Account TaxCloud

Account TaxCloud

Description

This App connects Odoo with TaxCloud, enabling automatic computation of sales tax on invoices within the Odoo platform. It is compatible with multi-companies environments.

This App is replacing the App that was previously supported by Odoo.  See this link for an explanation. 

Odoo released the code to TaxCloud and Sodexis is maintaining it. Bug fixing and new features will only be added to this module going forward.  If you are already using the Odoo App and want to benefit from those bug fixing and new features, you can transition to this App, see the instructions below. Please make sure you test this transition before doing it in production.

If you are not currently using the Odoo connector, you can install this app as any other module.

For previous versions of Odoo (<V17) you will need to first migrate to V17 and then transition to this new App.  If you need any help with the migration, contact Sodexis at info@sodexis.com, we have a full team of business analysts and developers that can help you.

If you have any questions about sales taxes, please feel free to reach out to the TaxCloud team here. If you're interested in learning how TaxCloud can automate your Odoo sales tax collection, find more information at https://taxcloud.com/integrations/odoo/ .

About TaxCloud

TaxCloud ( https://taxcloud.com/) is a sales tax compliance solution with over 15 years of experience in tax technology. Trusted by more than 4,000 companies, TaxCloud streamlines the management of sales taxes from collection and calculation to filing. It supports e-commerce businesses in navigating the complex U.S. tax regulations across all 50 states and over 13,000 jurisdictions. With TaxCloud, businesses can accurately calculate taxes, reduce the hassle of keeping up with changing tax laws, and ensure effortless compliance. Say goodbye to the stress and frustration of sales tax with TaxCloud.

Module Installation:

• Download all the TaxCloud Official Apps listed below from the Odoo Apps Store before proceeding with the installation process, even if you don’t use the related odoo TaxCloud module. This ensures you get all the TaxCloud features and proper data transmission. If you are using “Deploy on Odoo.sh” in the Apps Store, deploy all the modules listed below.

• Account TaxCloud - Sale
• Account Taxcloud - Sale (loyalty)
• Account Taxcloud - Sale (loyalty) - Delivery
• Account TaxCloud - Ecommerce
• TaxCloud and Subscriptions
• Amazon/TaxCloud Bridge

• For example, you might not have the Subscription module installed but the Sales module is installed, we still recommend downloading all the TaxCloud official modules before installing the “Account TaxCloud” module. This will install the “Account TaxCloud - Sale” modules based on the installed module list. But in the future, installing the Subscription module will automatically install the needed “TaxCloud and Subscription” module. This ensures you do not miss any of the TaxCloud features.

• If you are not using the Odoo App, you can install this App by clicking on the “Activate” button and then proceed with the configuration, see below.

• If you are using the Odoo TaxCloud App, do not uninstall it before installing this App otherwise you will lose all your data. Install our App by clicking on the “Activate” button. Our module will take care of the transition of configuration and data from the existing App and uninstall the Odoo TaxCloud App. Do not reinstall the Odoo TaxCloud App once you have switched to this new one.

For any technical queries or  support contact us at 📧taxcloud@sodexis.com or visit our website at 🌐 sodexis.com/taxcloud.  We will provide free support for the installation to the first few customers, so contact us if you want help.

Configuration

Go to Accounting - - > Configuration - - > Settings - - > Taxcloud TC.

API credentials from the TaxCloud site are entered into the fields under the TaxCloud TC section. These steps are required to integrate Odoo with Taxcloud.

The credentials include API ID, API Key and the Default Category.

1. The Refresh button under the bottom of the Default Category is used to import the TIC (Taxability Information Codes) product categories from TaxCloud.
2. The Default Category is applied when no TaxCloud Category is set on your products or product categories.
3. When the boolean “Skip Zero Invoice” is enabled, the invoice line with “0” price is not sent to Taxcloud. Because, even if it is sent to TaxCloud the computing tax is going to be zero.
4. When the boolean “Allow Cancel Invoice” is enabled, users will be able to cancel invoices.

To be Notified About Updates

The button “Get Notified about Updates” allows the users to be notified about the major updates and bug fixes.

Clicking the button opens the Compose Email wizard. From the wizard, users can compose and send a confirmation email to receive notifications from the team regarding major updates and bug fixes.

The “Default Tax Template” boolean is found under the Default Category field. When the “Default Tax Template” boolean is enabled, a new field “Tax Template” appears.

Once the Default Tax is set, any tax created through the API will use this template to generate new taxes. However, fields such as Tax Name, Amount, and Label on Invoices are left to override.

Discover more about keeping your business compliant with sales tax regulations:

• Explore TaxCloud Taxability Information Codes (TICs) for detailed product tax classifications: https://app.taxcloud.com/tic
• Access TaxCloud comprehensive resources including a tax rate threshold map, tax rate lookup tool, and state-specific sales tax guides: State Guides

Rounding Method

Go to Accounting - - > Configuration - - > Settings - - > Taxes.

Use the “Round Globally” as the Rounding method to round the tax values.

Set Taxcloud Categories on Product:

Go to Accounting - - > Configuration - - > Management  - - > TaxCloud Categories.

If we set a TaxCloud Category on a product and another on its Product Category, Odoo only considers the TaxCloud Category found on the product itself.

If the TaxCloud Category is not set on a product, then Odoo considers the Taxcloud category set on its Product Category.

If both the TaxCloud Category on a product and its Product Category is not set, the Odoo considers the Default Category set under Accounting Settings.

A TaxCloud Category set on a parent product category does not apply to its child product categories. For example, if we set the TaxCloud Category on the All Product Category, it is not applied to the All/Sales Product Category.

Set the TaxCloud category for the Shipping Products and Down Payment Products to get the correct tax computed.

Upon installing our module, the Fiscal Position is set as 'Automatic Tax Mapping (TaxCloud)' with the 'Use TaxCloud API' enabled.

When you create a sale order and invoice with the TaxCloud Fiscal Position, taxes will be calculated from the delivery address.

If you do not set the Fiscal Position as 'Automatic Tax Mapping (TaxCloud)', taxes will not be calculated from the TaxCloud.

To automatically set the Fiscal Position, you can use the Odoo base 'Detect Automatically' option in the Fiscal Position.When 'Detect Automatically' is enabled, you have options such as “Country Group, Zip Range, and Federal States”, which can be configured based on your requirements.

Here, we have used the “Country” as "United States". If the delivery address is selected in the selected in the sale order/invoice is in the United States, then the 'Automatic Tax Mapping (TaxCloud)' Fiscal Position will be applied automatically.

Functionality

Go to Accounting - - > Customers -  - > Invoices. Create a new Invoice.

Under the Other Info tab, set “Automatic Tax Mapping (TaxCloud)” in the Fiscal position field. The taxes are computed based on the “Fiscal Position” which was configured initially.

Note: We cannot compute taxes before the Invoice is posted.

Confirm the Invoice to get it posted. We could see that the computed tax from the Taxcloud is applied in the Invoice as shown below.

Taxcloud uses the Destination from the "Delivery Address" and the Customer from the "Customer ID" on the invoice.

Go to Transactions - - > Reports which shows the recent transactions in Odoo.

We could see that the status of the Invoice on the Taxcloud website will be “Captured” when the Invoice is posted in Odoo.

Taxes are computed based on the “Fiscal Position” configured initially which is added under the Other Info tab of the Invoice.

Canceling the Invoice

A new invoice cancellation process has been implemented based on the boolean “Allow Cancel Invoice” in Accounting settings.

When enabled, the standard "Reset to Draft" button will be hidden for invoices with fiscal positions linked to TaxCloud. Instead, a new "Cancel" button is introduced. Clicking this button triggers a cancellation request via TaxCloud's Return API.

If the API call fails, a pop-up will notify the user of the failure and suggest manually creating a credit note. If successful, the invoice will be reset to draft and the TaxCloud transaction will be cancelled simultaneously.

When reconfirming the invoice, a new TaxCloud transaction is created with a suffix pattern (e.g., 766-1, 766-2) appended to the original transaction ID.

If the invoice is cancelled again, the system ensures that the transaction ID is managed correctly by incrementing the suffix.

Additionally, when a credit note is created from an invoice with a transaction ID like 766-2, the same ID will be used to create the corresponding Return on TaxCloud.

Note: This integration only supports cancellation of invoices, not credit notes, since TaxCloud does not allow changes to a transaction once a Return has been processed.

Also, if the tax for that period has already been filed, the process remains valid as long as a proper return date is provided and the return is correctly submitted, ensuring accurate reporting in TaxCloud.

Credit Note:

To reverse the Invoice, we need to create a credit note using the “Credit Note” button on the invoice. When a credit note is created for the posted invoice, TaxCloud updates the tax and the total as “0” on the original record with the status as “Returned” as shown below.

 

Note: This release resolves an issue where users could incorrectly create credit notes under the TaxCloud fiscal position without referencing an existing invoice. These credit notes were not reported to TaxCloud, leading to inaccuracies.

Going forward, credit notes with the TaxCloud fiscal position can only be created as reversals of existing invoices, ensuring that all credit notes are accurately tracked and reported to TaxCloud.

If a user attempts to post a credit note not linked to an original invoice, the system will now throw an invalid operation error as shown in the screenshot below.

Frequently Asked Questions:

Which version is the app available for, and where can I find it?  

• The app is available for versions V17 and V18. You can find it in the Odoo App Store.

Is there a specific installation procedure for integrating TaxCloud with Odoo 17 and V18?

• The steps are detailed and explained in the Account TaxCloud Documentation under the Module Installation section.

 What Odoo edition is the TaxCloud module compatible with?

• Customers who are self-hosted or hosted on Odoo.sh can install the modules.
• However, it is not compatible with Odoo Online (SaaS) — because Odoo Online does not allow the installation of third-party modules, including the TaxCloud connector
• Customers on Odoo Online hosting who are currently on a “minor” version, such as v18.1, would need to downgrade to a stable version like v18.0 and then switch to Odoo.sh hosting before they can install the Sodexis TaxCloud connector (or any other third-party module).

What can I do if I need support and assistance with installing and using the module?

• For help with the TaxCloud module, you can purchase an onboarding package directly from TaxCloud, which includes support from their team. Alternatively, you can purchase a Sodexis Success Pack through this link, which provides additional resources and personalized assistance from our team for installation, setup, and ongoing functionality.

Does it support Multi-Website and Multi-Company?

• Yes, the module supports Multi-Website and Multi-Company configurations. API credentials in the settings are company-specific, and each website uses the credentials based on the company on it.

Can I cancel an invoice after it’s sent to TaxCloud?

• Yes, you can cancel the invoice after it’s sent to TaxCloud. If you want to allow invoice cancellation, enable the boolean “Allow Cancel Invoice” option in the Accounting Settings. To enable this feature, make sure you have installed the latest version of the account_taxcloud_tc module which is available from version 17.0.4.0.1.
• This allows canceling invoices only; credit notes are not supported for cancellation with this option.
  

I process Standalone Credit Notes, will that work with TaxCloud?

• Standalone credit notes in Odoo are not yet integrated with TaxCloud. If this is something you need, please contact us—we’d be happy to explore building a custom connector tailored to your requirements.

On which address is the calculation of tax based?

• It is based on the Delivery Address with the correct Zip code, state, and country.

How do I manage the taxability of shipping charges?

• You need to set up the TaxCloud category on the shipping product.

Will an invoice line or sales order line with a zero amount be sent to TaxCloud?

• Yes, it is sent to TaxCloud. If you don’t want to send those, enable the boolean “Skip Zero Invoices” or “Skip Zero Orders” option in the Accounting Settings.

Does TaxCloud compute tax for Amazon orders?

• Yes. However, if you don’t want to compute tax for sales orders created from Amazon, enable the “Don’t Compute Tax for Amazon Orders” option in Accounting Settings.

Can I use TaxCloud with my POS?

• Currently, TaxCloud is not integrated with Odoo POS. We're collaborating with TaxCloud to enable this functionality. For the latest updates, feel free to reach out to us.

How do you set up accounts for the taxes created via API?

• A default Tax can be set in the “Default Tax Template” field on the Settings. Once configured, any tax created through the API will use this template. However, fields such as Tax Name, Amount, and Label on Invoices are left to override.

Why does the “Update Taxes” button not show up in the sales order?

• If all the apps are installed properly, check whether the “Use TaxCloud API” boolean is enabled in the fiscal position set on the Sales Order.

How do I set the Fiscal Position automatically?

• Enable the “Detect Automatically” boolean in the Fiscal Position.

Can we configure a customer for tax exemption during the sales order creation process in the TaxCloud Odoo?

• No, tax exemption cannot be configured directly in the sales order. A separate Exemption menu is available in both the Sales and Accounting modules, where you can manage customer tax exemptions.

Why does the create button for Exemption not show up?

• Ensure the “Manage TaxCloud Exemption” user group is enabled for the relevant users.

Will TaxCloud still compute tax for the Exemption applied invoice/order line?

• Yes, for some specific TIC codes.

Is the TaxCloud system and connector capable of handling partial sales tax calculations?

• Yes, using the exemption module, a valid exemption certificate that includes a specific exemption reason will ensure the correct tax rate is applied.

 Why is the tax not computed for all states?

• To enable tax collection for states, please make sure those states are enabled to collect the taxes in the TaxCloud account.

Do I need to configure the threshold manually?

• The threshold is available in the TaxCloud account; there is no configuration for it in Odoo. The threshold will be set automatically.

Does the creation of a sales order also generate a transition in the TaxCloud account, or can we limit it to only those related to the actual invoice?

• Yes, this transaction is necessary to maintain consistent tax between the invoice and SO.

Why do some of the transactions in TaxCloud show no cart ID? How can we check which order this transaction was created in?

• This was resolved. Please make sure you are using the latest version of the app.

How does the transition status get updated?

• The status will be updated as “lookup” for the quotation, “captured” for the invoice, and returned for a credit note. For the confirmed invoice, the transaction is authorized and then captured, so we don’t see the transaction in the authorized state.

What are the current limitations of the TaxCloud-Odoo Connector?

• Inability to cancel an Invoice or Credit Note after it has been submitted to TaxCloud.
• Compatibility issues with the Point of Sale (POS) system.
• An "Update Tax" feature on Invoices/Credit Notes to verify the tax amount prior to submission to TaxCloud.
• Odoo sometimes applies discounts using negative line items, which the TaxCloud API does not support at this time.
• The TaxCloud API provides the total amount rather than the tax rate, requiring Odoo to generate the tax rate, which may lead to rounding discrepancies.

I previously used a different tax calculation software, and now I need to process a refund/return for an order that wasn’t handled through TaxCloud. I'm getting errors—did I do something wrong?

• No. TaxCloud now restricts the creation of credit notes with the TaxCloud fiscal position to only those generated from existing invoices. This ensures that all records using the TaxCloud fiscal position are properly reported to TaxCloud.
• We're also rolling out a new release that addresses a bug that previously allowed users to create standalone credit notes with the TaxCloud fiscal position. However, those credit notes weren’t being transmitted to TaxCloud, since TaxCloud only accepts credit notes as reversals of existing, reported invoices.
• To get this update, please download and install the latest version of the TaxCloud connector.
  

What do I do if I have more questions?

• Email taxcloud@sodexis.com for any additional questions or issues.

What do I do if the instructions included in these FAQs do not work?

• Check to make sure you're using the most recent version of the TaxCloud connector. If necessary, update the module and try again.

Document Version: 2.4

Credits

Contributors

For additional information or inquiries regarding TaxCloud, feel free to reach out to us at

Sodexis <📧taxcloud@sodexis.com> or visit our website at <🌐 sodexis.com/odoo-taxcloud-integration>