Handling Incorrect Tax Rates, Tax Codes, or Tax Items in NetSuite Orders
For each order, NetSuite calculates the tax code and applies the tax rate based on the shipping address. On the other hand, NetSuite Connector, overwrites the NetSuite tax rate with the rate used in the marketplace/cart. This process ensures that the tax total in NetSuite matches the tax total in the marketplace or cart. NetSuite Connector uses this method because NetSuite does not allow any manual changes to the Tax field.
Incorrect Tax Rates
Incorrect tax rates on the order cause discrepancies between the tax total on the order and in the marketplace/cart. By default, NetSuite Connector only sends the tax rate from the marketplace/cart when it creates the order. If the rates do not match, you must check the following areas in NetSuite.
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Verify if your customers are set to taxable by default (applicable only for US customers). If NetSuite assigns a non-taxable customer to an order, then the order becomes non-taxable because there is no tax rate for NetSuite Connector to overwrite.
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Verify if your items are set to a taxable tax schedule. If NetSuite includes a non-taxable item to an order, then there is no tax rate for NetSuite Connector to overwrite. For more information, see Taxable Items.
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Verify if you have a tax plug-in installed in NetSuite. Some tax plug-ins require additional mappings or settings in NetSuite Connector to work properly. For example, Avalara plug-in requires NetSuite Connector to check a box to specify that this plug-in should not overwrite the tax rate that NetSuite Connector sends. Refer to the plug-in documentation for any NetSuite fields or settings that you need to set to prevent overwriting tax rates.
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Verify if you have an automation in NetSuite that adjusts tax rates, addresses, customers, or any other value on the order that may trigger a tax recalculation.
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Verify if you use line item taxes in NetSuite. Ensure that you have NetSuite Connector set to use line item taxes. In NetSuite Connector, go to Settings > General. On the NetSuite Settings page, check the Line-Item Taxes Are Enabled In Your NetSuite box.
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Check if there are conflicts between your NetSuite tax settings and storefront tax settings.
Tax Code Mapping
NetSuite Connector strongly discourages mapping tax codes to NetSuite for several reasons. First, these two platforms have different functions. NetSuite is designed to calculate tax using tax codes, while NetSuite Connector transmits information from one platform to another. Second, if you update tax codes or add new ones in NetSuite, then you must also update the mappings in NetSuite Connector. A support personnel often edits these mappings, which requires a support ticket. Finally, mapping tax codes may create tax total discrepancies between NetSuite and marketplace/cart, which may generate posting errors on orders.
Incorrect Tax Code or Tax Item
If you notice an incorrect tax code or tax item in NetSuite, check the tax nexus setup. As a leading practice, ensure that you manage tax codes and tax items in NetSuite, not in NetSuite Connector. You can test any adjustments to the nexus by manually creating an order in NetSuite and verifying if the system assigns the correct tax code.
For information about how to set up tax nexuses, codes or schedules, refer to the NetSuite Help Center or contact NetSuite Support.