Learn how to activate the tax override feature to apply back calculation instead of the default forward calculation.

By default, the connector supports forward calculation for tax determination, but you can enable back calculation.

Note:

For more information on forward and back calculation, read Tax calculation types.

1. Go to Sovos Legacy > Legacy Tax > Configuration.
2. Click Edit in the Sovos Configuration's row.
3. Select Activate Override Tax Details, then click Save.

After you enable the tax override feature, two new fields are added to line items: Tax Amount and Tax Basis. Tax basis is the item's taxable amount, which is the gross amount minus the exempt amount.

Important:

These fields are required for back calculation. If you leave the fields empty, the connector will default to forward calculation.

To make sure everything is correct, click Calculate Tax and make sure the tax amount in the Summary box matches the value you entered in the Tax Amount field.