Hi,
Has anyone encountered the issue below with Avalara or Vertex integration?
The U.S. has several states that calculate sales tax based on the seller’s origin. For origin-sourced sales, tax is applied where the seller is located, while for destination-sourced sales, tax is applied at the location where the buyer takes possession of the sold item.
Currently, IFS sends address information to external tax systems (Avalara or Vertex) based on the customer order details and header information. This approach works well when the customer order is created at the same site from which the inventory is shipped—for example, when an order is created at Site A and shipped from that same site.
However, issues arise when handling drop shipments within origin-based states. In such cases, IFS does not provide accurate address details to external tax systems. For instance, if Company XYZ has two sites in Illinois located in different counties, and Site A receives a customer order but lacks inventory, the user change the supply code to ‘IPD’ (Internal Purchase Direct), requesting Site B to ship goods directly to the end customer. In this scenario, Vertex calculates sales tax based on Site A’s information since IFS does not transmit any details about Site B.
Sadeepa