JDE Avalara AvaTax Integration -...

© 2015 Estuate Inc. All rights reserved.

ESTUATE INC.

JDE – Avalara AvaTax Integration

JDE – AvaTax Connector

Application User Guide

Version 1.0

JDE – Avalara AvaTax Sales Order and Returns User Guide


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Table of Contents

1 INTRODUCTION .............................................................................................................. 3

2 JDE SALES ORDER - AVALARA AVATAX INTEGRATION - OVERVIEW .................................. 4

3 CONFIGURATION PREREQUISITES IN THE AVALARA ADMIN CONSOLE ............................. 7

4 AVATAX INTEGRATION PREREQUISITES IN JD EDWARDS ENTERPRISEONE ....................... 8

4.1 Setting up connection to Avalara .................................................................................................. 8

4.2 Validating addresses...................................................................................................................... 9

4.3 Enabling logs ................................................................................................................................ 13

5 ASSIGNING TAX CODE TO ITEMS OR PRODUCT CATEGORY CODE IN JDE ........................ 15

6 HANDLING TAX EXEMPTION.......................................................................................... 18

7 CALCULATE SALES TAX .................................................................................................. 19

7.1 Enter Sales Order......................................................................................................................... 19

7.2 Print pick Slip ............................................................................................................................... 21

7.3 Confirm Shipment ....................................................................................................................... 22

7.4 Print Sales Invoice (Custom report) (R5542565) ......................................................................... 23

7.5 Sales update ................................................................................................................................ 24

7.6 Review the test transaction in the Admin Console ..................................................................... 26

8 CUSTOMER CARE – JDE AVATAX CONNECTOR ............................................................... 28



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1 INTRODUCTION

When businesses starts growing, more number of resources will have to involve in managing the

tax. Each year there are hundreds of sales and use tax rate changes across the United States of

America.

Following are some of the challenges faced by the enterprise business organizations:

Too many complex Tax Jurisdictions, and change in Tax rates and rules

Imbalance between the 3rd party or ERP applications in calculating the Tax uniformly across

the business based on changing tax rates

Difference in filing the tax and the ERP systems, as the sales transactions are not in sync

with the taxation system

Complexity of considering the Sales Tax holidays at product, category and transaction level

during a sales transaction

Maintaining the exemption certificates and applying the same rules while calculating the

Tax for each business, organization, or individual.

Too much of manual tax calculation and adjustments in Accounting/ERP Tax systems, which

incurs time, money and operational inefficiencies.

The JDE – Avalara AvaTax integration solution will mitigate most of the above mentioned challenges

by integrating JD Edwards EnterpriseOne and Avalara AvaTax Application Systems. This integration

helps the business to perform the Sales Tax calculations seamlessly across JD Edwards

EnterpriseOne and Avalara AvaTax Applications.

The user guide describes how to configure and use the JDE-Avalara AvaTax integration application.



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2 JDE SALES ORDER - AVALARA AVATAX INTEGRATION - OVERVIEW

Many JD Edwards customers were making changes to their tax system and ERP applications

manually, which increases error-prone manual sales tax process. The JDE – Avalara AvaTax

Connector Application mitigates such errors in tax calculations of order transactions and invoice

processing by integrating the sales to invoice process of JD Edwards EnterpriseOne to the

respective Avalara AvaTax Tax engine components.

The JDE - Avalara adapter creates a bridge between AvaTax and JDE. The current version of JDE-

Avalara AvaTax integration supports the Sales Tax business process between JD Edwards and

AvaTax.

The Integration consists of the following areas:

1. Configuration of Avalara System prerequisites in to JD Edwards EnterpriseOne.

2. Validation Processes such as Customer Address Validation

3. Integration touch points at multiple function points during the business transaction process

The following table illustrates the various touch points in which JDE is integrated with Avalara

AvaTax through the JDE – AvaTax Connector:

Sr. # Functional Touch Points Description

1 Sales Order Creation Indicative Tax calculation at order entry level

2 Pick Slip Generation Shows the indicative tax calculated in sales order

entry level

3 Ship Confirm Re-calculates the indicative tax in case of partial

shipment

4 Print Sales Invoice Prints the sales invoice with the actual tax amount

5 Sales Update Sub-ledger updates (posting) after a successful

sales transaction, after logs are created in Avalara

AvaTax



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6 Sales Return (Credit memo) Calculates the tax (negative tax) related to any

sales returns or credit transaction

While creating sales order or generate a sales invoice report, taxes must be calculated. The order

details are passed as parameters through business functions. These business functions invoke

business services and the order details are passed to generate an XML request.

AvaTax API’s captures an XML request and the tax calculation is processed in Avalara. Once the tax

calculation is processed, Avalara sends back an XML response, which is captured by JD Edwards

business services and then sends to sales invoice report or to sales update program. The sales order

or invoice report is generated with the appropriate tax details, calculated by AvaTax.

The JDE-Avalara AvaTax Adapter helps the business to use the Order Processing and Invoice

Processing of their JD Edwards EnterpriseOne Application, seamlessly with Avalara AvaTax.

The standard JD Edwards Sales Order Management business process flow is illustrated, as follows:

Enter Sales Order

The customer orders are entered in the Order Entry form/application of JD Edwards. When

orders are entered, the system automatically pulls the customer information from the database

and displayed on the screen, whom the order has been created. Sales Order processing begins

once you complete this step.

Print Pick Slip

After entering the sales order details, pick slips are generated to authorize your warehouse

personnel to pull the merchandise from inventory to fill the quantities and prepare the order

for shipping. This is an optional step, and based on the customer business requirement this

process will be executed.

Enter Sales

Order

Print Pick

Slip

Confirm

Shipment

Print Invoice Update/Post

Sales



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Confirm Shipment

The confirm shipment process will confirm that, all items on the Sales Order are correctly

picked from the warehouse and packaged appropriately for shipping.

Print Invoice

The Print Invoice process will generate the sales invoice report, after the shipment

confirmation. The sales invoice will be send to the customer for receivable transaction.

Update/Post Sales

After the successful sales transaction and invoice generation, the transaction has to be posted

to various sub-ledgers like Accounts Receivable, Inventory on-hand balances, Sales and

commissions information, and Pricing.

After updating sales, you must post the sales journal and invoice batches to the General Ledger.

This step completes the Sales Order processing cycle.

Tax will be calculated during Sales Order, Confirm Shipment, Print Invoice, and Update/Post Sales

processes. Integration points are added at all these intervals to bring back tax from Avalara and

store it in JDE.



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3 CONFIGURATION PREREQUISITES IN THE AVALARA ADMIN CONSOLE

To use the Avalara AvaTax, the companies require an active account with Avalara AvaTax engine.

The following URL from Avalara describes, how to create and activate an account in Avalara AvaTax

engine:

https://help.avalara.com/000_AvaTax_Calc/000AvaTaxCalc_User_Guide/001_AvaTax_Setup_Assist

ant/000Activate_and_Configure_Your_Avalara_AvaTax_Account

Following are the steps and prerequisites in creating and activating the Avalara AvaTax account:

Create the Customer specific Avalara AvaTax Account

The customer will be provided with an account number and license key

Create the company setup with company code

Activate the account

Configure the account in Admin Console as per the business requirement.

Some of the configuration items are setting up nexus jurisdictions, creating exemption

certificates, and product and service specific tax setups and profiles.

https://help.avalara.com/000_AvaTax_Calc/000AvaTaxCalc_User_Guide/001_AvaTax_Setup_Assistant/000Activate_and_Configure_Your_Avalara_AvaTax_Account

https://help.avalara.com/000_AvaTax_Calc/000AvaTaxCalc_User_Guide/001_AvaTax_Setup_Assistant/000Activate_and_Configure_Your_Avalara_AvaTax_Account



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4 AVATAX INTEGRATION PREREQUISITES IN JD EDWARDS ENTERPRISEONE

The JD Edwards EnterpriseOne – Avalara AvaTax connector comes with a configuration page, which

helps the customers to setup and configure the connectivity between JD Edwards EnterpriseOne

and Avalara AvaTax.

After the connector has been deployed successfully and Avalara AvaTax account has been

activated, the customer can configure the setups in the configuration page of connector.

After the configuration the connector can be tested using the Ping Test as well as having a

transaction processing with the Avalara AvaTax Connection on.

4.1 SETTING UP CONNECTION TO AVALARA

Before setting up the connection to Avalara AvaTax, ensure that the following information is

available:

Avalara Account Number

Avalara License Key/Code

Avalara Username and Password

Company Code

The configuration setup or modification to the configuration can be done through the Configuration

Page of connector, “Avalara Configuration”. Fast Path for the “Avalara Configuration” page is

P55001.

Follow the below steps to configure the connection settings of Avalara AvaTax.

1. Navigation: From the JD Edwards application, click Enterprise One menus > Avalara Integration

> Avalara configuration or enter P55001 in the Fast Path field. The Avalara Integration page

will be displayed.



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Note: The Profile Adapter, Profile Name, Profile Client, and Profile Machine fields are

automatically populated based on the logon information and are read-only. Some fields are

greyed out as it will be company specific.

2. Type Y in the Avalara Active Y/N field.

3. Enter the production URL provided by Avalara in the Service URL field.

4. Enter the license key and account number provided by Avalara in the License Key and Account

Number fields.

5. Click Ping Connection to test the connection between Avalara and JDE. If Avalara is disabled or

deactivated, the Ping Connection button will not be displayed.

4.2 VALIDATING ADDRESSES

The address can be validated against Avalara addresses through the JDE Avalara AvaTax connector.

In the current version of the connector the address can be validated before sales order transaction

or at Sales Order entry level, while adding or modifying the address.



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4.2.1 Address validation before sales order transaction

You can validate your customer addresses or any other addresses by any of the following ways

before Sales Order transaction:

Validate on Address book revision application

Batch program (Address validation report)

Validate on Address Book Revision application

Before you validate the address, you must select the Country code, for which you want to validate.

Do the following steps to select the country code for address validation:

1. On the Avalara Integration page, click the Address Validation tab.

2. Select the Address Validation check box and then, select the Country code that you want by

using the Visual Assist option.

3. Click the Save button.

For example, to validate US country’s address, enter P01012 in the Fast Path field. On the Work

with Addresses tab, find and select your existing customer or add a new customer by using the

Add or Update existing address button on the Mailing tab. Then, click the Validate button.



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If the entered or updated address is valid, the following dialog box is displayed. If the entered

address is invalid, failure message will be displayed.

Batch program (Address Validation Report)

You can validate the address by running address validation report (R55100) through the batch

program.

Do the following steps to run an address validation report:

1. On the Avalara Integration page, select Address Validation Report (R55100).

2. Enter R55100 in the Batch Application field.

3. Find and select the address validation version.

4. On the Data Selection page, select the Address Number F0116 (AN8) [BC] in Left operand field.

5. Provide the list of addresses in the Address Number field

6. Click OK.

After the successful completion of the report, the Success/Failure column displays the SUCCESS

or FAILURE message from Avalara, as shown in the following example.



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4.2.2 Address validation on sales order entry (P4006)

The shipping address can be overridden on any Sales Order form by using the Sales Order page. This

helps you in shipping items to a different location other than the address that is mentioned in the

address book.

Do the following steps to override the shipping address:

1. After entering the Sales Order header information, select the order address from the Form

menu.

2. Provide another address for shipping on the Order Address Information page.

3. Click the Validate button.

Note: The Validate button is enabled only for the county code that you selected on the

Configuration page. For other country codes, the Validate button is disabled.

The address entered on the Address Override page will be saved in the F4006 (order address

information) table and the P4006 application. You must validate the address that you enter

manually on the override page and then save the Sales Order.



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4.3 ENABLING LOGS

You can enable log files for all transactions between JD Edwards and Avalara by using the JDE-

Avalara Sales Order integration.

Do the following steps to enable logs:

1. On the Avalara Integration page, click the Logs tab or enter P55001 in the Fast Path to navigate

to the Logs tab.

2. Select the Enable Logs check box.

3. If you want to view audit logs or error logs for particular transaction, select the Audit Logs

check box or the Error Logs check box. If you want to see both error and audit logs, select both

the check boxes.

4. Click the Save button.

You can view the audit logs or error logs from the Avalara Integration page, select Avalara Log

Information > Audit Logs/Error Logs. Then, find your order number and check whether logs

were created.



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5 ASSIGNING TAX CODE TO ITEMS OR PRODUCT CATEGORY CODE IN JDE

When a sales order is created we should first validate if particular customer is taxable or tax

exempt. If the customer is taxable, then

a. Tax code assigned to Item level

b. If Tax code is not present or entered at item level, enter the tax code in item category level.

c. If Tax code is not present or entered in category level also the tax is calculating on ship to

address by default.

To assign a tax code at Item levels go to the navigation:

‘Enterprise One Menu >- Logistics management >-Inventory Management >-Daily processing >-

Inventory master/Transaction >- Item master or enter P4101 in fast path.

On Item Master application form find and select your item or entered new item and assign tax code

to item in tax code field by using the visual assist on Item master revisions application form.

The Tax code field (Custom field) is newly added in Item master revision form.

The Item Tax code is updated in custom table F554101 table (Tax code table).

If you want to assign tax code to Item category level go to ‘Enterprise One Menu >- Logistics

management >-Inventory Management >-Daily processing >-Inventory master/Transaction >- Item

master or enter P4101 in fast path.



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On Item Master application form find and select your Item, select category codes from Row menu.

Check the sales category code 4 field to know what type of product/item and based on that select

tax code in Tax code field by using visual assist.

The Tax code field (Custom field) is newly added in Item category codes application form.

The Item category Tax code is updated in custom table F554102 table (Tax code table1).

Prerequisites:

Before going to assign tax code to item or category level, you create a user defined code like what

tax code Avalara have in their system.

To define user define code for tax code enter UDC in fast path >- Enter 55 in product code field >-

Enter 02 in user defined code field. And add the tax code.



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6 HANDLING TAX EXEMPTION

If you want create a sales transaction with tax exempt Ship to address(billing address) you have to assign

Tax Exemption certificate number to particular ship to customer.

If you assign tax exemption certificate to particular customer you will get ‘ZERO’ Tax from Avalara for

that sales order.

To assign Tax Exemption certificate to customer address, enter P01012 in fast path.

On work with address form find and select your customer, select Additional 1 tab in address book

revision form and enter tax exemption certificate number in Tax Exempt certificate field.

Note: You have to assign tax exempt certificate to only for ship to customer (Destination) because Tax is

calculating on destination address (ship to).



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7 CALCULATE SALES TAX

After installing and configuring Avalara AvaTax for JDE, you are ready to begin generating sales tax

calculations for your organization.

Steps to Test your Tax profile

Assign Tax explanation code-S and Tax rate Area id –e.g. Avalara/DEN…for ship to address.

Send a test transaction to Avalara AvaTax from your accounting software

a. Use an address in a state the company has nexus.

b. Use an item mapped to a tax code.

c. Include a freight line like FR or FR020100.

d. If applicable, include an exempt customer

7.1 ENTER SALES ORDER

To create a new sales order navigates to Enterprise one Menus >- Order management >- Sales order

Management >- Daily SO Management Processing >- SO processing >- Enter orders header or use the

fast path P4210, Click on “+” button to add a new Sales Order Entry.

On “Details Review” tab enter values for the below mentioned fields

Branch/Plant : Enter the Branch/Plant code from which the item should be retrieved to fulfill the

sales order



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Sold To : Enter the address book number that corresponds to the client address to which the

invoice for this order should be sent.

Ship To : Enter the address book number that corresponds to the client address to which the

items that are associated with this order should be sent

Line Details

Quantity Ordered : Enter the number of pieces of an item that the customer wants to order

Item Number : Enter the alphanumeric identification number of the item that the customer wants

to order.

Ln Ty : Enter a code that controls how the system processes lines on a transaction.

S : Stock item.

J : Job cost.

N : Non stock item.

F : Freight.

T : Text information.

M : Miscellaneous charges and credits.

W : Work order.

Unit Price : Review the list or base price to be charged for one unit of this item

Extended Price : Review the system-calculated extended price. This price is the number of units

multiplied by the unit price.

Last Status : Review this field to determine the last step in the processing cycle that this order

line has successfully completed.

Next Status : Review this field to determine the next step in the order flow of the line type.

Once the SO data is entered and saved, there is a call to Avalara at this point. The “Indicative Tax” field is

filled with the tax value based on the item and quantity of the SO order.

Example:

a. Sold to:-4242

b. Ship to:-4242

c. Order date:-01/07/2015

d. Enter Item number 220 in first line.

e. Enter Item number 230 in second lines

f. Enter Fright line item with unit price 1000 and the line type is ‘F’



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g. click save

To see the Indicative tax amount find your order and see Indicative Tax field in sales order header level

and line level. And the same tax amount storing in F4211 table under user Amount field.

7.2 PRINT PICK SLIP



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To Print a pick slip navigate to Enterprise one Menus >- Order management >- Sales order

Management >- Daily SO Management Processing >- SO processing >- Print Pick Slips (R42520).

On “work with batch versions” Application follow the below mentioned value.

Prerequisites:

A status code for printing pick slips is set up in the order activity rules.

The next status on your sales orders is set to print pick slips.

Choose Available Versions : Use the available versions form to select a version of the batch

program. In your work environment, the system might display

additional versions.

Submit Version prompting : Use the Version prompting form to access form to data selection and

data sequencing for the batch program. If the data selection or data

sequencing option is disabled, you cannot review or change the data

selection or sequencing for the version.

Data selection : Use the data selection form to specify which records the system should

retrieve from the database. Select the document (order number, Invoice

etc.)(F4211)(DOCO)(BC) on dropdown list available in left operand field.

Select is equal to on comparison field, choose literal on dropdown list

available in Right operand field.

Enter order number : Use the select literal value form to specify the values that the system

retrieves from the database. You can specify a single value, range of

values, or list of values to enter an order number. Once enter the order

number click ok.

Processing option : Use the next status from the processing option to specify the status

code range that the system uses to select order for pick slip processing.

And enter the required data on display and process tab then click ok to

print a report.

7.3 CONFIRM SHIPMENT

To confirm a shipment navigate to Enterprise one Menus >- Order management >- Sales order

Management >- Daily SO Management Processing >- SO processing >- Confirm shipment or enter P4205

in fast path.

On “work with confirm shipment application” enter values for the below mentioned fields.

Prerequisites

A status code for shipment confirmation is set up in the order activity rule



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The next status on your sales orders is set to shipment confirmation.

Select orders available for shipment confirmation : Use the work with shipment confirmation form to

search for and select orders available for shipment confirmation.

Enter the order number which you want to ship and click find, and then select available order.

Shipment Confirmation : Use the shipment confirmation form to verify the shipment information for

the sales order detail line. And then select the line and click ok.

Partial shipment : If you want to go partial shipment adjust the quantity in quantity shipped and

secondary quantity shipped field available in confirm shipment form and click ok.

Once confirm the shipment, there is a call to Avalara at this point. In case of partial shipment the system

recalculate the tax and update the Indicative tax field on customer service Inquiry form.

7.4 PRINT SALES INVOICE (CUSTOM REPORT) (R5542565) To Print a sales Invoice, navigate to Enterprise one Menus >- Order management >- Sales order

Management >- Daily SO Management Processing >- SO processing >- Print Invoice (R5542520).


Prerequisites

A status code for printing invoices is set up in the order activity rules.

The next status on your sales orders is set to print invoices.










etc.)(F4211)(DOCO)(BC) on dropdown list available in left operand field.



Enter order number : Use the select literal value form to specify the values that the system

retrieves from the database. You can specify a single value, range of

values, or list of values to enter an order number. Once enter the order

number click ok.



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Processing option : Specify the from and to status codes, enter the Invoice document type,

designate the Invoice date and then click ok button.

There is a tax touch point at the time of sales Invoice Print. Once Invoice print report is completed

successfully data will be updated in custom table F554211 table with tax amount and shown the same

tax in print Invoice report.

7.5 SALES UPDATE

To run a sales update process navigate to Enterprise one Menus >- Order management >- Sales order

Management >- Daily SO Management Processing >- End of day processing >-update customer sales

(R42800).


Prerequisites

A status code for update customer sales is set up in the order activity rules.

The next status on your sales orders is set to update sales.






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etc.)(F4211)(DOCO)(BC) or select Document (Voucher or Invoice

etc.)(F4211)(DOC) (BC) on dropdown list available in left operand field.



Enter order number or Invoice number : Use the select literal value form to specify the values that

the system retrieves from the database. You can specify a single value,

range of values, or list of values to enter an order number. Once enter

the order number or Invoice number click ok.

Processing option : Specify A/R Invoice date and G/L date and then click ok button.

At the time of Sales update there is a call to Avalara and it will creates a logs in Avalara with Invoice

number as a document number.

After completion of the sales update program (R42800) successfully the system generates:

Information about customer sales.

Accounts receivable (AR) and general ledger (GL) entries.

Sales for different categories, such as stock sales and freight, cost of goods sold (COGS), and profit

percentages.



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Errors that result from running the program.

7.6 REVIEW THE TEST TRANSACTION IN THE ADMIN CONSOLE

Do the following tasks to review the test transaction details:

1. Login to Avalara AvaTax Admin console.

2. Click the Transaction tab.

3. Select the company from the Company drop-down.

4. Enter the invoice number in the Doc Code field.

5. Select the date range that you want in the Date Range field.

6. Click the Find/Search button. The details of the logs created for each of the transaction made

through JD Edwards EnterpriseOne is displayed, as in the following example.

Each of the transaction log can be further drilled-down to the detail level of information for a

specific transaction.



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The following example shows the detailed view of a specific transaction:



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8 CUSTOMER CARE – JDE AVATAX CONNECTOR

Customer Support

Email : [email protected]

Sales Enquiry

Email : [email protected]

Phone : +1 408 400 0680

Website : http://www.estuate.com/

© Estuate, Inc. 1183 Bordeaux Dr, Suite 22 Sunnyvale, California 94089

Phone: +1 408 400 0680

Fax: +1 408-400-0683

mailto:[email protected]

mailto:[email protected]

http://www.estuate.com/

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