Thanks for your feedback. You are correct, when tax inclusive is used when you are trying to create an IIA and Avalara integration is used, this 0.01 rounding issue could happen because IIA "taxInclued = false" is hardcoded in zuora application.
The workaround is turn off "calculate IIA tax with Avalara" temporarily. Our product roadmap is using Invoice Settlement feature to replace IIA, so our apologies that we cannot provide an ETA of the IIA+Avalara integration fix/improvement ETA yet. Reference https://knowledgecenter.zuora.com/CB_Billing/Invoice_Settlement
Invoice Settlement is in limited availability status, if you are interested, please reach out to your Zuora account manager for more information.
Please also note Invoice in Tax Inclusive Mode has limitation when created from invoices.
The workaround is much easier. You can check https://community.zuora.com/t5/Billing-Payments/How-to-only-credit-back-the-invoice-taxation-item/m-p/29474
Feel free to let us know if you have further concerns.
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Sometimes it is the case where there is a 0.01 balance due on an INV after attempting to fully reverse the INV amount using IIA transaction(s). The variance is caused by a design flaw in the integration between Zuora and Avalara where the taxIncluded flag in the API call is set to TRUE for INV transactions and set to FALSE for IIAs. Please configure the taxIncluded flag for INV and IIA transactions so the same value is sent to Avalara for both. OR Allow customers to configure the taxIncluded flag themselves and allow us to control the value via the Zuora UI, Avalara tax configuration. Related article: Issue Invoice has amount of 0.01 remaining
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