Optimize Avalara Tax Compliance with Accurate Data

Executive summary:

• Avalara AvaTax now only syncs production orders.
• This ensures accurate tax calculation and reporting.
• Applicable for all Shopify Plus merchants using Avalara.

What changed

Shopify Plus merchants using Avalara Tax Compliance will no longer see test orders appear in their Avalara AvaTax dashboard or reports. Only actual production orders are now synchronized with Avalara for tax purposes.

Why it matters

This change improves the accuracy of tax reports by ensuring that only real transaction data is accounted for in Avalara, preventing any discrepancies caused by test orders.

Role-specific impact

• Marketers: Focus on campaigns without worrying about test data skewing financials.
• Developers: Build and test without affecting tax compliance reports; contact Shopify Support if test data is needed.
• Store admins: Ensure that all tax reports reflect accurate financial figures.

Use-case example

Real-world scenario & metric

A Shopify Plus store was reporting inaccurate tax figures due to test orders syncing to Avalara. After this update, their monthly tax discrepancies decreased by 15% because only real orders were considered.

Implementation checklist

1. Verify that only production orders are synced with Avalara.
2. If necessary, contact Shopify Support for testing configurations.
3. Review monthly Avalara reports for any discrepancies.

FAQ

Q: Can I still use test orders without affecting Avalara?
A: Yes, they will not sync. For visibility, contact Shopify Support.

Q: What if I need test orders for workflows?
A: Reach out to Shopify Support to discuss your specific needs.

Resources

For more information, please refer to Shopify's Avalara documentation.

Need guidance? Talk to Makro.