Dynamics CRM for Multi-Jurisdictional Sales Tax Management in Quote and Invoice Processes

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At NexusTek, we LOVE working on XRM projects.  What is an XRM project you ask?  It’s taking the extensibility tools that are built into the Dynamics CRM platform and using them to provide highly tailored solutions to meet the unique business requirements of our clients.  We get a big kick out providing tailored solutions at an affordable cost.  For example, we recently had the opportunity to provide comprehensive multi-jurisdictional sales tax management within the Dynamics CRM quote and invoicing processes.

Our client Innovyze is a leading provider of software and services for envisioning, designing, building, operating, maintaining, and securing water infrastructure.  Think of all of the unseen water pipes that connect a city together that we take for granted every day.  They came to us over 10 years ago as a young company with a requirement for automating and managing customer quotes and invoices.  After careful evaluation of their specific requirements, we recommended and then implemented Dynamics CRM to meet their unique needs.

Fast forward several years to a rapidly growing company selling software and services in hundreds of tax jurisdictions across the US (as well as internationally).  They needed a way to accurately calculate, capture, and report sales taxes without slowing down their high volume quoting and invoicing processes.  They needed this system to be seamlessly integrated with their Dynamics CRM quote and invoice processes for customer address validation, quoting, invoicing, and compliance.  We assisted them in selecting AvaTax, a web services based sales tax management system, to meet these requirements.

We designed, created, and implemented a solution that utilizes the cloud services of AvaTax to provide full sales tax functionality within Dynamics CRM.  Each time a customer address is entered, the address is immediately bounced off of the US Postal Service database which returns a normalized address which in turn updates the CRM address record (you can’t calculate accurate taxes if you don’t have an accurate address).  For quotes, each time a line item is created or updated the relevant information (address, tax code, and amount) are similarly sent to the AvaTax service which instantly calculates the appropriate taxes at the appropriate rates for the appropriate jurisdictions, and returns the tax amount to update the quote in Dynamics CRM.  When Invoices are finalized, details are automatically posted to AvaTax which then handles the aggregation and reporting to the individual taxing jurisdictions.

This solution has enabled Innovyze to nearly eliminate time spent calculating, capturing, and reporting sales tax details as they sell their software in hundreds of tax jurisdictions across the US.  Their salespeople can focus on providing accurate quotes to their customers without spending any time researching or calculating appropriate sales taxes.  Their administrators can quickly and confidently file accurate returns for the appropriate jurisdictions no tabulation or having to maintain knowledge of the ever changing tax codes.  The solution allows them to focus instead on providing their customers the best software tools for managing water infrastructure which in turn allows them to continue to grow their company.

If your organization could benefit from the power of Microsoft Dynamics CRM to seamlessly manage sales tax details in quoting and invoicing processes, or to address any other business objectives you might have, please contact NexusTek at 303.773.6464 or sales [at] nexustek [dot] com.

By: Randy Bristol, Director NexusTek Dynamics Solutions

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