When working with an invoice in NetSuite, the tax amount may change after you select Save. This happens due to how tax is calculated in NetSuite and Avalara.
Environment: NetSuite
- Tax calculates automatically whenever a change is made to a transaction, such as an invoice, estimate, or credit memo.
- Selecting Save triggers tax calculation to ensure any updates affecting tax are reflected in the tax amount.
- In Edit mode, NetSuite calculates tax using a flat percentage based on the invoice subtotal. Other factors are not considered at this stage.
- When you select Save, NetSuite sends a call to the Avalara service. This recalculates tax using Avalara Nexus, item mapping, tax codes, and tax rules, ensuring accurate tax amounts.
- Nexus must be added to the company and subsidiary before creating the sales order.
- You can disable tax calculation for specific document types, such as quotes or sales orders. However, automatic tax calculation on invoices cannot be disabled without turning off all tax calculations.