Managing Avatax in Odoo 17 Accounting Module

This section covers the integration and management of Avalara Avatax within Odoo 17. We'll explore how to set up Avatax, configure tax rules, and ensure accurate sales tax calculation for invoices and e-commerce transactions. The goal is to provide a seamless and compliant tax management solution, minimizing manual effort and reducing tax-related errors.

1. Managing Avatax in Odoo 17 Accounting Module Enterprise

2. Introduction Enterprise AvaTax is a cloud-based tax calculation service provided by Avalara. It automates the process of calculating sales tax, VAT, and other transactional taxes for businesses. AvaTax integrates with various business systems, such as e-commerce platforms, ERP systems, and accounting software, to ensure accurate tax calculations in real-time, based on the latest tax rules and regulations. It guarantees that a business can compute shipping rates, taxes applicable to a product, and more. The AvaTax application simplifies the process of automating tax calculations. The Odoo 17 Accounting module has the AvaTax feature, which allows users to configure sales tax. Managing AvaTax in Odoo 17 within the Accounting module involves integrating AvaTax service to automate tax calculations, ensuring compliance with various tax regulations.

3. Enterprise To compute taxes automatically, users need to set the necessary credentials.First goto Accounting module’s Configuration settings, enable AvaTax under the ‘Taxes’ section and tick the check box showing Use AvaTax over there. Then it shows the fields to fill in the credentials for using the Avatax in Odoo.

4. Enterprise Once we click on the ‘How to Get Credentials’, it will direct us to the official site of the Avalara as We have to obtain the required credentials and register for a new account in AvaTax. Apply the credentials to the API ID and API Key in the Settings page.

5. Enterprise We can use the AvaTax’s environment also in Odoo to both Sandbox and Production as

6. Enterprise We can configure tax mapping for AvaTax from Accounting module’s Fiscal position setting from the menu Configuration -> Fiscal Positions under Accounting section.

7. Enterprise Select Automatic Tax Mapping (AvaTax) as the Fiscal Position name in the new window. We can launch AvaTax API by turning on the Use Avatax API field in the Fiscal Positions panel. Enable the Detect Automatically field to automatically detect the fiscal position. To the fiscal position, the user can also designate the Foreign TAX ID and Country .

8. Enterprise The user has the option to discuss the AvaTax legal notes at the end of the tab. The snap below shows the area to add the legal comments for printing on invoices.

9. Enterprise After entering the required information for Automatic Tax Mapping for AvaTax, click the Save manually icon. Let's examine the tax computation in Odoo 17 Accounting for invoice creation. A list of all created invoices is available to the user by selecting the Invoices menu under the Customers tab. To begin a new invoice, select the NEW icon add necessary details the customer and products.

10. Enterprise Beneath the Other Info tab, we can see the option to select the fiscal position for the order. Select our new Fiscal Position Automatic Tax Mapping (AvaTax) .

11. Enterprise Then shows the new button ‘Compute Taxes’ on top of the invoice as By clicking the ‘Compute Taxes’ option for the Invoice, Odoo compute taxes automatically with the AvaTax program if the AvaTax credentials are right.

12. Enterprise AvaTax Category on Product Data in Odoo 17 Accounting In Odoo 17, AvaTax can be set for the Product categories also. Go to Accounting module’s Configuration -> Product Categories . Open any product category or click on New to create a new one

13. Enterprise Similarly, for the inventory products also, AvaTax Category can be set. For that, just open any existing product and we can see that under the General Information tab, there is a way to add it as in the snap below.

14. Enterprise AvaTax application makes it simple to calculate taxes automatically. Using Odoo ERP software allows businesses to swiftly configure their taxes. AvaTax ensures that you apply the correct tax rates and rules for different regions automatically. Also, it can reduce the manual effort involved in calculating taxes, especially in jurisdictions with complex tax laws and with more accuracy.

15. For More Info. Check our company website for related blogs and Odoo book. Check our YouTube channel for functional and technical videos in Odoo. Enterprise www.cybrosys.com