Account TaxCloud

Account TaxCloud

Description

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

This module is replacing the module 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 users are already using the Odoo module and want to benefit from those bug fixes and new features, they can transition to this module; see the instructions below. They must make sure to test this transition before doing it in production.

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

For previous versions of Odoo (<V17), they should migrate to V17 before transitioning to this new module. If they need any help with the migration, they can contact Sodexis at info@sodexis.com, and a full team of business analysts and developers will be available to help them.

If they have any questions about sales taxes, they can feel free to reach out to the TaxCloud team here. If they're interested in learning how TaxCloud can automate their Odoo sales tax collection, they can 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 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

• Users must download all the official TaxCloud modules listed below from the Odoo Apps Store before proceeding with the installation process, even if they don’t use the related Odoo TaxCloud modules. This ensures they get all the TaxCloud features and proper data transmission. If they use “Deploy on Odoo.sh” in the Apps Store, they must 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, suppose users have not installed the Subscription app but have installed the Sales app. In that case, they are still recommended to download all the official TaxCloud modules before installing the “Account TaxCloud” module. The “Account TaxCloud - Sale” modules are installed based on the installed modules list. In the future, installing the Subscription app will automatically install the needed “TaxCloud and Subscription” module. This ensures they do not miss any of the TaxCloud features.

• Users did not use the Odoo TaxCloud Modules:

• If users are not currently using the Odoo module, they can install this module by simply clicking the “Activate” button and following the configuration steps below.

• Using Odoo TaxCloud Modules:

• Switching from the Odoo TaxCloud module to our connector in odoo V17
• If users are currently using the Odoo TaxCloud module, then they should not uninstall the current module before installing this module; otherwise, they will lose all of their data. This module will take care of the configuration & data  transmission from the existing module and automatic uninstallation of the Odoo TaxCloud module once installed. It is not necessary to reinstall the Odoo TaxCloud module.

• Migrating from Odoo 17 to Odoo 18 or from Earlier Versions to Odoo 18

• Migrating from Odoo 17 to Odoo 18
• First, switch to the official connector in Odoo 17 to prevent data loss. Then, proceed with the migration to Odoo 18 using our connector.
• Migrating from earlier versions to Odoo 18
• First, migrate to Odoo V17 using our official connector. Then migrate to Odoo 18 to ensure all data is retained.
• Alternatively, the module can be installed directly in Odoo 18 as a fresh installation and configured from scratch.

• TaxCloud Migration _tc modules (V17 to V18):

• Steps after Migration:
• Source code:
• Please download the V18 version of the TaxCloud apps and use them.
• DB Fixes:
• In V18, activate the inactive TaxCloud views.
• Enable Developer Mode
• In the "Technical" section (which appears only in developer mode), find and click on "User Interface" -> "Views.
• In the search bar at the top of the "Views" list, type "taxcloud," and in the filter, apply for the inactive.
• Activate those views.

• In Accounting/Settings, set the TaxCloud API credentials and the Default Category.

• Enable the “Use TaxCloud API” boolean in the Fiscal position, same as in V17.

For any technical queries or support, contact us at 📧taxcloud@sodexis.com or visit the website at 🌐sodexis.com/taxcloud. Free support for the installation to the first few customers will be provided.

Configuration

Navigate to the Accounting app and under the Configuration menu, select the Settings option. In the Settings view, locate the TaxCloud TC boolean and enable it.

Enter the API (Application Programming Interface) credentials derived from the TaxCloud site into the fields under the TaxCloud TC section. These steps are required to integrate Odoo with TaxCloud.

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

1. The refresh button under 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 both the products and product categories.
3. When the boolean “Skip Zero Invoice” is enabled, the invoice line with a “0” price is not sent to TaxCloud. Because, even if it is sent to TaxCloud, the computing tax is going to be zero.

To be Notified About Updates

The button “Get Notified about Updates” allows users to be notified about 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's comprehensive resources, including a tax rate threshold map, tax rate lookup tool, and state-specific sales tax guides: State Guides

Rounding Method

Navigate to the Accounting app and select Settings under the Configuration menu. In the Settings view, locate the Taxes section and under the Taxes, set the Rounding Method to Round Globally to round the tax values.

Setting TaxCloud Categories on Products

To view the list of TaxCloud Categories, ensure that the developer mode is activated. Navigate to the Accounting app and under the Configuration menu locate Management to select TaxCloud Categories.

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

The TaxCloud Category set on a parent product category does not apply to its child product categories and vice versa. For example, if the TaxCloud Category is set to the “All” Product Category, then it is not applied to the “All/Sales” Product Category, and vice versa.

Set the TaxCloud category for the Shipping Products and Down Payment Products to get the right tax computation.

In the Accounting app, navigate to the Configuration menu to locate the Accounting section and select the Fiscal Positions option. Ensure the 'Use TaxCloud API' boolean is enabled.

To automatically set the Fiscal Position, enable the 'Detect Automatically' boolean in the Fiscal Position. When 'Detect Automatically' is enabled, the options such as VAT required, Country Group, Federal States, and Zip Range can be configured based on the requirements.

Here, set the “Country” field as "United States". If the delivery address in the sales order/invoice is the United States, then the Fiscal Position (Automatic Tax Mapping (TaxCloud)) will be applied automatically.

Functionality

Navigate to the Accounting app and select Invoices nested under the Customers  menu . 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.

Confirm the invoice to get it posted. It can be seen that the computed tax from TaxCloud is applied in the invoice, as shown below.

Note: The taxes cannot be computed before the invoice is posted.

TaxCloud uses the destination from the "Delivery Address" and the customer from the "Customer ID" on the invoice.

Log in to the TaxCloud website, locate the Transactions menu, and select the Reports option, which shows the recent transactions in Odoo.

The status of the invoice on the TaxCloud website is seen as “Captured” when the invoice is posted in Odoo.

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., 2741-1, 2741-2) 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 2741-2, 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, 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.
  

What is the standard timeline to go live with the TaxCloud connector after onboarding begins?

• Once we receive all the required information, including your TaxCloud credentials and answers to the initial onboarding questionnaire, our team typically completes the setup and testing within 5 business days. This includes:
  

• Install our TaxCloud Connectors in the Staging
• Configuration to Integrate TaxCloud with Staging
• Testing the flow and transaction in TaxCloud
• Assistance with moving the configuration to production

• Once you approve the go-live after completing the above testing in your staging environment, we can move to production within 3 business days.

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.

Why does the tax rate percentage sometimes appear incorrect?

• Regarding the tax rate rounding issues, please note that the tax amount is correct and matches what's calculated by TaxCloud. However, the tax rate % displayed may not be accurate due to rounding, which can cause confusion.
• If this is a concern, we recommend not displaying the tax rate percentage to the customer and instead showing only the total tax amount.
• We are aligned on a long-term solution to address this issue when we port the integration to TaxCloud APIv3 in the future.

Can I Cancel or Reset to Draft an Invoice?

• This feature is on our future improvements list and will be implemented based on sponsorship.

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.
• 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.

If I set an exemption for the parent contact, will it apply to child contacts?

• Yes, when an exemption is set for the parent contact, it automatically applies to all its child contacts whose delivery state matches the exemption state.
• However, if an exemption is set for a child contact, it applies only to that contact and does not extend to its parent or child contacts.

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: 2.0

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/taxcloud>

This module is maintained by Sodexis.