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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 Product Team
Status changed to: Coming Soon

Hi,

 

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.