How to prevent transactions from being sent to Avalara from Sage Sales Tax?

I am using Sage Sales Tax to report US tax transactions to Avalara and processing sales through Amazon Seller Central, which already sends these transactions directly to Avalara. While the same transactions must still be entered in Sage X3 for revenue and inventory purposes, they should be excluded from Sage Sales Tax to avoid duplication. Attempts to disable tax calculation—such as setting Calculate All Documents to No or applying a tax exemption number—stop tax from being calculated but do not prevent the transaction from being transmitted to Avalara. A more targeted exclusion method is required.

When the “Calculate All Documents” setting is set to No in the Sage Sales Tax connection setup, the Entity/Use Code field should become available in the customer or ship-to address configuration.

To exclude Amazon-related transactions from Avalara processing, you can assign a custom Entity/Use Code to those customers or transactions. This code can be configured within Avalara to prevent Sage X3 from transmitting those records, while still allowing them to be processed in X3 for revenue recognition and inventory updates.

For assistance on how to set this up, please review the X3 Community Blog