Avalara - Commit Tax Transactions
Posting Invoices to Accounts Receivable does not communicate with Avalara to commit the transaction. This is to avoid a crash in invoice posting if the application is unable to communicate with Avalara. Instead, the invoice posting application posts the tax transactions to the new Avalara Tax Queue file (AVTAXQUE). The Commit Tax Transactions application commits the transaction to Avalara in a separate step and can be scheduled through deferred processing after invoice posting has completed.
If the AvaTax service is unavailable when invoices are printed, tax amounts are estimated when written to the tax queue. When the commit is performed, taxes are recalculated and committed. There may be a difference in the amount estimated and the final calculation. In this case, distributions need to be offset to make up for the difference in tax liabilities. The original tax account defined in the tax code file will be adjusted and the offset will be posted to the Tax Adjustment Account defined in Global Setup-> Add-Ons-> Avalara Integration.
Here is an example of the commit journal where there was a difference between estimated amount and final committed amount including distributions.
Original estimated tax amounts are for an address in the state of Missouri:
When the invoice is posted the following distributions are created:
21020626-000000 Missouri Sales Tax Payable 3.23CR
21020626-000000 Missouri Sales Tax Payable 2.69CR
The actual tax amounts calculated by Avalara are:
Posting creates these adjustment distributions:
Distributions: 21020626-000000 Missouri Sales Tax Payable .01CR
21020626-000000 Missouri Sales Tax Payable .95
21020626-000000 Missouri Sales Tax Payable 1.34CR
00001010-000000 Tax Adjustment Account .40
Here is a sample posting journal with the headings changed and the G/L Journal Source printed. This is also an example where the distributions are different between the county and the district but no adjustment is necessary.