Configure Transaction-Service Pairs for Tax Calculations

When you use the Avalara Communications Tax Processor Integration integration for tax calculations, you need to associate every active product with a transaction type and service type pair (T/S pair) by configuring a product price to use a charge category with the appropriate item code.

• Transaction Type — Refers to the transmission type (interstate, intrastate, local) or service type (non-recurring, Internet, Paging, Fax, Voice, Sales, Shipping, Cellular, Cable Television, Satellite Television, VOIP, VOIPA, Payphone, Software, etc.).

• Service Type — Refers to the actual service (no tax, toll, toll free, watts, private line international toll, late charge, 900, data, etc.).

Complete the following steps to assign a T/S pair to a product:

1. Create one or more charge categories that includes an Item Code (refer to Add Charge Category). The Tax Type Code is returned by the tax processor and describes the tax returned. The tax charge category has as one of the matching fields for the Tax Type Code.

   Only Price, Usage, Additional Fee, Adjustment, and Discount charge categories have an item code associated with them. The item code of a charge category cannot be edited and a new charge category may be required if an item code is needed.

2. Configure the product price of existing and new products to use a charge category with the Item Code that contains the appropriate T/S pair for the product. Refer to Configure Product Pricing for more information.