Advanced Taxation

Nimble AMS provides the Advanced Taxation feature which aims to support various domestic tax levels (state, district, county, and local) as well as international tax levels (Canadian taxation, VAT, GST, PST, etc.).

The Advanced Taxation feature will use order details from Nimble AMS and an external tax system to calculate the accurate tax based on all guidelines for US and other countries, hence ensuring compliance. Also, very less manual intervention will be required to maintain taxes for every permutation and combination of tax, which will take into account product types, tax types and jurisdictions. Process will be streamlined to a large extent as any update in order will automatically recalculate the taxes.

The error free taxation reports will ensure that checks by state and federal officials go smoothly. Also, the work of accounting staff will be more structured and efficient.

What's New?

  • Four new fields have been added in Shipment section of Entity
    • Ship From Street 
    • Ship From State 
    • Ship From City  
    • Ship From Country

Ship From Location in Events

The Ship From Address in Events will be the event location.

  • We have added a new tag of External Sales Tax has been added on AMS side.
  • For creating a Sales Tax, we have added two record types: Manual and External so that, third party tax computation providers can be integrated with Nimble AMS by selecting External.
  • We have also added the Calculate Tax button which will be displayed to the staff user while placing the order when the External Sales Tax tag is enabled.
  • A new field - Tax Code is added in Product and Ship Method object so that you can set the tax applicable to the Product and Ship Method respectively.

Tax Code and Avalara

In Nimble AMS, as of Winter '20 release, the staff user can select a value from the Tax Code drop down on Product page to define which tax will apply to the product. In Avalara, a third party tax computation portal, the administrator can map Tax Codes with Item Codes. See Adding Tax Codes to learn more. 


  • We have also added a Taxable checkbox in the Ship Method object, so that you can mark the ship method as taxable.

Prerequisites

  • An association account should be created with Avalara by subscribing to it's product - Avalara Avatax which is integrated with Nimble AMS to perform tax calculations. You can browse through a number of plans of Avalara Avatax and subscribe to one which is best suited for your business. For testing purpose, you can also sign up for a free trial.

Avalara Credentials required for creating named credentials

While creating named credentials in Nimble AMS, you need to enter Avalara username and password.

  • Verify that the SDK package for Avalara or Avatax package is installed successfully. To install it, add /packaging/installPackage.apexp?p0=04t3i000002OLea to your org URL, as given below:

(YourOrgURL)/packaging/installPackage.apexp?p0=04t3i000002OLea

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upgrade avalara sdk screenshot

Installed SDK package auto populates various details

If SDK package is installed everything except Avalara credentials will be auto-populated while creating a Named Credential.

You will receive a confirmation email if the Avalara SDK package is successfully installed that looks like this:

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Avalara Install Successful


  • We recommend that the account to be used for placing the order should be configured with a Shipping Address. 

Note

If Shipping Address is not provided on the account, Nimble AMS will consider billing address on the account and send it to Avalara for tax calculation. If billing address is also not provided, an error is displayed to the staff user. 

  • You must configure the entity (linked to the product to be ordered), with a Short Name and Ship From Address, as this Address on the entity will be treated as the selling location. This will be sent to external tax system for calculating the tax accurately. 

Note

For Events, Nimble AMS will consider a single address which is the event location address instead of Ship To and Ship From.

  • You must ensure that the product to be ordered is marked as taxable and if the shipping method (if taxable), is also marked so. For more details, see Product Configuration and Ship Methods.
  • Ensure that the below page layouts are updated:
    • Entity page layout with the four new Ship From address fields
    • Ship Method page layout with Tax Code and Is Taxable field
    • Product page layout with Tax code field and Taxable checkbox


Enablement

To enable Advanced Taxation, the Administrator can follow the below steps:

  1. From Setup, enter Custom Metadata Types in the Quick Find box, then select Custom Metadata Types.
  2. Click Manage Records next to the Tag of Nimble AMS.
  3. Click Edit next to External Sales Tax.
  4. Select Is Active.
  5. Click Save.
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Custom Metadata Screenshot


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Demonstration Gif

Configuration

If you are using Avalara as the third party for tax computation, you must edit the Avalara Named Credentials as given below.

Edit Named Credentials

Named Credentials are required for integration of Nimble AMS with Avalara, as Avalara is a third party system. You need to edit the default Named Credentials as default ones are shipped with the product. For this, you first need to create an account with Avalara.

To edit the Named Credentials, follow the below steps:

  1. From Setup, enter Named Credentials in the Quick Find box, then select Named Credentials.
  2. Edit the Avalara Named Credentials "AvalaraNamedCredentials" and populate or enter the values given below:
    • In Identity Type, ensure that Named Principal is selected.
    • In Authentication protocol, ensure that Password Authentication is selected.
    • In Username, enter the Account ID of your Avalara account.
    • In Password, enter the License key of your Avalara account.

To learn more, see Define a Named Credential.

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Named Credential Gif


Setup Company Codes in Avalara | Default Company

You need to define your association's entities in Avalara portal, so that Avalara can assign tax based on entities. Depending on entities or companies (as called in Avalara portal), Avalara takes into account the tax type, jurisdiction and other parameters while calculating the tax for the products linked to that entity in Nimble AMS.

To define entities in Avalara Portal, follow the below steps:

  1. Go to Avalara Portal.
  2. On top right, go to Settings Manage companies.
  3. Click on Add a company | Begin Setup.
  4. Enter value in Company name.
  5. In Company Code, enter the short name by which entity is present in Nimble AMS. 

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    Avalara Company Info Screenshot

  6. Click Next.
  7. Verify your Country.
  8. Enter your Address, City, State and Zip/Postal Code.
  9. Click Validate.
  10. Depending on your preference, Use validated address or Keep original address.
  11. Click Next.
  12. Verify your data, and if necessary, Add US States and Territories.
  13. Click Done with sales and use tax.
  14. If necessary, Add countries where you collect VAT/GST.
  15. Select I don’t need to add VAT / GST countries or Add selected countries.
  16. Click Done with tax jurisdictions.
  17. Click Activate Company.
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Default Company

If company codes are not setup for different entities, the tax charged will depend on the default company.

Create a Sales Tax Record

Status Field in Layout

Before creating a sales tax record, ensure that the Status field is added to the page layout. If this field is not added, you will get an error on saving the Sales Tax Record.

You will need to create a Sales Tax record to use for all tax related calculations. Also, you can define multiple Sales Taxes in case of multiple entities. The applicable sales tax will be auto assigned based on country/jurisdiction when you add a taxable or shippable product to the cart.

To create a new sales tax record, follow the below steps:

  1. In the tab bar, click , or in Salesforce Classic, click .
  2. Enter Sales Taxes.
  3. Click Sales Taxes|New.
  4. On the pop up, select External and click Next.
  5. In Sales Tax Name, enter the name of the sales tax you are creating.
  6. In Named Credential, enter the name of the Named Credential. 

    Note

    Named Credential is an optional field. If no value is given, Nimble AMS uses the default named credential, 'AvalaraTaxation'.

  7. In Calculator Class, enter Avatax.AvalaraCallable.
  8. In Status, select Active.
  9. In Entity, enter the name of the Entity for which you are creating this sales tax.
  10. In State, select a state if entering a state tax rate.
  11. In Country, enter the name of the Country if you are setting up a country tax rate.
  12. In Sales Tax GL Account, enter the name of the GL Account and click , and select GL Account.
  13. Click Save.

To know more, see Sales Taxes.

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Demonstration Gif

Checklist 

  • Did you create an account with Avalara?
  • Did you install the SDK package for Avalara or AVATAX package?
  • Did you enable the External Sales Tax tag?
  • Did you edit Named credentials?
  • Did you add a company in Avalara Portal?
  • Did you create Sales Tax objects for all entities? 

Success

If all the steps have been followed you should now have set up Advanced Taxation.