Avalara integration overview

Overview

The Avalara integration requires the Receivables add-on plan. See Get started with Receivables for access details.

Connect your existing Avalara account to calculate sales tax on Receivables invoices and credit notes. Avalara remains your system of record for sales-tax compliance and filing.

This integration is available for eligible US-based businesses that use QuickBooks Online with Receivables. You need an Avalara account before connecting it.

Connect Avalara to Receivables

Users who can manage Receivables settings can connect Avalara from Receivables settings. In General, select Tax, then select Connect Avalara.

Enter the following details from Avalara:

  1. Your Account ID, License key, and Company code.
  2. The Tax commit timing: commit tax On finalization or On full payment.
  3. The required sales-tax-payable GL account.

Select Connect Avalara to finish setup. If you use QuickBooks Online, first disconnect Avalara from QuickBooks Online to prevent tax from being calculated twice.

Configure Avalara customer and product tax codes

In Receivables settings, open Tax to review product and customer mappings. Map each taxable product to an Avalara tax code before you use it on an invoice. Non-taxable invoice lines use Avalara's non-taxable code and do not need a product mapping.

You can also associate a customer with an Avalara customer code. If no Avalara customer code is mapped, Ramp uses the Ramp customer ID when it requests a tax calculation.

For a taxable invoice, provide a customer, invoice date, currency, and a shipping address. Ramp uses the billing address if the invoice does not have a shipping address.

Understand Avalara tax on invoices

Ramp calculates tax while you prepare eligible invoice line items and updates the invoice total with the Avalara amount. When you open an invoice, Ramp creates its Avalara tax transaction. The transaction can remain uncommitted until its configured commit time.

With On finalization, Ramp commits the Avalara transaction when you finalize the invoice. With On full payment, Ramp commits it only after the invoice is fully paid or overpaid. Voiding an invoice voids its Avalara transaction after Avalara confirms the void.

For an invoice with committed Avalara tax, applying a credit note creates a corresponding Avalara return transaction using the tax rate from the original invoice date. With On full payment, a partial credit note on an uncommitted invoice waits for payment before Ramp creates the return. A credit note that fully settles an uncommitted invoice voids its original Avalara transaction instead. If you edit an invoice after its tax period is locked, issue a credit note instead.

Review Avalara tax in QuickBooks Online

Ramp sends Avalara-calculated tax to QuickBooks Online as a separate Sales Tax line item mapped to your tax-liability account. The QuickBooks Online invoice total remains accurate, but its Sales Tax Center and tax-liability reports do not include these Avalara transactions.

Use Avalara reports for sales-tax reporting and filing rather than the QuickBooks Online Sales Tax Center.

Troubleshoot Avalara tax calculations

Ramp cannot calculate tax until Avalara can respond. Check that your Avalara connection is active, the invoice has a customer and valid shipping or billing address, and every taxable product has an Avalara tax code.

If you need to replace your Avalara connection, open Tax in Receivables settings and select Disconnect. Confirm the disconnection only after reviewing any pending unfinalized tax transactions. After you disconnect, future invoices no longer calculate tax with Avalara.