Avalara Integration

Avalara is a tax-compliance software package that integrates with many business applications, including DEAR.


DEAR's integration with Avalara means that DEAR customers can calculate actual taxes of sales going to specified shipping addresses directly from within the system. For tax-exempt customers, sales will also reflect zero taxes paid.


Avalara Integration is currently available for DEAR business users in the US and Canada. The Avalara Integration page in DEAR will only show up for customers based in these countries.



Some Things to Consider

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  • To have access to the Avalara Integration page:
    • DEAR users with organisations based in the USA and that have already integrated QuickBooks Online with DEAR must have auto-tax lookup enabled.
    • XERO organisations connected with DEAR must not have enabled Avalara integration.
  • If Avalara is integrated with DEAR and the B2B portal is connected to DEAR, taxes are calculated on the B2B Checkout page, based on Avalara's data.
  • In DEAR POS, all taxes will still be calculated based on the DEAR POS Sale Tax or Outlet Sale Tax. DEAR POS does not depend on Avalara integration.


Integrating DEAR with Avalara

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There are differences between integrating Avalara for DEAR accounts connected to QuickBooks and XERO, and DEAR accounts that are not connected to the two systems.


To Integrate DEAR Accounts Connected to QuickBooks or XERO

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The process for integrating DEAR accounts with Avalara is simple, particularly if DEAR has also been integrated with QuickBooks and XERO.

  1. Go to Integrations > Avalara.
  2. On the Avalara Integration page, the Settings tab is open by default. Enter your Avalara account ID and licence key, which you can find on your Avalara Admin page, and select your company from the list.
  3. Click Save.


To Integrate Non-QuickBooks or XERO-Connected DEAR Accounts

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The process for integrating DEAR accounts that do not have integrated QuickBooks and XERO to Avalara is a little more complicated but still relatively easy.

  1. Go to Integrations > Avalara.
  2. On the Avalara Integration page, the Settings tab is open by default. Enter your Avalara account ID and licence key, which you can find on your Avalara Admin page.
  3. Optionally, select the appropriate company addresses from the Point of Order Origin and Point of Order Acceptance lists. If your company address is not on any of the lists yet, click the button next to the boxes, enter your company address on the Add Company Address window, making sure to enter the required information on the boxes marked with an asterisk (*), then click Save.
  4. Back on the Avalara Integration page, click Connect.


Setting Up Tax Codes in Avalara via DEAR

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Once DEAR and Avalara are integrated, you can set up tax codes for your products in DEAR, then upload them to Avalara.


To Edit a Product's Tax Code

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You may edit tax codes for individual products via the Avalara Integration page.

  1. Go to Integrations > Avalara.
  2. On the Avalara Integration page, click the Tax Codes tab to open the Tax Codes page, where a list of your products with their Product SKUs and Names from DEAR and the Tax Codes from Avalara are displayed. 
  3. By default, Avalara sets tax codes for all products as P000000. Look for the products to be edited. You can use the Search box to search by SKU or product name, or you can use the filters at the top to search for products, categories, brands and product tags. 
  4. Once you find the product to be edited, click its tax code to enable it for editing.
  5. Enter the new tax code for the product, then click Save

To edit more products, repeat Steps 3-5.


To Edit Product Tax Codes in Bulk

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You may edit tax codes of products in bulk as well.

  1. Go to Integrations > Avalara.
  2. On the Avalara Integration page, click the Tax Codes tab to open the Tax Codes page, where a list of your products with their Product SKUs and Names from DEAR and the Tax Codes from Avalara are displayed.
  3. By default, Avalara sets tax codes for all products as P000000. Look for the products to be edited. You can use the Search box to search by SKU or product name, or you can use the filters at the top to search for products, categories, brands, and product tags.
  4. Click the Bulk Setup button. After clicking on it, the list becomes enabled for Bulk Update mode, with checkboxes appearing near each product on the grid. 
  5. Check the products to be edited from the grid, then set their tax codes.
  6. Click Save.

NOTE: Clicking the Refresh button on the Tax Codes page refreshes the list of products with the latest data from DEAR.


Setting DEAR to Recognise Tax-Exempt Customers in Avalara

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If you have tax-exempt customers set up in Avalara, you need to enter the customer code from DEAR in the customer's exemption record in Avalara so that all sales in DEAR will reflect the customer's tax-exempt status.


Steps in DEAR

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You need to get the customer code from DEAR first.

  1. Go to Sale > Customers, then on the Customers page, search for the record of the tax-exempt customer.
  2. Click the customer record and note down the customer code from the URL address, which is the in the following format: https://inventory.dearsystems.com/Customer#<CustomerCode>. Copy the customer code – you will need this to set up the customer's tax-exempt record in Avalara (see Steps in Avalara).


Steps in Avalara

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After getting the customer code from DEAR, you can set up the customer's tax-exempt record in Avalara.

  1. On Avalara, go to Exemptions, and create a new or edit an existing customer.
  2. On the Customer Code field, enter the customer code from DEAR (see Steps in DEAR).
  3. Add an exemption for the customer using either the Add an exemption or View Exception > Add an exemption button. 


Once you've set up the exemption record, all further sales in DEAR from the tax-exempt customer will have zero tax calculated.


NOTE: If you need assistance in setting up your customer's exemption records in Avalara, you may check out the following article from the Avalara Help Center: https://help.avalara.com/001_Avalara_AvaTax/000_AvaTax_Update/Manage_Exempt_Customers_Using_AvaTax_Exemptions.


Synchronising DEAR and Avalara

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Sales orders in DEAR can be synchronised with Avalara. Any updates to sale orders in DEAR mean that data in Avalara related to these orders are also updated during the synchronisation process.

  1. Go to Integrations -> Avalara.
  2. On the Avalara Integration page, click the Synchronisation tab. 
  3. On the Synchronisation page, a list of sale tasks that will be or have been synchronised with Avalara is displayed. The status, date, sale order number, and error/comments of each sale task on the list is displayed.
  4. You can filter the list by status (Pending, Success, Failed, Skipped or Completed). You can also use the Search box to perform a search by sale number or customer name. 
  5. Once you are satisfied with the list, click Start Synchronisation.

NOTE: Clicking the Refresh button on the Synchronisation page refreshes the list of sales with the latest data from DEAR.


What Happens During Synchronisation

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  • New Tax Rules received from Avalara will be created in DEAR.
  • In Avalara, authorised invoices are generated for all sales transactions that have not been uploaded to Avalara or have been edited since the last synchronisation. 
  • DEAR receives tax rules for each product in the Sale tasks from Avalara. 
  • If the tax rule received from Avalara has not been created in DEAR already, these are created in DEAR.
  • If a standalone Credit Note is synchronised with Avalara, the billing address from the credit note is used as the shipping address. 
  • Avalara calculated sales and credit notes are exported to Xero and QuickBooks Online. 
  • Depending on how its online auto tax lookup module is set up, QuickBooks Online may change tax rule names.

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