and smooth end-of-year accounting operations.

Module installation¶

Next, ensure that the Odoo AvaTax module is installed. To do so, navigate to the Apps application. In the Search… bar, type in avatax, and press Enter. The following results populate:

Click the Install button on the module labeled, Avatax: account_avatax. Doing so installs the following modules:

• Avatax: account_avatax

• Avatax for SO: account_avatax_sale

• Avatax for Inventory: account_avatax_stock

Should AvaTax be needed for geo-localization, or with the Amazon Connector, then install those modules individually by clicking on Install on Avatax for geo localization and Amazon/Avatax Bridge, respectively.

Odoo AvaTax settings¶

To integrate the AvaTax API with Odoo, go to Accounting app ‣ Configuration ‣ Settings section. The AvaTax fields in the Taxes section is where the AvaTax configurations are made, and the credentials are entered in.

First, tick the checkbox to the left of the AvaTax settings, to activate AvaTax on the database. This is a quick, convenient way to activate and deactivate AvaTax tax calculation on the Odoo database.

Pré-requisitos¶

First, select the Environment in which the company wishes to use AvaTax in. It can either be Sandbox or Production.

Credenciais¶

Now, the credentials can be entered in. The AvaTax Account ID should be entered in the API ID field, and the License Key should be entered in the API Key field.

For the Company Code field, enter the Avalara company code for the company being configured. Avalara interprets this as DEFAULT, if it is not set. The Company Code can be accessed in the Avalara management portal.

First, log into the AvaTax portal (sandbox or production). Then, navigate to Settings ‣ Manage Companies. The Company Code value is located in the row of the Company in the Company Code column.

Transaction options¶

There are two transactional settings in the Odoo AvaTax settings that can be configured: Use UPC and Commit Transactions.

If the checkbox next to Use UPC is ticked, the transactions will use Universal Product Codes (UPC), instead of custom defined codes in Avalara. Consult a certified public accountant (CPA) for specific guidance.

Should the Commit Transactions checkbox be ticked, then, the transactions in the Odoo database will be committed for reporting in AvaTax.

Address validation¶

The Address Validation feature ensures that the most up-to-date address by postal standards is set on a contact in Odoo. This is important to provide accurate tax calculations for customers.

Additionally, tick the checkbox next to the Address validation field.

Save the settings to implement the configuration.

Dica

Manually Validate the address by navigating to the Contacts app, and selecting a contact. Now that the AvaTax module has been configured on the database, a Validate button appears directly below the Address.

Click Validate, and a pop-up window appears with a Validated Address and Original Address listed. If the Validated Address is the correct mailing address for tax purposes, click Save Validated.

Test connection¶

After entering all the above information into the AvaTax setup on Odoo, click Test connection. This ensures the API ID and API KEY are correct, and a connection is made between Odoo and the AvaTax application programming interface (API).

Sync parameters¶

Upon finishing the configuration and settings of the AvaTax section, click the Sync Parameters button. This action synchronizes the exemption codes from AvaTax.

Posição fiscal¶

Next, navigate to Accounting app ‣ Configuration ‣ Accounting: Fiscal Positions. A Fiscal Position is listed named, Automatic Tax Mapping (AvaTax). Click it to open AvaTax’s fiscal position configuration page.

Here, ensure that the Use AvaTax API checkbox is ticked.

Optionally, tick the checkbox next to the field labeled: Detect Automatically. Should this option be ticked, then, Odoo will automatically apply this Fiscal Position for transactions in Odoo.

Enabling Detect Automatically also makes specific parameters, such as VAT required, Foreign Tax ID, Country Group, Country, Federal States, or Zip Range appear. Filling these parameters filters the Fiscal Position usage. Leaving them blank ensures all calculations are made using this Fiscal Position.

AvaTax accounts¶

Upon selecting the checkbox option for Use AvaTax API a new AvaTax tab appears. Click into this tab to reveal two different settings.

The first setting is the AvaTax Invoice Account, while the second is, AvaTax Refund Account. Ensure both accounts are set for smooth end-of-year record keeping. Consult a certified public accountant (CPA) for specific guidance on setting both accounts.

Clique em Salvar para implementar as alterações.

Tax mapping¶

The AvaTax integration is available on sale orders and invoices with the included AvaTax fiscal position.

Product category mapping¶

Before using the integration, specify an Avatax Category on the product categories. Navigate to Inventory app ‣ Configuration ‣ Product Categories. Select the product category to add the AvaTax Category to. In the AvaTax Category field, select a category from the drop-down menu, or Search More… to open the complete list of options.

Product mapping¶

AvaTax Categories may be set on individual products, as well. To set the Avatax Category navigate to Inventory app ‣ Products ‣ Products. Select the product to add the Avatax Category to. Under the General Information tab, on the far-right, is a selector field labeled: Avatax Category. Finally, click the drop-down menu, and select a category, or Search More… to find one that is not listed.