Configuration of Taxation with Avalara

Checklist

Activate the Customer Mode Service in Avalara

Enable the Avalara Module on the Configuration Server

Install Avalara’s Middleware

Configure the Avalara Taxation Method

Define Your Taxation Parameters

Define Taxation Parameters for Customer Class

Override Taxation Parameters for a Customer (optional)

 

This chapter demonstrates how to configure and install the Avalara taxation plug-in in PortaBilling® and how to set up taxation parameters for service providers and their customers.

Checklist

Print the following page and use it to check off the operations you complete while performing the system setup according to the instructions in this chapter. Please be sure to perform all of the operations in the order designated (all of the boxes must be checked), otherwise the service will not work.

 

 

Operation

 

Done

General configuration

 

Enable the Avalara taxation module on the Configuration server

[     ]

Install the Avalara’s middleware on the admin server

[     ]

PortaBilling® configuration

 

Configure the Avalara taxation method

[     ]

Configure the taxation parameters that apply to you as the service provider

[     ]

Create a customer class and configure the Avalara taxation parameters for it

[     ]

Override the taxation parameters for an individual customer (optional)

 

Activate the Customer Mode Service in Avalara

Prior to configuring PortaBilling®, register an account in Avalara. Follow this link https://communications.avalara.com/contact-us and fill in the contact form. Select PortaOne in the Back-Office Solution list and click Let’s Get Started.

 

Activate the customer mode service in Avalara

 

An Avalara representative will contact you and lead you through the registration procedure.

 

Contact the Avalara support team (support@avalara.com) to activate the Customer Mode service. Customer Mode is mandatory for group transactions which apply to a single customer and in addition, speed up the tax calculation process. 

 

Upon successfully completing the registration procedure, you will be provided with the following information:

·       A three-valued company code to be used for taxation requests;

·       FTP credentials for the Avalara libraries download; and

·       SOAP credentials for communicating with Avalara via API.

Enable the Avalara Module on the Configuration Server

1.     On the Configuration server, clone the active configuration to modify it.

2.     From the Configuration tree select Admin->Global->Avalara and fill in the following parameters:

·       UpdateMode – Select how to update the Avalara module. Select the Enable update for specific envs option.

·       ActiveEnvs – Specify the billing environments in which the Avalara module must be updated.

·       FtpFolder – Specify your company folder created on the Avalara FTP server.

·       Specify your FTP credentials (login and password) in the FtpLogin and FtpPassword fields. These will be used to download the Avalara libraries.

 

Enable the Avalara module

 

1.     Click the Save button and then the check_apply Verify button.

2.     Verify the new configuration and click the check_apply Check / Apply button.

Install Avalara’s Middleware

3.     Log in to your PortaBilling® admin server using ssh.

4.     Run the installation script executing the following command:

 

sudo -u porta-admin PORTAHOME_WEB=/home/porta-admin/ /home/porta-admin/cron_utils/avalara_installer.pl --verbose --install per_env performance

 

The script downloads and installs the Avalara software for the defined billing environment (performance) and uploads the Avalara dictionaries to the database.

 

Wait until the installation process is complete. This may take up to several minutes.

 

_Hint_Glasses TIP: If you wish to enable taxation with Avalara for all billing environments, select the Enable update for all envs option for the UpdateMode field on the Configuration server. Then install the Avalara middleware by executing the following command:

 

sudo -u porta-admin PORTAHOME_WEB=/home/porta-admin/ /home/porta-admin/cron_utils/avalara_installer.pl --verbose --install default

Configure the Avalara Taxation Method

At this step it is necessary to configure the Avalara taxation method.

 

5.     In the  Billing section of the PortaBilling® main page, choose Taxation.

6.     Select the Taxation Plugins tab and click add Add to add a taxation plug-in.

7.     Select Avalara from the Taxation Plugin list and click the Plugin Credentials link.

 

Select th eAvalara taxation plugin

 

Specify the credentials

 

8.     Specify the plug-in credentials:

·       Login – Type your login to communicate with Avalara using the API.

·       Password – Type the password to communicate with Avalara using the API.

·       Company Identifier – Specify your three-digit company code provisioned within the Avalara system.

·       TollFreePrefixes – Define the list of toll-free prefixes separated by commas. Calls made to or from toll-free numbers are subject to separate taxation rules.

·       Home – Define the folder with the installed plugin. Type /porta_var/avalara.

·       Description – Provide the conventional description for this plugin.

9.     ClickSave to save the credentials and save_add Save to save the plug-in configuration.

Define Your Taxation Parameters

At this step you must define the taxation parameters that apply to you as the service provider. They will be used to tax the services you provide.

 

1.     On the Main Menu page click My Company.

2.     On the Invoicing & Taxation tab of the Edit Company Info page specify your taxation parameters:

·       Tax ID – Type in your taxation ID.

·       VoIP Taxation – Specify the method for taxing your VoIP services

o    Normal – This method is conservative; it returns tax on VoIP-related transactions / service type codes. VoIP services are taxed using Transaction code 19.

o   Aggressive – This method does not return tax on VoIP-related transactions / service type codes. VoIPA services are taxed using Transaction code 20.

·       Specify other relevant taxation parameters that apply to you as the service provider. Please refer to PortaBilling Help for detailed descriptions of available fields.

 

Define taxation parameters

 

3.     Click  Save & Close to save the changes.

Define Taxation Parameters for Customer Class

1.     On the navigation menu to the left, select Sales and then Customer classes.

2.     On the Create a customer class panel, fill in the customer class details:

·       Name – Type a short name for this customer class.

·       Currency – Specify the currency in which you want to set the Collection threshold. When specified, this customer class can only be assigned to customers with the same currency. Once the currency selection is saved, it cannot be changed.

·       Business model – Select which customers this customer class will apply. Select Residential VoIP from the list.

·       Managed by – Select Administrator only.

 

Create a customer class.

 

3.     Click Save.

4.     On your customer class panel, click Finances, then click Taxation.

5.     On the Taxation panel, select Avalara (US, Canada).

 

Add Avalara taxation plugin

 

6.     Specify the taxation parameters that will apply to the customers of this customer class:

·       Assess taxes – Select whether you want PortaBilling® to assess taxes at the end of the billing period for prepaid and postpaid customers or at the moment of payment for prepaid customers.

·       Tax transaction code for main balance top-upSpecify the bundle ID provided by the taxation company. This is available only for assess taxes At the moment of payment option.

·       Customer type – Select Residential.

·       Incorporated city area – Define the customer’s location: inside or outside the incorporated city area.

·       Taxation Mode – Specify which additional taxes must be calculated for a customer. For residential customers select the Non-switched trunk services option for calculating taxes based on the number of DID numbers a customer uses.

·       Lifeline assistance program – Use slider to entitle customers to a Lifeline assistance program.

·       Exemtions – Select which taxes the customers of this customer class are exempt from.

 

Define taxation parameters for Avalara

 

Complete the customer class configuration as described in the Basic Residential VoIP Service  handbook.

 

7.     Click Save.

Override Taxation Parameters for a Customer (optional)

If necessary, you can define different taxation parameters for an individual customer (e.g. customer John Doe is exempt from both federal and state taxes and is located outside an incorporated city area).

 

1.     On the navigation menu to the left select Sales and then Customers.

2.     Use the Customer search panel to search for the desired customer, e.g. John Doe.

3.     Click the customer name to enter their record.

4.     On the Customer panel, select Finances and then Invoices and Taxation.

5.     On the Invoices and Taxation panel select Taxation.

6.     Change Avalara (US, Canada) (As defined by the customer class) taxation plugin to Avalara (US, Canada).

7.     Change the necessary taxation parameters.

 

Override Avalara parameters for the customer

 

8.     Click Save.