Skip to main content
Solved

Project is Exempt-where is Avatax Entity Usage Type stored

  • June 9, 2025
  • 3 replies
  • 78 views

We often work for General or Electrical Contractors, who are not tax exempt. However, the project we are working on may be tax exempt. Since we use Avalara, the Project Revenue Tax Zone must be AVATAX—but there doesn’t appear to be an Entity Usage Type field to communicate to AVATAX that the project is exempt because it's a hospital, school, etc. The exemption type is important in completing tax returns for several states we work in, but as far as I can tell there is no such field in Projects!

How do we set up the Project so that Avatax knows 1) the project is exempt and 2) the type of exemption (entity usage type in Customer). 

We can’t just add the Entity Usage Type to the GC/EC account, because we may be doing one project at a school and another at a federal building, both billed to the same GC/EC. It really needs to be specific to the project. Having to remember to modify the Project Billing invoice before posting is a hassle, so would love it if I’ve just missed something simple.

Best answer by rfairchild58

This isn’t a single setting on project, but you can create an Exempt or Non-Taxable category and assign it to each of your revenue task lines.

3 replies

rfairchild58
Varsity I
Forum|alt.badge.img+1
  • Varsity I
  • Answer
  • June 9, 2025

This isn’t a single setting on project, but you can create an Exempt or Non-Taxable category and assign it to each of your revenue task lines.


  • Author
  • Freshman II
  • June 10, 2025

That will have to do for now, although some states want to know not just that revenue wasn’t taxable, but WHY… for that, Acumatica please make my life easier and add the Entity Usage Type to Projects! 


Running into a similar issue, and found a different workaround…

When you generate the Pro Forma using Project Billing, on the Financial tab of the Pro Forma screen, you can choose the Entity Usage Type there:

A bit of a pain because you will need to do this for each invoice, but it will capture the Entity Usage Type that you are looking for.

You can also use this functionality to temporarily override the reason, too. For example, if a typically Exempt customer needs to have tax charged, you can choose the Entity Usage Type “Taxable - Override Exemption” here.

 

Acumatica, if you’re listening here, adding an Entity Usage Type field to the Project’s Address tab (where the Revenue Tax Zone is set) would be very helpful.