ANS-1662 · SUITETAX & TAX MANAGEMENT
How to Configure AvaTax to Use Transaction Date Instead of Posting Period Start?
Ensure accurate tax calculations and exemption application in NetSuite by adjusting your AvaTax bundle settings to use the actual transaction date.
Short answer
To resolve AvaTax using the first day of the posting period as the tax date, navigate to the Avalara configuration page. Under the 'Tax Calculation' tab, locate and disable the setting that forces the first day of the period as the tax calculation date. This ensures exemptions are correctly applied based on the transaction date.
Scenario
Users may encounter issues where AvaTax for NetSuite incorrectly uses the first day of the posting period as the tax date, rather than the actual transaction date. This can lead to problems with tax exemptions, particularly when exemption certificates are received mid-month. Transactions entered after an exemption certificate is obtained, but within the same posting period, may not have the exemption applied correctly, resulting in inaccurate tax calculations.
Solution
The behavior of AvaTax using the first day of the posting period as the tax date is controlled by a specific configuration within the AvaTax bundle. To adjust this setting:
Navigate to the Avalara configuration page. The current path is typically
Avalara > Avalara Dashboard > Manage Avalara, then selecting 'Avalara' from a 'Setup' tile or portlet.Once on the Avalara configuration page, locate and select the 'Tax Calculation' tab.
Within the 'Tax Calculation' tab, identify the setting that enables sending the first day of the posting period as the transaction date instead of sending the header invoice date as the transaction date. Disable this setting.
Save the changes to apply the updated configuration.
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