To meet the growing needs of multi-channel merchants with advanced order-to-cash processes, we’ve upgraded our API usage model from a call-based model to an order-based model. One order now equals 10 sales tax calculations. 1,000 orders per month equals 10,000 sales tax calculations per month. Previously it was a 1:1 ratio. If you’re using an accounting or ERP system like NetSuite, this means you’ll be able to make more sales tax calculations across the entire order-to-cash lifecycle.
We believe that moving to an order-based model and introducing a usage ratio of 10 API calculations per order is fair and predictable. It can also save you money.
Here’s an example: You’re creating a new sales order for a customer over the phone – since you have nexus in the state where the customer resides, you’ll have to collect sales tax. You preview the order total (including sales tax) and share it with the customer. That’s one API call.
Next you’ll need to fulfill the sales order from your warehouse and create an item shipment. From there, you’ll create an invoice or cash sale to record the amount owed by the customer. However, ERP systems like NetSuite do not copy sales tax from one transaction to the next – which means tax will be recalculated again for the invoice:
If you process a merchandise return later, you’ll have to recalculate tax for subsequent credit memos or cash refunds:
From start to finish, the number of sales tax calculations for a single transaction in an order-to-cash process can add up quickly. Thanks to our new order-based API usage model, all of those API calls (up to 10) will count as 1 order.
At TaxJar we extensively research how each ERP system and eCommerce platform natively handles sales tax calculations. We understand these behaviors in-depth and conserve API calls when possible to save you money. Our official and certified integrations only calculate sales tax where you actually have economic nexus.
If you have an eCommerce shopping cart connected to an ERP system, we go one step further. Our NetSuite integration allows you to bring in the tax collected “as-is” from your shopping cart. When you import an eCommerce order with tax into your ERP system, we’ll use the original tax and not recalculate tax again. Fewer sales tax calculations = more savings for you.
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