Sales Tax Processing within Sage Intacct #MakeYourForemanHappy

Sales Tax affects all businesses including Construction companies.  Each state has different sales tax rules for each industry, and it is important that Sage Intacct is set up correctly to help you calculate and track your sales tax amounts for each transaction. ETHOsystems has put together a video for our client HERE>>.  However, here are some of the top Tips and Tricks for Sage Intacct.


Setting up Sales Tax

Sage Intacct offers three ways to process sales tax calculations:

Method How Does it Work?
Simple Tax You manually calculate and enter a tax amount in the subtotals section for invoices in Accounts Receivable. You can automatically or manually apply a flat tax (an amount or percentage) for transactions in Order Entry and Purchasing.


Advanced Tax You set up and maintain the tax jurisdictions and tax rates in Intacct using tax groups, tax details, tax schedules, and tax schedule maps. Taxes are automatically determined in the applicable transactions.


Avalara AvaTax When you use the AvaTax integration from Avalara, Avalara is responsible for managing and maintaining all the tax rate tables for the various jurisdictions. Taxes are automatically determined in the applicable transactions by Avalara, who calculates the taxes on their system.



Remember that Simple Tax and Advanced Tax are included in your Sage Intacct Subscription.  Avalara is built within Sage Intacct but there are fees for using Avalara within Sage Intacct.  For Construction companies, we recommend using Advanced Tax.

Advanced Tax

When setting up Advanced Sales Tax, it is important to follow the process flow below.


To set this up follow these steps:

  • Create “Contact Tax Groups” which you associate with each Customer. These Contact Tax Groups are set up in the Company Module under Settings.
  • You also set up “Item Tax Groups” and associated these with each Item. Many times, we set up Tax Groups as “Taxable” or “Non-Taxable” based on the type of item.
  • Set up the Tax Detail Information. This is where you set up the different rates.  Remember that you are responsible for maintaining the rates unless you are using Avalara.

  • Put the Tax Detail Information in a schedule. This allows you to combine the State, County, City, etc. together for the complete sales tax rate you need to charge.

  • Put your “Tax Schedule Map” together where you combine the Contact Tax Group, the Item Tax Group, and the Sales Tax Schedule together.

When setting this up in Sage Intacct, make sure you fully test the sales tax as part of your implementation process!

If you have any questions about setting up Sales Tax within Sage Intacct, please contact us here at ETHOSystems!

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