Does anyone know of a way to handle the new CO Retail Delivery Fee ($.27 beginning July 1, 2022) either with Avatax or without?
Avalara had sent out communications regarding this which stated to perform the following:
Merchants subject to this fee will need to add a $0 line item to their orders with the OF400000 tax code.
I’m unsure as to how this would be done in Acumatica. Perhaps someone from Acumatica may know if there will be something released in a new build perhaps?
Best answer by dneiheiser94
The solution we came up with to automate this was to create a business event that triggers on the creation of the SO Invoice that runs an import scenario to add the $0 item with the tax category ID OF400000 to the invoice for all invoices that have a corresponding shipment record with the ship to state of “CO”. Once the the item is added by the import scenario the invoice is sent back to Avalara and Avalara return the $0.27 under the Tax ID ‘RETAIL DELIVERY FEE’ in the tax details.
Then per Colorado’s requirement to have this listed as a separate line on our invoices, since Acumatica is including this Retail Delivery Fee in the Tax Total and we don’t not include the tax details on our invoices, we updated our invoice reports to calculate the total tax and retail delivery fee using a subreport
Once the tax category and non-stock are setup, Avalara will pick up the delivery fee from the sales order? Nothing needs connected or activated?
You HAVE to add the non stock line to the SO.
I guess I am doing it a little different.
I have it built into a Non stock item with the tax category set to (Taxable)
Build the Non stock part number into Avatax and assign it the OF400000 tax code.
It will not itemize it on the Sales order or Invoice unless you modify your reports.
Avatax will pick it up and reports works as they should.
Our sales teams are manually entering it as a line item on all Colorado orders, even if they are exempt or if it’s for resale, etc.
When I get done with some Acumatica modifications and an upgrade we will build a customization to automagically populate it based upon ship to address on the Quote.
There is a new bill that’s going through the Colorado General Assembly, likely to become law: SB23-143. This could help business, especially small businesses, to comply with the CO Retail Delivery Fee (RDF). There are 2 key changes to highlight:
We are continuing to monitor this with the Avalara team and we will evaluate automating the RDF as this bill gets finalized.
Additionally,
Hello, I set it up as directed. I noticed in your example the taxable amount was zero. Our client states that their tax report from Avalara was off because there is not taxable amount in the sales order. Do you have an explanation or fix for this?
Hello, I set it up as directed. I noticed in your example the taxable amount was zero. Our client states that their tax report from Avalara was off because there is not taxable amount in the sales order. Do you have an explanation or fix for this?
There is no taxable amount because it is not a ‘tax’. it is a fee attached to each delivery. So it’s not associated to a value of product but each delivery of product.
This is how it is showing up on the report. Does it look correct?
It is being included in the total sales.
Just talked to Avalara support and they said these steps also need completed by the admin of Avalara for future readers.
1. Go to admin.avalara.com
2. Go to Returns > View and add returns > Add a tax return > Colorado >set up CO DR-1786 return form
3. In AvaTax go to Reports > Transaction reports > Sales tax document reports (Report Category)> Colorado retail Delivery Fee Report (Report name)
4.Submit the Colorado Retail Delivery Fee Report
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