Overview

Since July 2022 the state of Colorado started applying a Retail Delivery Fee for some transactions.

Starting on July 1st 2024 the state of Minnesota is also imposing a Retail Delivery Fee.

Please check the previous links and updated information on the Avalara Knowledge Center or with your Avalara account manager.

In order to support this, the Avatax for BusinessOne solution is adjusting the configuration to support multiple states. The behavior and calculation logic will remain the same: the approach is to add a non-inventory item in the transaction, with a specific OF400000 taxcode.

Avatax identifies this tax code and will calculate the fee if applies using that item.

Calculating Retail Delivery Fee in SAP BussinesOne

The fee is calculated by the Avatax engine. Avatax for SAP B1 sends the transaction information to Avaltax and then handles the response.

In order to have the Retail Delivery Fee calculated, you need to include a new line item in the sales document, with the provided Avatax TaxCode (OF400000), and a valid Ship-To address set for this line. If the fee applies, Avatax will calculate and return the expected fee as the calculated tax for this line. 

Define a new item in your Item Master Data, like this, and set the indicated Avatax Tax Code.

Then you can include the item on the sales document, and get the tax calculated including the fee, like in this example with a ship-to Colorado.