How Avalara AvaTax connects to SAP Business ByDesign
Prebuilt point-to-point connector (SAP Store listing)
The connector is delivered as a listed partner solution rather than custom middleware. At document time ByDesign passes ship-from, ship-to, item and amount data to AvaTax and receives tax amounts back for the document. Confirm the exact supported document types and any edition limits with Avalara before scoping.
Company and item configuration in both systems
On the Avalara side you maintain the company, nexus and tax codes. On the ByDesign side, items and customers need the attributes the connector reads, such as tax code mapping and exemption status. This part is configuration, not code.
What data moves
| From | To | Data | When |
|---|---|---|---|
| ByDesign sales order or invoice | AvaTax | Addresses, items, quantities, amounts, customer exemption | Document is saved or released |
| AvaTax | ByDesign | Tax amount and jurisdiction detail per line | Response to the calculation request |
| ByDesign customer master | Avalara | Exemption certificate status or entity use code | Customer created or changed |
| ByDesign posted invoice | Avalara | Committed transaction for returns reporting | Invoice posting, if commit is enabled in your setup |
Setting it up
- 1Confirm scopeCheck that your ByDesign scoping and country setup include the sales tax scenario the connector supports, and which Avalara plan you hold.
- 2Install the solutionActivate the Avalara solution from SAP Store through your ByDesign tenant or partner, following the vendor guide.
- 3Create the Avalara companySet company code, ship-from locations and nexus jurisdictions to match your legal entities.
- 4Map items to tax codesAssign Avalara tax codes to product categories so taxable and exempt goods are classified correctly.
- 5Load exemptionsMark exempt customers and upload certificates in Avalara, then set the matching flag on the ByDesign customer.
- 6Test with real addressesRun orders to several states, including a tax-free state, a home-rule jurisdiction and an exempt customer, and compare to manual tax.
- 7Reconcile the first periodCompare ByDesign tax revenue accounts to the Avalara transaction report before the first return is filed.
What usually breaks
- !Items without a tax code default to taxable, so exempt goods such as certain materials or resale items are over-taxed until mapped.
- !Ship-from address on the document differs from the Avalara location, which shifts origin-based jurisdictions.
- !Customer exemption flags set in ByDesign but no matching certificate in Avalara, so audit support is missing.
- !Credit memos and partial returns not committed the same way as the invoice, leaving the Avalara return and the ledger out of step.
- !Address validation failures on rural or new addresses silently fall back to a zip-level rate.
- !Manual tax overrides on a document that the next recalculation overwrites.
A private AI layer across both systems
Tax variance triage
A private assistant compares ByDesign invoice tax with Avalara results and lists documents where they disagree, with the likely cause such as a missing tax code or address.
Plain-language tax questions
Finance asks why a specific invoice was taxed at a given rate and gets the line, jurisdiction and exemption state from both systems with the query shown.
Exemption gap review
Find customers flagged exempt in ByDesign without a certificate on file, and draft a request list for a person to approve and send.
When something else fits better
- Vertex Cloud for ByDesign if you are US and Canada only and prefer an embedded service.
- ByDesign native tax determination if you sell in few jurisdictions and rates rarely change.
- A partner-built integration such as Navigator iConnect if you need return filing automation around Avalara.
Frequently asked questions
Does this need middleware?
The listing describes a prebuilt point-to-point connector, so no separate middleware is described. You still configure Avalara and map items and customers. Check the current SAP Store listing for supported scenarios in your tenant.
Does AvaTax file returns for me?
AvaTax calculates and records tax. Return filing is a separate Avalara service or a partner-built flow. Confirm which you are buying, because calculation alone leaves filing as a manual job.
Can I run AI over tax and invoice data privately?
Yes. A read-only assistant can compare ledger tax with the Avalara transaction export on infrastructure you control. Anything that changes a document or certificate needs a person to approve.
Pairing documented at www.sap.com/israel/products/erp/partners/avalara-inc-avalara-avatax-for-sap-busi . Avalara AvaTax is a product of Avalara; Netray is independent and not affiliated with either vendor.