Avalara charges based on the number of “chargeable transactions”. These are made up for the following:

  • Address Look-Ups. Each address look-up is considered a chargeable transaction.
  • The larger of these three numbers:
    1. The number of invoices marked sale + invoices voided + edits after the order is a sale.
    2. The number of times tax is recomputed on an order divided by 10.Without any other edits, Control will normally result in 5-7 sales tax computations as the order moves from Estimate through WIP, Built, and Sale.
    3. The number of line items on an order divided by 30.

The following items can increase your Avalara bill.

  • Large scale address validation, such as might be manually run after an import.
  • Progress Billing. Each time the progress changes, the percentage complete must be submitted and is effectively treated as an invoice marked sale.
  • Edits after sale. Each edit may result in a tax calculation that is treated as a chargeable transaction.
  • A large number of edits in WIP and Built.
  • A large number of shipments. Each shipment line item is counted towards the 30 line items per charged transaction from #3.

The following items can decrease your Avalara bill.

  • You can set the option to not automatically calculate taxes for Estimates, WIP, or Built. This is useful if you are frequently entering incomplete orders that will have to be edited before they are valid anyway.
  • Avoid progress billing if simpler solutions are available.
  • Minimize or group edits to orders, especially after the order is a sale.
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