Integrate and use Avalara AvaTax automated sales tax software with Q360

Prerequisites

• Your system is updated to Q360 version 10.01 or later
• You have an active AvaTax subscription
• Make sure that Director is configured. For more information, see the topic Director Setup.
• Ensure there are no conflicting customizations to the procedures Total_Invoice, Total_Order and Total_Quote

Configure API settings

To configure your Q360 setup with API integration for AvaTax:

1. Go to Maintenance > API Configuration
2. Click the AvaTax tab and enter the following details:
   • Account ID: Your AvaTax Account user ID
   • License Key: The license key associated with the AvaTax account
3. Save
4. Click “Test Service” to ensure AvaTax is correctly configured

Configure setup in Avalara website

Login to the Avalara AvaTax product login site, then go to Manage Company settings. In the Company Code field, enter the Q360 company number (e.g. 01). This maps the Q360 company number to the company name in the Avalara site.

Configure setup in Tax Applicable Codes

Tax applicable codes are what end users will see as options for charging tax on quotes, orders, and invoices.

To set up tax applicable codes:

1. Go to Accounting > Admin > Tax Applicable Codes
2. Click the ADD (+) button to create the following entries:
   • AVA-TAX: Taxable master items
   • AVA-EXEMPT: Taxable master items
3. Enter details, and set Service field to Avalara
4. Save

Upon initial deployment of AvaTax, all master items are automatically assigned the tax code AVA-TAX.  To designate a master item as non-taxable, open a Master record and set the TaxAPICode field to AVA-EXEMPT.

If other types of taxation are required, change the Master record TaxAPICode field to the desired code (e.g. MAINT and PROFSERV).

Configure Ship Site in Branch General Codes

Verify Site No column is completed in Branch General Code.  This value should correspond to your branch site number in Q360.

Determine Site number:

1. Go to Accounting > Admin > Company Setup
2. Search for company
2. Click on Customer No. hyperlink.  Customer record will open
2. Click on Sites tab
2. Copy the Site No link corresponding to the desired site/branch

Configure setup in Tax API Code Maintenance

To use Avalara AvaTax, user must create API tax codes to indicate how each master item type is to be handled. There are several master item types in Q360 to differentiate items such as equipment, freight, and labor:

 

A	Asset master types are used for physical, serialized inventory
Q	Quantity master types are used for physical, quantity-tracked items
K	Kit master types are for kitted items or packaged goods
L	Labor master types are used for labor-related work such as training and consulting
F	Freight master types are used for shipping and handling charges
M	Miscellaneous master types are used for other non-physical items such as warranty, training courses, and maintenance contracts
S	Service master types are used for sub-contractor services
B	Budget master types are used as a placeholder for items.  This is most commonly used in quotes for estimating costs. Typically, when the quote is processed and a project is created, the project manager will add the actual part with a another item type assigned.

All API tax codes must be set up in Q360.

Set up APT Tax Codes:

1. Go to Accounting > Admin > Tax API Code Maintenance
2. Click the ADD (+) button
3. Create entries for the following API tax code with the settings:
   

   Tax API Code	Title	Type	Def
   A	Equipment	A	Y
   B	Equipment	B	Y
   F	Freight	F	Y
   K	Equipment	K	Y
   L	Labor	L	Y
   M	Equipment	M	Y
   MAINT	Maintenance	M	N
   PROFSERV	Maintenance	M
   Q	Equipment	Q	Y
   S	Subcontractor	S	Y

4. Keep this grid open displaying all the entries, as you will need to reference it in the next section

 

Multiple tax applicable code entries with the same master item type can be added if needed. This is typically required for the following scenarios:

• Multiple M type entries to separate miscellaneous supplies, material, and maintenance contracts
• Multiple L type entries for different types of labor that require different kinds of taxation. For example, Installation Labor versus Professional Service work such as Engineering, Training and Project Management

Configure setup in Tax API Code Service Maintenance

After API tax codes are entered in Q360, they must be mapped to AvaTax tax codes. For more information about specific codes to add to Q360, see the Avalara website page Get AvaTax codes for goods and services.

To map AvaTax codes in Q360, complete the following steps for each of the entries you added in the previous section:

1. Go to Accounting > Admin > Tax API Code Service Maintenance
2. Click the ADD (+) button to create a new entry
   • API Tax Code: The code from the Tax API Code Service Maintenance grid from the previous section
   • Tax Dist: The tax applicable code representing the AvaTax service
   • Service Code: The corresponding AvaTax tax code
3. Repeat the above steps for each entry.

The table below is an example in the Tax API Code Service Maintenance grid.

Tax API Code	Tax Appl.	Service Code
A	AVALARA	P0000000
B	AVALARA	P0000000
F	AVALARA	FR020100
K	AVALARA	P0000000
L	AVALARA	S0000000
M	AVALARA	P0000000
MAINT	AVALARA	SW000000
NOTAX	AVALARA	NT
PROFSERV	AVALARA	SP156226
Q	AVALARA	P0000000
S	AVALARA	S0000000

Tax Applicability

• To research how Avalara determines tax applicability of an item in Q360, you may look up the Q360 Master’s associated Tax API Service Code for Avalara by following the steps found here:
  • https://help.avalara.com/Avalara_AvaTax_Update/View_the_taxability_matrix
  • Note: the use of Avalara tools may require a valid Avalara login