NetSuite Line-Level Tax Integration

Contents

Overview

The NetSuite Line-Level Tax Integration enables end-to-end tax handling at the invoice line level by combining configuration in both Ordway and NetSuite.

This integration ensures that:

• Ordway sends tax data at the line level
• NetSuite is configured to accept and process line-level taxes
• Taxes are applied directly to each transaction line instead of using a separate tax line item

Together, these configurations improve reporting accuracy, eliminate redundant tax lines, and align with NetSuite’s native tax capabilities.

How the Integration Works

To enable line-level tax successfully:

1. Configure NetSuite to support line-level tax
   • Enable Advanced Taxes
   • Set up Nexus
   • Enable per-line tax calculation
2. Configure Ordway to send tax at the line level
   • Enable Line-Level Tax in integration settings
   • Map tax agencies and accounts

Once both systems are configured:

• Tax is calculated and applied per line item
• No separate tax line is created
• NetSuite automatically aggregates total tax

Key Benefits

• Eliminates separate tax line items
• Enables accurate line-level tax reporting
• Improves financial and reconciliation accuracy
• Supports multiple tax rates across products 

Ordway Integration 

In Ordway, Line-Level Tax must be enabled to ensure tax data is sent correctly to NetSuite at the transaction line level.

Prerequisites

• NetSuite integration must be active
• Tax codes must be configured in NetSuite
• Proper item mapping must be available

Behavior

When Disabled (Legacy Behavior)

• Tax is calculated at the invoice level
• A separate tax line item is created using a configured tax product

Example

When Enabled (Line-Level Tax)

• Tax is calculated per invoice line
• No separate tax line is created

Example

Configure Line-Level Tax

1. Go to Settings → Integrations → Integration Settings. The Integration Settings page is displayed.
   
2. Under NetSuite, click Settings. The NetSuite - Integration Settings page is displayed.
   
3. Click DEFAULT SETTINGS. 
   
4. Enable the Enable Line Level Tax toggle.
5. Set the NetSuite Tax Agencies.
   • Select the tax agency configured in your NetSuite account
   • Required for creating tax codes
6. Set the NetSuite Tax Account
   • Select the account used for tax reporting in NetSuite
   • Required for line-level tax processing
7. Click Save. The settings are saved and “Default Settings are Updated” confirmation message appears.

Behavior Changes

When Line-Level Tax is enabled:

• The Tax Item (product-based tax) is no longer used
• Taxes are not sent as a separate invoice line
• Tax codes are created and applied at the line level

Data Mapping

Use Cases

Multiple Tax Rates

Different items can have different tax rates:

• Product A → 5%
• Product B → 18%

Each line will have its own tax calculation and corresponding tax code.

Limitations

NetSuite Configuration

NetSuite must be configured to accept and process line-level tax. Without this setup, Ordway line-level tax data cannot be applied correctly.

To support line-level tax calculation in NetSuite, you must:

• Enable the Advanced Taxes feature
• Configure Nexus for your country
• Enable Per-Line Taxes on Transactions

Before you begin

Ensure that:

• You have administrator access in NetSuite
• The required tax configurations for your region are available

Enable Advanced Taxes

1. Go to Setup → Company → Enable Features.
   
2. Open the Tax tab.
   
3. Select Advanced Taxes checkbox.
4. Click Save.

Configure Nexus

Nexus defines the tax jurisdictions applicable to your business.

1. Go to Setup → Accounting → Nexuses.
   
2. Check if a Nexus exists for your country.
   • If a Nexus exists, verify the configuration.
   • If no Nexus exists:
3. Click New Nexus.
   
4. Enter the required details (country, state, etc.).
5. Click Save.
   

Enable Line-level Tax

1. Go to Setup → Accounting → Set Up Taxes.
   
2. If multiple countries are enabled:
   • Select the relevant country tab
3. Under the Tax section:
   • Select Per-Line Taxes on Transactions
   • Select the appropriate Tax Agency
4. Click Save.
   

Result

After completing these steps:

• Line-level tax calculation is enabled
• Taxes are applied at the individual line-item level on transactions

Notes

• If only one country is configured, the tax settings appear directly without tabs
• Ensure the correct Tax Agency is selected to avoid calculation errors

Troubleshooting

Best Practices

• Configure Nexus before enabling line-level tax
• Validate tax setup in a sandbox environment
• Ensure consistent tax agency mapping across transactions

Related Topics

• Refer to NetSuite Integration Guide