How to prevent Acumatica ERP Sales Orders and Invoices from recalculating the taxes imported from external systems such as BigCommerce, Shopify, Amazon etc.,

  • 2 December 2022
  • 14 replies
  • 1025 views

Userlevel 7
Badge +2

In 2023R1, a new checkbox called “Disable Automatic Tax Calculation” is introduced in the Order Types(SO201000) form. When this checkbox is selected, the system will refrain from recalculating the taxes for the Sales Orders and Invoices. 

 

 

The Commerce connector will import the Taxes from external systems such as BigCommerce, Shopify, Amazon etc., if the “Tax Synchronization” checkbox is selected in the Stores form. 

 

If the “Tax Synchronization” checkbox is selected in the Stores form and if the selected Order Type in Order Type for Import selector has “Disable Automatic Tax Calculation” unchecked then a warning is shown to the user as “ The Disable Automatic Tax Calculation check box is cleared for the EO order type on the Order Types (SO201000) form. Taxes in sales orders imported from the BigCommerce store will be recalculated on invoice creation.”

 

Once these taxes are imported, then it stays as the same even if the Sales Order or Invoice is modified.  

This “Disable Automatic Tax Calculation” is also found in the Financial tab of the Sales Order(SO301000) form. This inherits the value from the Order Types form. If for some reason, the user would like to recalculate the taxes in Sales Order or Invoice, then the user could simply uncheck the “Disable Automatic Tax Calculation” checkbox. 

 

 

Limitations:

  1. Currently, the Disable Automatic Tax Calculation check box will not work with
    • Inclusive taxes.  
    • If the Net/Gross Entry Mode feature is enabled, with the Gross mode.
  2. Currently, for the partial invoices, the taxes are posted to the first invoice. But this will be enhanced in the upcoming releases. 

14 replies

Userlevel 3
Badge

Hi @KarthikGajendran   

We have customers who are using Tax Tables or Integrations in Shopify but in Acumatica there are no Tax definitions available.  But they want to have the Taxes being brought into Acumatica and reflected right on to the Invoice.  

Could you please advise on what is the workaround or Solution achieve this?  

We have multiple Commerce clients impacted around this .  

Regards

Sai 

Userlevel 7
Badge +2

@Sai Chettiar  Thanks for the question. Could you please provide me a example or a scenario? I would like to clearly understand what you mean by Tax Tables, Tax Definitions. Thank you. 

Userlevel 3
Badge

Hi @KarthikGajendran 

Sure,  sharing the details below. Let me know please if you need any further information.  

On the Substitution lists, we have the following mapping in place for the different tax breakdowns coming in from Shopify.  

 

 

The Tx definition for Manual ID is as follows: 

 

 

With this definition, the Tax information comes in fine from Shopify to Acumatica.   

 

But when the Sales Order moves to the Invoice Stage, the Tx becomes Zero since there is no Tax Rate or definition available inside of Acumatica.  

Since the client is not using an integration with Avalara, Vertex or even Tax rate definitions inside of Acumatica, what is the best way that the Taxes can be setup inside of Acumatica for taxes to come in fine from Shopify and be available right through until the Invoice stage.   

We have attempted through some customizations but for some reason we are always seeing differences in tax values from Order to Invoice and leading to accounting issues.   

Let me know if any further information is required. 

 

Regards

Sai 

 

 

Userlevel 7
Badge +2

@Sai Chettiar You are trying to manipulate the system. This approach will not work for you. 

If user do not want to pay for Automatic Tax Engines, then they must setup the taxes with the correct tax IDs, tax rates in Acumatica. MANUALID will not work because Acumatica will always recalculate the taxes at the Invoice level. 

The only way for you is to wait until 23R1 is released and use the option as mentioned in this article. Because this will prevent from recalculation at the Invoice level. So the taxes from Sales Order will pass to Sales Invoice without recalculation.

If not, create all the tax IDs, tax rates in Acumatica as you see in external system.

 

Userlevel 4
Badge

I’m not sure if we have the same use case as you, but this may work.

We had an issue where Amazon orders coming in through Shopify do not have sales tax because Amazon remits them directly. Unfortunately, Acumatica  re-added the tax.

To fix this until we can roll out 23R1, I added the following line to the sales order import map:

Formula to cut and paste:
=iif([OrderData.TotalTax]<=0, 'EXEMPT', 'AVATAX')

This treats Shopify as the tax system of record for tax exemptions. If the Tax Total in Shopify is 0 then the import will force override the order tax zone to EXEMPT.

I implemented this today and the orders I tested worked. That being said, use at your own risk!

 

I use this feature, wondering about the behavior.  If I disable is the expected behavior not to send the invoice to my Avalara portal?  The feature works good and when I invoice the order nothing is hitting my Avalara portal.  I am assuming this is the expected behavior, however I was hoping it worked like the Avalara QuickBooks connector that would still send the invoice to the portal if tax was calculated elsewhere.  

Userlevel 4
Badge

We just went through this. It looks like if you select Do Not Recalculate Taxes, it stops sending transactions to Avalara.

Be sure that whatever store you are using, Shopify in our case, is properly connected to Avalara and sending transactions properly.

It’s not enough to just enable Avalara, you will need to log in to your Avalara account and go to Settings → integrations. You will see your connections and you should see your extractors below.

Make sure they are enabled for every stores you have.

@michael73 thank you this helps and adds clarity!!

Userlevel 7
Badge +2

Hello Everyone, @michael73 @brianflaten @Yuri Dorovskikh @Sai Chettiar 

We believe this Disable Automatic Tax Calculation checkbox should work only for the internal operations such as order edits, recalculate prices, create invoices etc., 

But if the Connector tires to update the Sales Order then, Disable Automatic Tax Calculation should be bypassed. 

Example: If the order is edited and quantity went from 5 to 3 in Shopify, then with this checkbox turned on, the connector will sync and only decrease the quantity in the Acumatica Sales Order from 5 to 3 but the taxes remains the same as it is for 5 items. 

So we are planning to bypass this checkbox when the connector updates the Sales Order. 

Please let me know if you have any objections. 

Userlevel 2
Badge

@KarthikGajendran - Trying to understand expected behavior of the Tax Sync and Disable Tax calc options.   Question:  If the item is taxed in Shopify, but is ‘exempt’ in acu.   Would the expectation that the record fail in the import (because it can’t add the tax, due to it being exempt), or should it use the tax codes in the system (which match Shopify) to establish the order in ACU?

 

cheers

Userlevel 7
Badge +2

@kkeating24 During the order import, the connector forces the system to have the same taxes as in the external system. Only when the order is modified and if the Disable Automatic Tax Calculation is not turned ON then it will recalculate by contacting Avalara(Exemptions come into play here). Otherwise, it wont contact Avalara and the taxes in the Sales Order will remain as it is which will be same as in Shopify. 

Userlevel 2
Badge

@KarthikGajendran  - Thank you, so to clarify if the item is “exempt” and the taxes in shopify specify Florida State Tax, and we have “FLSTATETAX” as the default tax zone which is also mapped in substitution list to Florida State Tax, would the expectation be that it succeeds in import and does not give a fail based on the Tax Code not being found? 

Cheers

Userlevel 7
Badge +2

@kkeating24 Thats right. 

Userlevel 2
Badge

We just went through this. If you select Do Not Recalculate Taxes, it stops sending transactions to Avalara.

Be sure that whatever store you are using, Shopify in our case, is properly connected to Avalara and sending transactions properly.

It’s not enough to just enable Avalara, you will need to log in to your Avalara account and go to Settings → integrations. You will see your connections and you should see your extractors below.

Make sure they are enabled for every stores you have.

I think we also experienced this one. But 4 months have past before we start noticing. I think before we checked the Do not recalculate we need to checked the extractors as well but didn’t do it.

Thank you for this. 

Reply


About Acumatica ERP system
Acumatica Cloud ERP provides the best business management solution for transforming your company to thrive in the new digital economy. Built on a future-proof platform with open architecture for rapid integrations, scalability, and ease of use, Acumatica delivers unparalleled value to small and midmarket organizations. Connected Business. Delivered.
© 2008 — 2024  Acumatica, Inc. All rights reserved