Setting Tax Options

From the Tools menu, select Options to open the Options window.

In the left pane of the window, click on Tax Options.

In the Consumption tax type region, enter the following information as appropriate:

In the Consumption tax type field, use the lookup icon to select one of the following method for taxing goods and/or services:

Sales Tax: Select this option if your company does business exclusively with customers and/or vendors where only sales tax is assessed (e.g., a company doing business only with customers and/or vendors in the U.S.).

Sales Tax and VAT: Select this option if your company does business with one or more customers and/or vendors where sales tax is assessed (e.g. a company doing business with a customer and/or vendor in the U.S.) and one or more customers and/or vendors where Value-added Tax (VAT) is assessed (e.g., a company doing business with a customer and/or vendor in Canada, the UK, the Republic of Ireland).

VAT: Select this option if your company does business exclusively with customers and/or vendors where only VAT is assessed (e.g., a company doing business only with customers and/or vendors in Canada, the UK, the Republic of Ireland).

If you set Consumption tax type to Sales Tax and VAT or to VAT, do the following if applicable:

In the Tax standard as field, enter the default VAT code defined in Lists and Codes to use for standard tax (e.g., S - Standard).

If the system displays an [MTD Options] button to the right of the Consumption tax type field, do the following:

Click the [MTD Options] button.

In the Base URL field, enter the URL to the ECI Software Solutions - Manage VAT Portal for submitting a Making Tax Digital VAT Return to HMRC.

In the VAT Number field, enter your VAT number.

In the Tax as defaults region, enter the following information as appropriate:

In the Activity code field, use the lookup icon to select the default tax flag to be used for standard tax.

In the Items field, use the lookup icon to select the default tax flag to be used for items tax.

In the Freight field, use the lookup icon to select the default tax flag to be used for freight tax.

In the Miscellaneous charge field, use the lookup icon to select the default tax flag to be used for misc tax.

In the Travel field, use the lookup icon to select the default tax flag to be used for travel tax.

In the Miscellaneous region, check any of the following boxes that apply:

Require tax code on customers: When checked, e-automate requires a Tax code (or VAT group) to be assigned to each customer.

Require tax code on vendors: When checked, e-automate requires a Tax code (or VAT group) to be assigned to each vendor.

Use tax exemptions: When checked, e-automate allows customers, vendors, and contracts to be exempt from paying tax. The system displays below the Tax code (or VAT group) field in each of these records a Taxable (or VATable) checkbox and an Exempt code field. When the Use tax exemptions box is not checked, these additional fields are not displayed and all customers, vendors, and contracts are taxable.

Require tax exempt code when not taxable: When checked, a tax exempt code must be assigned to each customer, vendor, and contract for which the Taxable (or VATable) checkbox is not checked. When the Require tax exempt code when not taxable box is not checked, the system does not require entry of a tax exemption code in the Exempt code field.

In the Tax calculation engines region, select the tax engine you want to use and click [Configure selected tax engine].

To configure the built-in tax calculation engine, do the following:

In the Enabled field, use the drop-down menu to select True.

In the Tax Rounding region select one of the following rounding options:

If you want to round tax by only the transaction, select the Round per transaction option.

If you want to round tax by tax authority and transaction, select the Round per tax authority per transaction option.

If you want to round tax by tax flag, tax authority, and transaction, select the Round per tax flag per tax authority per transaction option.

Click [OK] to save the tax calculation engine configuration settings.

To configure Avalara tax calculation integration, do the following:

In the Enabled field, use the drop-down menu to select True.

In the Trace field, use the drop-down menu icon to select False.

In the TaxLiabilityGLAccount field, enter your sales tax payable account.

In the Url field, enter the URL you were given from Avalara.

In the Account field, enter your Avalara account number.

In the License field, enter your Avalara license number.

In the HideTaxResultWindow field, use the drop-down menu to select False.

Click the [Test connection] button. If the connection is successful you will see a success message. Click [OK] to acknowledge the successful connection.

To access the the Avalara Administrative Console, click the [Open admin console] button.

Click [OK] to close the Configure Tax Calculation Engine window.

Click [OK] to save the tax settings in the Options window.