Setting Up the AvaTax Connection

Connecting to Avalara

1. Go to Accounting > Configuration > AvaTax → Create.
2. Enter your Account ID and License Key from your Avalara account.
3. Set the Service URL to Sandbox while testing, then switch to Production when ready to go live — never test against Production, since Sandbox transactions don't count toward your real filing.
4. Set the Company Code matching how your company is registered in Avalara (use the "Get Company Code" action if unsure).

Testing the Connection

Use the Ping action to confirm Quickenerp can actually reach and authenticate against Avalara before relying on it for real transactions — a failed ping means check the Account ID/License Key or the Sandbox/Production URL mismatch first.

Product Tax Codes

Assign the correct Tax Code to each product or product category — this is what tells AvaTax whether an item is fully taxable, exempt, or subject to special category rules (e.g. many US states treat groceries or clothing differently from general merchandise). Getting this wrong is the most common source of incorrect calculated tax.