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Ability or process for tax corrections when using Avalara integration

Ability or process for tax corrections when using Avalara integration

We would like an ability or process for handling tax corrections when using Avalara Integration


Use Case:

A customer moves from taxing jurisdiction to a non-taxing jurisdiction in January but does not communicate until August. The customer now wants a refund on all taxes paid from January to August. We would like the ability to correctly account for the tax part of the refund transaction in zuora ie. credit A/R and debit Sales Tax Liability.


This includes invoices that are either fully paid or in a closed period or both.

1 Comment
Zuora Alumni
Status changed to: Coming Soon



This sounds like something we will be able to address with our upcoming credit/debit memo capability. In this case, the process would work as follows:

1. In Avalara, process the jurisdiction change in Avalara and obtain the expected refund amount. In some cases, the jurisdiction change could result in additional tax liability (as opposed) to a refund.

2. In Zuora, create a credit memo (in case of refund) or a debit memo (in case of additional tax liability). You will be able to set the accounting codes to ensure that the journaling is handled appropriately.


Refund: The credit memo can be refunded to the customer. Addl. Tax Liability: The debit memo will be an additional receivable the customer must settle.


Will this meet the use case? Thanks.