Sales tax management is one of the most critical—and often complex—areas for growing businesses. That’s why we recently hosted a live webinar focused on how to handle sales tax within SAP Business One, and how to extend its capabilities using Avalara’s Avatax addon for more advanced scenarios.
We’re thrilled to share that the webinar was a success! If you missed it, you can now watch it on demand by clicking the link below:
What We Covered
During the session, we explored:
- How SAP Business One handles sales tax natively
- When and why to consider Avalara’s Avatax addon
- Real-world use cases and tips
- A lively Q&A session with practical insights from our experts
We introduced Avatax, a powerful tax engine designed for businesses operating in multiple states or dealing with complex tax scenarios. Please note: Avatax requires an additional purchase, but it can significantly streamline compliance and reduce manual effort.
Top Questions from the Webinar
Should I contact Avalara or Consensus to implement Avatax?
If you're a Consensus customer, contact Consensus directly. We are both a Certified Avalara Implementation Partner and a SAP Business One Gold Partner, so we’ll guide you through the entire process; support@consensusintl.com.
What is the price to include Avatax?
Pricing depends on your transaction volume, number of nexus states, and modules contracted with Avalara. Contact us for a personalized quote.
How long does implementation take?
It varies—some finish in 1 month, others take up to 6 months. Key factors include: Availability of your internal tax experts, Accuracy of your system data (e.g., customer addresses)
If I’m already using Avatax on my eCommerce site, what should I do?
That’s great! We recommend connecting it to SAP Business One for unified compliance across channels. Contact us to review your setup and explore the benefits.
Is Avatax right for everyone?
Not always. It depends on your sales tax setup. We’ll help you assess whether it’s the right fit for your business.
Are there other certified tax engines for SAP Business One?
No. Avalara’s Avatax is the only certified solution with a dedicated SAP Business One connector. Other solutions require custom integrations, which can be costly and harder to maintain. That’s why Consensus has partnered with Avalara.
What’s the alternative to updating sales tax without Avalara? Sales tax updates must be done manually. This means tracking changes in tax rates and rules across jurisdictions and updating them directly in SAP Business One.
Other Frequently Asked Questions:
General Sales Tax Management (Without Avalara Avatax)
How do I set up tax codes and tax groups in SAP Business One?
You can set up tax codes and groups in SAP B1 by navigating to Administration > Setup > Financials > Tax. Define the tax codes and assign them to tax groups based on jurisdiction and rate.
Can SAP Business One handle multi-state or multi-jurisdiction tax rates?
Yes, SAP B1 allows you to configure multiple tax codes and groups to handle different jurisdictions. You can assign these based on customer location or item type.
How do I manage tax-exempt customers or products?
You can mark customers or items as tax-exempt by assigning them to a tax code with a 0% rate or by using exemption flags in the Business Partner master data.
What reports are available for sales tax liability?
SAP B1 provides standard financial reports, such as the Tax Report and Sales Analysis, that help track tax liabilities. Custom reports can also be created using Crystal Reports or SQL queries.
How do I update tax rates manually?
Tax rates can be updated manually by editing the tax codes under Administration > Setup > Financials > Tax. Ensure changes are reflected in all relevant tax groups.
How do I handle tax on freight or shipping charges?
You can configure tax settings for freight charges in the document settings. SAP B1 allows you to apply tax codes to freight based on your business rules.
Sales Tax Management with Avalara Avatax Integration
How does Avatax calculate tax in SAP B1?
Avatax uses real-time API calls to calculate tax based on the transaction details, including customer location, item type, and jurisdiction rules.
Do I still need to maintain tax codes in SAP B1 when using Avatax?
No, Avatax handles tax calculation externally. However, you may need to configure default tax settings for fallback scenarios.
How are tax-exempt customers handled with Avatax?
Avatax allows you to manage exemption certificates through its dashboard. These are automatically applied during tax calculation if valid.
Can Avatax handle tax on freight, discounts, or bundled items?
Yes, Avatax supports complex tax scenarios, including freight, discounts, and bundled items. Ensure these are properly configured in your integration settings.
What happens if a transaction fails to calculate tax?
If a transaction fails, SAP B1 may default to a backup tax code or flag the transaction for review. Check the Avatax logs for error details.
How do I reconcile Avatax reports with SAP B1 financials?
Use Avatax’s reporting tools to export tax data and compare it with SAP B1 financial reports. Regular reconciliation ensures accuracy.
How do I manage returns and credits with Avatax?
Avatax supports tax adjustments for returns and credits. These are processed through the same API and reflected in your tax filings.
Is Avatax compliant with marketplace facilitator laws?
Yes, Avatax is designed to comply with marketplace facilitator laws and automatically applies the correct tax treatment.
How often does Avatax update tax rates and rules?
Avatax updates tax rates and rules automatically, typically daily, ensuring compliance with the latest regulations.
What happens if I sell in a new state—how do I register and configure it in Avatax?
You need to register with the state and update your Nexus settings in Avatax. Once configured, Avatax will apply the correct tax rules.
Whether you're just starting out or managing complex multi-state operations, our team is here to support you every step of the way. From evaluating whether Avatax is the right fit to guiding you through implementation and integration, we’re ready to help. Don’t hesitate to reach out—we’re just an email away. Please contact us at support@consensusintl.com.
