# Glossary Source: https://developer.avalara.com/ecommerce-integration-guide/about-this-guide/glossary/ Review this glossary to better understand terms used in this integration guide and in AvaTax. A - Above the rack A rack space where fuel is held within the bulk transfer terminal system. - Amendment A return that amends the original tax filing. Each amendment has an associated sequence, which is created after the previous one is marked as 'Filed'. An amended sequence will have a value higher than zero. - API client A set of routines, protocols, and tools for building software applications. An API specifies how software components should interact and APIs are used when programming graphical user interface (GUI) components. - At the rack A rack space where fuel is at a dock, platform, or open bay. The location has metered pipes, hoses, or both that are used to dispense fuel from a refinery or terminal into a truck, railcar, maritime vessel, or aircraft. The majority of federal excise taxes on motor fuels are collected at the rack when fuel is removed from bulk storage terminals. B - Below the rack A fuel space where fuel is located outside the bulk terminal transfer system (in retail stations, fuel trucks, railcars, and so on). - blanket exemption A certificate that provides a seller the authority to exempt a buyer's entire transaction from sales tax. It's typically attached to the original invoice at the time of sale, and it contains the comapny name, effective date, reason code, and purchaser's exemption number. - Business account A type of business associated with a Business Entity: buyer, carrier, consignor, position holder or seller. It contains ownership specific licensing information for the parent entry of Business Entity. One Business Entity can have multiple Business Accounts. - Business entity Another company with whom your company does business. The information is stored in a table that is common to all users within the same master Company Entity. - business identification number In AvaTax, the business identification number (BIN) is assigned to a non-U.S. country. For example, this is a Canadian BN (business number) or a European VAT (value-added tax) number. - Business Profile Instructions to the software to adjust the default taxation based on conditions. C - Calculation view Used for amended returns to indicate whether only the current amended return values are included, or a full replacement of return values across all header sequences should be included. - child company A company that inherits its tax profile from a parent company in AvaTax. - collection authorities Jurisdictions where you’ve registered to collect and remit tax. - commit An Avalara term interchangeable with "record," specifically as it applies to recorded or recording documents. - Common codes Company Zero data table that provides values for dropdown lists and application functions. - Company The Company table holds the required information about your business, including business, legal, and trade name; ID type (FEIN, social security number, and so on); main contact person; physical and mailing addresses; and account information for jurisdictions and taxpayer types. - company code In accounting software that works with AvaTax, this represents the code that the software uses to identify itself to AvaTax. - company profile The information people tell us about their business that determines how AvaTax calculates tax (such as where they're registered to collect and pay tax, the products they sell and where they sell them, and whether they have exempt customers). - Company Zero Company Zero contains data built into the software. It is system defined and can only be changed via software release. End users may not change Company Zero settings, though the software does allow for overriding some of its values with custom settings. A few examples are tax rates, products, countries, jurisdictions, and terminal locations. - Context menu Allows operations to be performed on a record in the data grid. Context menus are accessed with a mouse click on the data row in the grid display. Options showing as grayed out are not available to the current user. D - DAP Delivered at Place. For customs duty and import tax transactions, this indicates that the seller is responsible for all delivery aspects, including packaging, documentation, export approval, loading charges, and ultimate delivery. The buyer is responsible for unloading. The buyer is also responsible for import clearance and any applicable local taxes or import duties. - Data file import The process of importing a formatted list of invoices or data records into Schedule Transactions. - DDP Delivered Duty Paid. For customs duty and import tax transactions, this refers to a seller who assumes all responsibility of transporting the goods until they reach an agreed-upon destination. The buyer is responsible for unloading. In these scenarios, the the seller is responsible for all applicable taxes and import duties. - document code In AvaTax, the unique identifier number for an invoice, credit memo, or return. - drop shipment A transaction in which the seller of goods passes the customer's order and shipment details to a 3rd party who then sends the goods to the customer. Also called drop shipping. - Dual list box Allows for more than one item selection at a time. A radio button on the box is selected to help filter the selection view, and the choices are moved from the left to right frame of the box. E - entity use code A method for categorizing tax-exempt customer transactions. The entity use codes represent exemption reasons based on government laws. - ERP A system by which organizations track and manage essential operations such as resources, development, sales and delivery, and finance. ERP systems aid the flow of internal business processes and allow for communication between a business's departments and its internal functions and data. - exempt customer A buyer who is exempt from sales and use tax - exempt reason The reason a person or business is requesting tax exemption. This can be be based on the product type, business type, or the purpose of the purchase. - exemption certificate A document issued by a controlling taxing entity that certifies a business or individual is exempt from a tax liability. - exemption number A unique identifier for each exemption certificate document. F - Filing period The tax month and tax year for which a return is filed. The Filing Period is a part of the Session. It also can contain more than one Sequence. - FTA Federation of Tax Administrators. A uniformity committee that promotes consistency in fuel tax reporting. G - geolocation The process of assigning latitude and longitude to a street address. - Grid lines Lined grids are used to display data lists throughout the application. Grid displays provide the ability to sort, filter and export data. - GST A tax that is due at various turnover stages of the production and distribution pipeline. Although it is realized as an individual sales tax, the legal tax liability falls on the supplier of the goods or services. In the EU, this tax is called "value-added tax (VAT)," elsewhere it is called "goods and services tax (GST)." I - item code A unique identifier for an item (including products, services, and charges). J - jurisdiction A geographic area, as defined by a tax authority, in which certain taxes must be paid. - Jurisdiction An area subject to its own distinct tax regulations, such as state, city, county, and municipality. L - location In AvaTax, a record of the physical presence of a company or its personnel. - Location A destination or origin for goods subject to excise tax. There are two types of locations: Terminal an non-terminal. M - Manual entry Entering records individually via the Schedule Transaction Update screen. - marketplace facilitator (MPF) A marketplace facilitator, or MPF, is anyone that provides a forum that lists or advertises taxable tangible personal property for sale by marketplace sellers; directly or indirectly collects receipts from the customer and remits payments to the marketplace seller; and is compensated for such services. - marketplace location A taxonomy facet that designates the geographic area in which an Avalara product is sold or marketed. - merchant of record The party that is billing for the items on a transaction. This merchant's name will appear on your billing statements. N - nexus A connection between a business and a taxing jurisdiction that creates a legal requirement for the business to register and remit taxes within the jurisdiction. In AvaTax, configure nexus to identify jurisdictions where you're registered to collect and remit tax. O - online marketplace An ecommerce system that manages transactions between multiple sellers and buyers. - OTP OTP, or "other tobacco products" refers to any tobacco product that does not fall under cigarette, cigar, or vape categories. This can include items like rolling paper, cigarette tubes, chewing tobacco, and so on. P - Product code Tax jurisdictions apply a unique code to each fuel product reported. For example, gasoline is commonly given the product code 065, but this can vary between tax jurisdictions. - product taxability Indicates whether the products and services you sell are fully taxable, partially taxable, or non-taxable. This varies based on the product or service type, amount, and quantity; the transaction date; and the jurisdiction. Sometimes just referred to as taxability. - Product type or category A product type can include more than one product code. For example, if the same taxes apply to gasoline as to gasohol, those 2 distinct product codes can share one product type. Assigning the product type allows more than one product code to report on the same line on a tax return. Q - Query wizard A built in reporting utility that uses menu selections to build SQL queries of schedule transactions. - quote-to-cash Describes the end-to-end transaction experience or document lifecycle. This lifecycle begins as a quote and ends with a committed transactions and a payment. R - Rack Racks are the spaces used for storing fuel. When describing more specifically where fuel is stored, the options can be: above the rack, at the rack, and below the rack. - Release A release is a software update. Each release has its own version number. For SaaS clients, the update is applied automatically to the software. - Return The prepared form used to calculate taxes. Tax returns are specific to and typically supplied by the filing jurisdiction. - Role User permission assigned to a list of application screens. There are three types of roles: Edit, View, and No Access. S - sales tax A domestic transaction tax in the U.S. on the retail sales of goods and services. - Scenario A unique combination of transaction type, title transfer code, origin country/state, destination country/state, and product category. - Schedule transactions The data records imported or manually entered in a session. - seller use tax A percentage of the purchase price required by a state or other political entity in cases where the seller does not have a physical presence in that entity but has enough economic presence to have nexus. It ensures that the buyer's home entity receives a tax payment from the transaction. The duty to report and pay the tax lies with the seller. - Sequence The original tax return for a session will have a sequence number of 0 and all subsequent amended returns for the original will have a sequence number one higher than the previously completed return. The first amendment is Sequence 1, the second is Sequence 2, and so on. - Session Tax returns in this application are filed by session. All return data is organized by session (also called Filing Session or Tax Session). A session is a unique combination of Company, Jurisdictions, Taxpayer Type and/or Terminal, Filing Period, Year, Sequence (there may be multiple sequences in a session). - Software license type Your license type is determined when you sign your contract with Avalara, and a key is issued accordingly. The license key determines the options that you will have in the software. The license types for Avalara Returns are Enterprise, Express, Pro, and Self-hosted (deployed). - stock keeping unit (SKU) The lowest level of charge granularity related to a stand-alone product or product add-on that is unique in its pricing model, billing method, or revenue recognition implications. T - tax code A predefined tax rule that determine the tax rate for a product depending on what it is and where it's sold. - tax rule A custom setting that overrides the way AvaTax calculates tax on transactions. A tax rule may belong to one of 4 types: Taxability, Exempt Entity, Rate Override, or Base Override. - Taxpayer type The table in which the tax filing choices for each jurisdiction’s taxpayer type are saved. - technology partner A business that's signed a formal contract to build a repeatable integration to Avalara's product suite. - transaction The record of an invoice, credit memo, or return. - Transaction validation Provides information on critical errors, warnings, and informational messages for Schedule Transactions for a tax session. Selecting a record in the Validation Results will open the Schedule Transaction Update screen to allow data correction. U - UUID Universally unique identifier. V - varying taxability The way products and services are taxed at different rates in different jurisdictions. - VAT A tax that is due at various turnover stages of the production and distribution pipeline. Although it is realized as an individual sales tax, the legal tax liability falls on the supplier of the goods or services. In the EU, this tax is called "value-added tax (VAT)," elsewhere it is called "goods and services tax (GST)." Z - ZZ schedule transactions Data records lacking the information to determine what Schedule should be assigned on import. They can also be records intentionally entered that contain information specific to the tax filing. ZZ Schedules Transactions are not reported on a return or e-filing.