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AvaTax Sales Tax Automation Add-on
Configuring the AvaTax Sales Tax Automation Add-on
Configuring the AvaTax Sales Tax Automation Add-on

Connect to your AvaTax account and configure the settings in you online store.

Seller Labs avatar
Written by Seller Labs
Updated over a week ago

After installing the AvaTax Sales Tax Automation add-on, you need to configure it.

To configure the add-on:

  1. In the Apps section of your X-Cart store's Admin area, locate the entry for the AvaTax Sales Tax Automation add-on and click the Settings link below it:


    The add-on settings page opens.

  2. Provide your authentication information in the Account settings section:

    • Account number: Enter the account number from the AvaTax Admin Console, a ten-digit number (e.g., 1100012345) used to authenticate your API call.

    • License Key: Enter the license key from the AvaTax Admin Console. This is a 13-character string (e.g., 1A2BC3D4E5F6G7).

    • Company code: Enter the company code you declared during the company setup in the AvaTax Admin Console.

  3. Adjust the rest of the fields on the page:


    TAX CALCULATION SETTINGS

    • Enable tax calculation: This toggle allows you to enable Avalara's tax calculation services for your store.

    • Display taxes as a summary: Enable the toggle if you want to display a joined tax cost instead of a list of taxes applied to an order.

    • Record transactions into AvaTax on order place: Use this toggle to specify whether transactions should be recorded into AvaTax on order placement. For cases when a customer places an order with this setting enabled, the transaction will be calculated in AvaTax using the SalesInvoice transaction type and recorded as permanent in AvaTax. For cases with the option disabled, the transaction will be calculated in AvaTax using the SalesOrder transaction type. The quick estimate will be considered accordingly and will not be recorded. You can find more info on this here.

    • Set transaction as Committed on order place: Use this setting to specify whether AvaTax should commit a transaction on order placement.


      NOTE: Since the commit action is possible only on a SalesInvoice transaction, this setting is only available when the "Record transactions into AvaTax on order place" setting is enabled.



      When this setting is enabled, your store sends a request to AvaTax to commit the sales invoice (i.e., record the invoice in AvaTax for reporting) as soon as the buyer completes creating their order. When this setting is disabled, the sales invoice is saved on the Admin Console but not committed at the time of order placement.

      It is recommended to keep the "Set transaction as Committed on order place" option enabled if, according to your store's business processes, the AvaTax invoice document will no longer need to be changed once the order has been placed. However, if you know there may be changes, it is better to disable this option, so the document remains uncommitted until the transaction is finalized. Then, you will need to commit the document manually.



      NOTE: As long as the "Set transaction as Committed on order place" option is disabled, Avalara charges you for every request your store sends to AvaTax related to a change in an uncommitted order. More info is available here.


    • Do not create an order in case of tax calculation error: Enable this setting to prevent the creation of orders without proper tax calculation by AvaTax. With this setting enabled, a buyer will not be allowed to submit their order without a successful tax calculation. Tax calculation may fail, for example, if the address entered by a customer at checkout is ambiguous to the point where AvaTax cannot resolve the address information and complete tax calculation for it. In this case, the "Place order" button will be disabled, so the buyer must correct the address before they can follow through with the checkout.


      NOTE: A customer's address does not require 100% accuracy for sales tax calculation. While a fully validated street address is always better and more accurate, in most cases, AvaTax will be able to calculate sales tax correctly if, at a minimum, city, state, and zip code are provided (and at least 2/3 are valid).


    • Automatically calculate taxes for: Define the nexus states for your online store and include these states in the nexus jurisdictions for the store's AvaTax account via the AvaTax Admin Console.

    ADDRESS VERIFICATION SETTINGS

    • Enable address verification: Use this toggle to enable/disable Avalara's address verification service for your store.

    ADVANCED SETTINGS

    • Development mode: If you have a development account, you can enable this option to test the integration. For testing, use your development account number and license key in the 'Account number' and 'License Key' fields above.


      NOTE: In development mode, tax calls will be made to https://development.avalara.net instead of the production mode, where the URL https://avatax.avalara.net is used.


    • Debug mode: Enable this setting to log the debug info. Logs are stored in the var/log directory.

  4. Click Submit to save the settings and verify the account information entered in the Account settings section (Account number, License key, and Company code). Your online store will connect to AvaTax using the account information provided. If the information is incorrect, an error will be displayed ("Cannot connect to AvaTax server. Make sure the Account number, License key, and Company code have been entered correctly").

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