Acumatica Sales Tax Integration Guide

Table of Contents
  1. Introduction
Guidelines
    Acumatica
    Platform
    Acumatica

    Versions
    2019R1+

    Extension
    Acumatica Marketplace

    Last Updated
    August 19, 2020

    This guide will take you step by step through how to integrate TaxJar with your Acumatica account. You’ll learn about calculations, invoicing syncs, reporting, filing, product and customer exemptions and more.

    Sales tax is complex, with regulations changing constantly. For a primer on the basics of sales tax, including nexus, registration, filing, reporting, calculations and more, please visit Sales Tax Fundamentals. Also, be sure to take a look at our Resource Center, with articles, webinars and videos for beginners and experts alike.

    Please note that TaxJar for Acumatica requires a TaxJar Professional or Premium subscription. To sign up, or to upgrade your existing account, please contact our sales team.

    How to Connect TaxJar with Acumatica

    TaxJar for Acumatica utilizes the External Tax Calculation feature in Acumatica. Tax will be calculated when documents, such as Sales Orders or Invoices, are saved. The following conditions are required for tax to be calculated:

    1. Add nexus states
    2. Enable External Tax Calculation
    3. Install the Customization Project
    4. Configure the Tax Provider
    5. Add a Vendor Profile for TaxJar
    6. Create a TaxJar Tax Zone
    7. Set the Tax Zone to TaxJar

    Basic Configuration

    Enable External Tax Calculation

    Acumatica requires the External Tax Calculation Integration feature to be enabled to support external tax calculation. This will have to be enabled by an administrator if it is not already enabled.

    To enable this feature, go to System Management → Licensing → Enable/Disable Features page.

    On this page, click Modify and check the Third Party Integrations → External Tax Calculation Integration box. Click Enable to save your changes.

    Enable External Tax Calculation
    External Tax Calculation must be enabled in Acumatica.

    Install the Customization Project

    Import the Customization Project on the Customization Project screen (SM204505) by clicking Import and selecting the file to upload.

    Import the Customization
    Import the Customization Project.

    Open the Customization Project and click Publish → Publish Current Project.

    Publish the Customization
    Publish the Customization Project.

    Configure the Tax Provider

    The TaxJar integration must be added as a Tax Provider.

    1. Go to the Tax Providers screen (TX102000).
    2. Click the Add New Record button.
    3. Set the Provider ID to TAXJAR.
    4. Set the Plug-in Type to TaxJar.Acumatica.SmartCalcsTaxProvider.
    5. Enter your API Token in the API Token field.
    6. Check the Active checkbox.
    7. Click Company Code Mappings.
    8. Enter any value for each branch in your Acumatica environment.
    9. Save the Tax Provider.
    Configure the Tax Provider
    Configure the Tax Provider with your API Token.
    Use any value for the Company Code Mapping
    Use any value for the Company Code Mapping.

    Create the Vendor Profile

    Create a Vendor Profile for TaxJar and set the Tax Agency Settings.

    1. Add a new record on the Vendors screen (AP303000).
    2. Set the Vendor ID to TAXJAR.
    3. Set the Vendor Name to TaxJar Tax Agency.
    4. Set Vendor Class to General & Administrative.
    5. Check the box Vendor is Tax Agency.
    6. Fill out the Default Tax Accounts on the Tax Agency Settings tab.
    7. Save the Vendor Profile.
    Create the Vendor
    Create a new Vendor for the Tax Agency.

    Create the Tax Zone

    Setting a tax zone on an order triggers tax calculation. This does not affect transactions being imported into TaxJar. The following steps detail creating a Tax Zone:

    1. Add a new record on the Tax Zones screen (TX206000).
    2. Set the Tax Zone ID to TAXJAR.
    3. Check the box External Tax Provider.
    4. Set the Provider ID to TAXJAR.
    5. Set the Tax Agency ID to TAXJAR.
    6. Save the Tax Zone.
    Create the Tax Zone
    Create a single Tax Zone for TaxJar.

    Assign the Tax Zone

    Tax Zones are set on the customer or order level. Assign customers the TaxJar tax zone under Delivery Settings on the Customers screen (AR303000).

    Set the Tax Zone for a Customer
    Set the Tax Zone for a Customer

    Enable Sales Tax Reporting

    Ensure the Customization Project has been installed. To enable Sales Tax Reporting, visit the Linked Accounts page in the TaxJar app to connect to Acumatica.


    Exemptions

    Customer Exemptions

    Mark customers as exempt by selecting an Entity Usage Type for the customer, location, or the order. Government and Wholesale exemptions are currently supported. The remainder of the Entity Usage Types are classified as Other.

    Leave the Entity Usage Type as Default for non-exempt customers.

    Exempt Customer
    Use the Entity Usage Type dropdown to mark a customer as exempt.

    Product Exemptions

    Product exemptions are managed by using a Product Tax Code (PTC). This section covers how to create an attribute and assign PTCs to your Stock Items and Non Stock Items.

    Identify Product Tax Codes

    Review the categories currently supported by the TaxJar API. Identify any categories relevant to your products. If there is no category for your specific product, leave the PTC blank and the product will be treated as fully taxable.

    TaxJar Tax Categories
    Find the appropriate tax category for your product.

    Create the PTC Attribute

    1. Add a new record on the Attributes screen (CS205000).
    2. Set the Attribute ID to PTC.
    3. Set the Description to Product Tax Code.
    4. Set the Control Type to Text.
    5. Save the Attribute.
    Create the PTC Attribute
    Create the PTC Attribute

    Assign the Attribute to Item Classes

    1. Go to the Item Classes screen (IN201000).
    2. Select the Item Class in the Item Class Tree.
    3. View the Attributes tab.
    4. Add the Attribute ID PTC.
    5. Repeat steps 2 - 4 for each item class with exempt products.
    6. Save the Item Classes.
    Assign Attribute to Item Class
    Assign the PTC Attribute to relevant Item Classes.

    Assign PTCs to Inventory Items

    Assignment of PTCs is the same for Stock Items and Non Stock Items.

    1. Go to the Stock Items screen (IN2025PL) or the Non-Stock Items screen (IN2020PL).
    2. Select the Inventory Item.
    3. View the Attributes tab.
    4. Set the Value of the Product Tax Code attribute.
    Assign PTCs to Inventory Items
    Assign PTCs to Inventory Items.

    Updating the Integration

    Updating to the latest version of the integration will ensure you have the latest features and bug fixes.

    Follow the below steps to upgrade:

    1. Go to the Customization Projects screen.
    2. Click Import > Choose File, select the new file, and then click Upload.
    3. Uncheck the Customization Project for the old version of the integration.
    4. Click Publish to unpublish the Customization Project and wait for the operation to complete.
    5. Check the Customization Project for the new version of the integration.
    6. Click Publish and wait for the operation to complete.

    Frequently Asked Questions

    Taxes Calculated based on the Warehouse

    Taxes will be calculated using the warehouse location for the destination address when the Ship Via field is not selected. This is considered Will Call since the customer would be picking up the order from the warehouse.

    Ensure the Ship Via field is selected if the order is being shipped.

    Set the Ship Via
    Set the Ship Via under Shipping Settings

    Tax Rates are Incorrect

    Ensure you are using our production environment. Additionally, use our sales tax calculator to verify the rate. If you continue to see an incorrect tax rate, please reach out to our support team.

    Do you support Marketplace transactions?

    Yes. Use a separate tax zone for Marketplace transactions in order to bypass tax calculation. These transactions will still be imported into your TaxJar account. When creating this Tax Zone, leave the External Tax Provider option unchecked.

    Use the following Tax Zones for Marketplace Transactions. These transactions will be recognized by TaxJar as marketplace exempt transactions.

    Marketplace Tax Zone ID
    Amazon AMAZON
    eBay EBAY
    Etsy ETSY
    Walmart WALMART
    Other MKTPLACE

    Do I have to recalculate tax on orders when I import them into Acumatica?

    If the storefront is calculating taxes with TaxJar, these transactions can be assigned a separate tax zone to bypass recalculating tax. Leave the External Tax Provider option unchecked. These transactions will still be imported into your TaxJar account.

    No Transactions in the TaxJar App

    The following troubleshooting steps may be helpful:

    1. Ensure your account has been linked.
    2. Transactions are imported nightly. Transactions from the current day may not be available until the next day.
    3. Still having issues? Contact our customer support team.

    Integration Changelog

    Curious to see what’s changed with our integration lately? Read on to learn more!

    v1.0.4 - 2020-07-29

    • Certified for Acumatica 2020R1.
    • Fixed an issue where the taxable amount was not being calculated correctly on certain orders.
    • Added support for propagating taxes from an imported Sales Order for certain edge cases.

    v1.0.1 - 2020-07-15

    • Updated exemption mapping to support Acumatica 2020R1
    • Updated logging to support Acumatica 2020R1

    v1.0.0 - 2020-06-26

    • Initial release.

    If you have additional questions or need help integrating your Acumatica and TaxJar accounts, please contact our support team.

    © 2021 TaxJar