Currently in Beta

Workamajig is partnering with Avalara to provide sales tax determination and filing services. This is a new Beta feature. Contact support@workamajig.com for more information.

Technical Consideration

Before you continue, please read!!

Avalara charges users for the number of API calls/transactions made to their system through 3rd-Party integrations. Your contract terms with Avalara will define how much you are charged.

Workamajig's integration with Avalara is done through API calls/transactions. Some examples are creating an invoice or estimate, checking an invoice status, validating an address, and other lookups. Avalara does not consider all of the API calls/transactions to be equal. Avalara has a system of Full and Partial calls/transactions that are defined by Avalara. For example, creating an invoice counts as 1 call/transaction but some lookups only count as 1/10 a call/transaction (this could be different depending on your contract details with Avalara).

Workamajig actively tries to limit the number of API calls/transactions made in the application. Multiple API calls/transactions are done for each invoice along with other supporting lookups. These are considered by Avalara to be a mix of Full and partial calls/transactions and you will be charged accordingly based upon your Avalara contract.

Billing Consideration

Split-Billing
Avalara is unable to calculate taxes for client invoices created via the Split-Billing process.

Advance Billing

Advance Billing Invoices are not included in the Avalara processing. Only the revenue invoices that are associated with the Advance Bill will be processed via Avalara. To apply sales taxes to an Advance Bill Invoice, add an additional line to the invoice for the amount of anticipated taxes and set the line subject to Sales Tax. For more information, please see: https://support.workamajig.com/hc/en-us/articles/10399326781972-Advance-Billing-and-Taxes-FAQ

NOTE: Advance Bill invoices that were created prior to activating Avalara, and have zero Unapplied Advance Bill value and still have a remaining unapplied tax amount, must be cleared prior to activating Avalara.

Avalara Overview

Client invoices will be generated in Workamajig. The invoices will be passed to Avalara to obtain the appropriate sales tax and the sales tax amounts will be set on the invoice in Workamajig. The tax calculation uses both the address for the invoice and the item/service being billed for the calculation. The application of sales taxes will be applied at the lowest level billed.

Workamajig has been designed that for all Time and Material billing, the system will obtain the sales tax code from the lowest level of Service and Items, regardless of the line format used. For Fixed Fee billing, the system will obtain the sales tax code based on the line format used.

The Sales Tax address is based on the address in the Client record for applying the correct sales taxes for that jurisdiction. However, you will be able to set a different Sales Tax address at the Project or directly on the Client Invoice.

Once the invoice is committed on the Avalara side; then the invoice will be locked and no longer can be unposted.

Avalara Connection In Workamajig

An account will need to be set up with Avalara before continuing with the Avalara configuration in Workamajig. This will allow all of the steps detailed below to be completed successfully.

To switch your Workamajig system from the standard tax over to Avalara Tax System, go to Admin/Manager > System Setup > Account Information > Transaction Preferences > Client Invoices and check the Enable Avalara Tax Integration checkbox.

All taxes will now be calculated using the Avalara setup. You CANNOT have a mixture of Workamajig standard taxes and Avalara taxes.

Next, go to Admin/Manager > System Setup > Connections > Avalara to enter the Avalara account information.

Enable Avalara Integration checkbox is the same as the Enable Avalara Integration checkbox as on the Transaction Preferences screen. This can be enabled or disabled from either screen.
Account ID - this field is from your Avalara account.
License Key - this field is from your Avalara account.
Company Code - this field is from your Avalara instance.

Note: The Account ID and License Key will be different between your Avalara sandbox and production environments. The Company Code may be different but can be the same between the two environments.

Turn off Document Recording option will create temporary Sales Order transactions with Avalara instead of permanent Sales Invoice transactions. This does not change anything with the invoice or associated entity in Workamajig, just how it is recorded on the Avalara side.
Turn on logging option will enable logging of calls to Avalara for troubleshooting issues with Avalara.
The Sandbox Environment option will send all transactions to the Avalara sandbox environment instead of the production environment. This generally should only be enabled in a test environment.

Setup Avalara Tax Codes

Avalara has over 2800 separate tax codes that can be linked to a variety of items in Workamajig. Enter only the applicable specific tax codes into Workamajig. A complete list of the Avalara tax codes can be found at https://taxcode.avatax.avalara.com.

In System Setup > Billing Options > Avalara Tax Code set the applicable Avalara tax codes.

Avalara Tax Code: Enter the appropriate tax code in the Avalara Tax Code field. Once entered, the code will be validated with Avalara and the description populated.

Note: The codes are case sensitive. For example, enter SW05001 and not sw05001.

Active: Set the tax code Active or Inactive.
Description: The description is populated once Avalara validates the code. The description can be overwritten, if needed.

Click Save in the upper right corner. The rows do not auto-save.

Setting the Tax Codes in System Setup

Depending on the level of billing, Avalara Tax Codes can be set on your Services, Items, Billing Items, Project Types. Only the Sales Tax Codes entered into Workamajig will be available to select when setting the Tax Code.

Service and Items

Services: To set Avalara Sales Tax Codes on your Services, go to Admin/Manager > System Setup > Billing Options > Services. Select the appropriate Avalara Sales Tax code for the Service.

Purchase Items: To set Avalara Sales Tax Codes on your Purchases, go to Admin/Manager > System Setup > Purchasing > Purchase Items. Select the appropriate Avalara Sales Tax Code for the Purchase Item.

Expense Report Items: To set Avalara Sales Tax Codes on your Expense Report Items, go to Admin/Manager > System Setup > Purchasing > Expense Items. Select the appropriate Avalara Sales Tax Code for the Expense Report Item.

Media Items - Print and Digital Items: To set Avalara Sales Tax Codes on your Print and Digital Items, go to Admin/Manager > System Setup > Media > Print and Digital. Select the appropriate Avalara Sales Tax Code for the Print and Digital Item.

Media Items - Broadcast Items: To set Avalara Sales Tax Codes on your Broadcast Items, go to Admin/Manager > System Setup > Media > Broadcast Items. Select the appropriate Avalara Sales Tax Code for the Broadcast Item.

Billing Items: To set Avalara Sales Tax Codes on your Billing Items, go to Admin/Manager > System Setup > Billing Options > Billing Items. Select the appropriate Avalara Sales Tax Code for the Billing Item.

Project Types: Setting the Avalara Sales Tax Code on the Project Type will default the Sales Tax Code on the Project.

To set Avalara Sales Tax Codes on your Project Type, go to Admin/Manager > System Setup > Global Lists > Project Types. Select the appropriate Avalara Sales Tax Code for the Project Type Item.

Setting the Tax Codes on Tasks, Projects, Campaigns and Client Records.

Sales Tax Codes can be set on your projects and campaigns, if you are not invoicing to the item level. Workamajig will apply sales tax based on the lowest level billed. See Invoicing Client below for the hierarchy of how sales taxes are applied.

Task: To set Avalara Sales Tax Codes on your Tasks, go to Project > Schedule. Open the details panel, and click on Other. Select the appropriate Avalara Sales Tax Code for Task.

Project: To set Avalara Sales Tax Codes on your Project, go to Project > Project Settings > Billing Options > Avalara Tax Code. Select the appropriate Avalara Sales Tax Code for the Project.

Campaign Segment: To set Avalara Sales Tax Codes on your Campaign Segment, go to Campaign > Projects and Segments > Click on the Segment > Avalara Tax Code. Select the appropriate Avalara Sales Tax Code for the Segment. (This will be available in a future release).

Campaign: To set Avalara Sales Tax Codes on your Campaign, go to Campaign > Campaign Settings > Avalara Tax Code. Select the appropriate Avalara Sales Tax Code for the Campaign.

Client: To set Avalara Sales Tax Codes on your Client, go to Clients > Billing > Defaults > Avalara Tax Code. Select the appropriate Avalara Sales Tax Code for the Client.

Tax Exempt Clients: If your Client has a Tax Exempt status, set the Client record to Tax Exempt and select the Tax Exempt reason. Go to Clients > Billing > Defaults > check Tax Exempt. When you enable Tax Exempt, the Tax Exempt Reasons field will display. Select the appropriate Tax Exempt Reason.

Invoicing Clients

The following section details how Avalara tax codes will be used for calculating sales tax in Workamajig. Avalara will apply the appropriate jurisdiction’s Sales Tax based on the Client address or the Project Taxable Address and the Sales Tax Code.

Taxable Address: The address used for determining taxable jurisdiction will be based on the Billing Address set on the Client record. If the Client record does not have a Billing address; then the Client’s Main address will be applied.

The Client address will be used for the taxable jurisdiction, unless the Project has a Taxable Address set. Then the Project’s Taxable Address will be used for the taxable jurisdiction.

To set a Tax Address on the project, go to Project Settings > Billing Options > Tax Address.

Level of Sales Taxes:

Avalara tax codes will be linked to a variety of Workamajig entities, and the tax code at the lowest level will be used for calculating the sales tax.

For example, an Avalara tax code can be set at the Project Level. If the client is invoiced to the Service/Item level, then the Sales Tax Code set on the item will be used. The Project Tax Code will be ignored.

However, if there is no Sales Tax code at the Item level, and the next available Sales Tax Code is on the Project, then the Sales Tax Code will apply the Project Sales Tax Code.

Time and Materials Billing

For Time and Materials billing, the system will obtain the Avalara Sales Tax and always look first to the Service/Item Level. The following levels of Sales Taxes are applied in this order from the lowest level.

Service/Item: If Sales Taxes are set at the Service/Item level then Sales Taxes are applied at this level.

However, if there are no Sales Taxes set at this level, then the Workamajig will use the Sales Tax Code at the Billing Item level.

Billing Item: If there are no Sales Taxes set at the Service or Item level, then the system will use the Sales Tax Code set at the Billing Item level.
Task: If there is no Sales Tax Code at the Billing Item level, then the system will use the Sales Tax Code set at the Task level.
Project: If there is no Sales Tax Code at the Task level, then the system will use the Sales Tax Code at the Project level.
Campaign: If there is no Sales Tax Code at the Project level, and the project is linked to a Campaign, then the system will use the Sales Tax Code at the Campaign level.
Client: If there is no Sales Tax Code at any of the lower levels, then the system will use the Sales Tax Code in the Client Record.

NOTE: If no sales tax code is found, then the invoice will display an error message that your invoice is missing a Sales Tax. A Sales tax code must be set at one of the above levels to correct the invoice and be able to save.

Time and Materials - Invoicing at the One Line Per level

Whether your Invoice is set to bill One Line Per Service and Item, Billing Item and Item, Task or One Invoice, the Time & Materials invoice will generate the invoice to the Service and Item level. Workamajig will look first at the Avalara Sales Tax code on the service and item level.

Regardless of Line Item Format selected, all Time and Material invoices will be generated to the Service/Item level.

This sample invoice was generated as One Line Item. The actual service/item transactions are used in generating the line. Sales Taxes will be applied at the lowest level available.

Fixed Fee Billing

Similar to Time and Material billing, Fixed Fee billing will apply Sales Taxes based on a hierarchy. Sales taxes will be applied at the Invoice By line level used when generating the invoice. If a Sales Tax Code is not found at that level, the system will apply a sales tax code set at the next level up.

The following levels of Sales Taxes are applied from the level being invoiced. If no Sales Tax is found at the level invoiced; then the next level up will be applied.

There are 4 options for Invoice by: One Amount, By Task, By Service/Item, or by Billing Item.

However, there are additional System Settings that allow for additional levels to those options.

Based on the combination of Invoice By options and the additional System Setting options, your Sales Taxes will be applied based on the following levels:

Service/Item: If Sales Taxes are set at the Service/Item level then Sales Taxes are applied at this level.

However, if there are no Sales Taxes set at this level, then the Workamajig will use the Sales Tax Code at the Project level.

Billing Item and Service/Item: If Sales Taxes are set at the Service/Item level then Sales Taxes are applied at this level.

However, if there are no Sales Taxes set at this level, then the Workamajig will use the Sales Tax Code at the Billing Item level.

Billing Item only: If Sales Taxes are set at the Billing Item level then Sales Taxes are applied at this level.

However, if there are no Sales Taxes set at the Billing Item level, then the system will use the Sales Tax Code set at the Project level.

Task: If Sales Taxes are set at the Task level, then Sales Taxes are applied at this level. However, if there is no Sales Tax Code at the Task level, then the system will use the Sales Tax Code set at the Project level.

Task and Service/Item: If Sales Taxes are set at the Service/Item level then Sales Taxes are applied at this level.

However, if there are no Sales Taxes set at this level, then the Workamajig will use the Sales Tax Code set at the Task level.

One Amount (Project): If a Sales Tax Code is set at the Project level then Sales Taxes are applied at this level.

However, if there is no Sales Tax Code at the Project, and the Project is linked to a Campaign; then the system will use the Sales Tax Code at the Campaign level. Otherwise, Workamajig will use the Sales Tax Code on the Client record.

Campaign: If there is a Sales Tax Code on the Campaign then Sales Taxes are applied at this level.

However, if there is no Sales Tax Code at the Campaign level, then the system will use the Sales Tax Code at the Client level.

Client: If there is no project or campaign linked to the invoice then the system will use the Sales Tax Code in the Client Record.

Note: If no sales tax code is available to apply then the invoice will generate an error. A sales tax code will be required before the invoice can be saved.

Campaign Fixed Fee Billing

Campaigns set to Bill by Campaign, Use the Campaign Budget checked is set to bill the Campaign’s approved budget as a Fixed Fee.

A Sales Tax Code can be set on the Campaign.

The Bill by Percentage of options will set the line detail of your invoice. Based on the line level generated in your invoice will determine the level that the Sales Tax will be applied.

Bill by Percentage of Estimate will generate a single line invoice. The Sales Tax will be applied from the Sales Tax Code on the Campaign.

However, if there is no Sales Tax set on the Campaign, then the Sales Tax will be set from the Sales Tax Code on the Client Record.

Bill by Percentage of Service/Item will generate an invoice based on Service and Item. The Sales Taxes will be applied from the Service/Item level.

However, if there are no Sales Tax Codes on the Service/Item, then the Sales Tax will be set from the Sales Tax Code on the Campaign.

Bill by Percentage of Billing Item and Item will generate an invoice based on Billing Item and Item. The Sales Taxes will be applied from the Service/Item level.

However, if there are no Sales Tax Codes on the Service/Item, then the Sales Tax will be set from the Billing Item.

Bill by Percentage of Project will generate an invoice with one line per project. The Sales Tax will be applied from the Sales Tax Codes on the individual projects.

However, if there is no Sales Tax Code on the project, that project line will be set from the Sales Tax Code on the Campaign.

Note: If no sales tax code is available to apply then the invoice will generate an error. A sales tax code will be required before the invoice can be saved.

Bill by Campaign Segments - To be available at a later date

Viewing the Sales Tax Applied amounts

To view the Sales Tax applied amounts, click on the Taxes amount in the Summary section of the invoice. The Avalara Tax Breakout screen will display all sales tax lines with the applicable sales tax details.

To display all lines, including those lines where no sales tax was applied, click on the Show All Items.

To display specific sales taxes applied to a specific line, click on the line details > Line Taxes Amount.

Workamajig Invoice Statuses vs. Avalara Statuses

Once a client invoice is generated in Workamajig, the invoice is passed to Avalara to obtain the applicable sales taxes. Below lists the status in Workamajig and the status the invoice shows in Avalara.

Submit/Approved/Unposted Invoice shows as Uncommitted in Avalara.
Posted Invoice shows as Committed in Avalara.
A Voided Invoice shows as Voided in Avalara.
A deleted invoice in Workamajig shows as Voided in Avalara.

NOTE: The invoice number can no longer be used in Workamajig. An error will show that the invoice number is a duplicate.

Locked Invoices in Avalara.

If Avalara is processing and paying your Sales Tax liabilities to the Sales Tax Authorities; a client invoice will be locked, once the Sales Tax has been reported in Avalara. This will also lock the invoice in Workamajig. The invoice will no longer be available to unpost and edit. If changes are required; then the invoice will need to be voided and a new invoice will need to be generated.

If Avalara is not paying your Sales Tax Liability to the Sales Tax Authorities, a client invoice will never be locked. A client invoice in Workamajig will be available to unpost and edit within Workamajig.

Editing and Updating Client Invoices - Recalculate

Advance bill invoices do not pass to Avalara.
If you change an Advance bill to a Revenue invoice, you must RecalculateTaxes.

Under the More > Recalculate Taxes. The same applies if you change a Revenue invoice to an Advance bill invoice. Recalculate Tax is required.

Recalculate Taxes option is available based on users with the right to Create/Edit invoices or the Approver can Recalculate Taxes. Administrative Users also have the ability to Recalculate Taxes.

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