How Avalara Retrieves Tax Calculations on Sales Orders

After setting up the Avalara tax connections and enabling the Avalara tool, the Avalara fields are activated throughout the Eclipse application. The system automatically uses Avalara for tax calculations when enabled. Sales Tax calculations are based on the address where goods are transferred and the jurisdictions in which that falls. While other settings and overrides can change the tax calculation, the address is the driving factor in tax calculations. Avalara handles the entire calculation process including tax jurisdictions, origination addresses, and manages all the latest tax regulations and requirements.

Note: Sales tax may be calculated based on either the destination or origin address, which is determined by Avalara and based on the local laws. The destination address is determined based on the ship via set up in Eclipse. The origin address is the ship branch unless it is a direct order, then the system uses the vendor's address. Additional addresses are sent with returns depending on what the original order was.

Sales Order Entry behaves differently when Avalara has been enabled. To keep your system processes quick and efficient, when Avalara is enabled, the system checks tax for sales orders only when users access the Status and Totals tab. To keep your system running as efficiently as possible, the system only calls Avalara during the following times to calculate tax.

• Manually Recalculating Tax

• After Processing Actions

• After Field Updates

Note: For credit and rebill transactions, Eclipse sends a record of the transaction to Avalara even if tax is not recalculated.

Additionally, you can use the Tax Commit Settings in the API Configuration > Avalara Tax Service window to automatically retax orders when an order is set to Commit.

Use the Allow Copy Avalara Bill-To Usage Code To All Ship-Tos control maintenance record to indicate if you want the system to push the usage code from Avalara used for your bill-to customers to all your ship-to customers as well.

Manually Recalculating Tax

While other settings and overrides can change the tax calculation, the address is the driving factor in tax calculations. If you have made changes to an order and the system does not retrieve a new tax calculation, you can recalculate on-the-fly. To manually recalculate tax for any sales orders, clear the Sales Tax field on the Totals tab of the sales order and use the Tab key to move to the next field the system automatically recalculates the tax.

Note: It is possible that a tax calculation call can be made if data changed on an attached window or process, but this should not slow your normal order processing.

After Processing Actions

An Avalara tax calculation called when the following Eclipse actions occur:

• Order Invoicing - During status changes in order entry or during phantom processing.

• Changing SOE Tabs - Navigating to the Totals or Status tab if calculation is required because something has changed.

After Field Updates

When you update the following fields, an Avalara tax calculation is made.