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Add adjustments to the liability summary

This article applies to:Avalara Returns for Accountants

Before you begin preparing a return, you may need to add adjustments to the liability summary. These can include prepayments, prior payments, rounding, and several other adjustment types.

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Note

If your client makes recurring prepayments, you can add the prepayment amount directly to the filing calendar. The prepayment amount is then automatically added to the liability summary each filing period, so you don't need to manually add it.

Before you begin

  • Reconcile using the liability summary and reports.
  • To ensure that Avalara can accurately calculate prepayments, make sure that the company has imported at least one year of transaction data.

Steps

  1. In Returns for Accountants, go to Returns > Liability Summary.
  2. Use filters to find the summary to which you want to add an adjustment, then select Go to view the liability.
    Liability summaries with the Pending Approval status are ready for review, and can be locked.
  3. Select a state from the upper table to view the state liability and local liability in the lower table, summarized by filing calendar.
  4. In the lower table, select the arrow icon to the left of the form name to view the liability summary details.
  5. Select Add Adjustments, then enter the adjustment details:
    • Adjustment type: Select one of the following adjustment types:
      • Discount: A timely-filing or vendor discount. Avalara automatically calculates the discount amount, but you can edit the amount if necessary.
      • Marketplace: The amount of liability that has already been remitted by a marketplace facilitator, such as Amazon or Etsy. Avalara automatically calculates this amount based on transactions with a marketplace remits tax location code. Add or adjust this amount if the current amount is incorrect.
      • Prepayment: An additional payment that you're making toward future liability, on top of any liability owed for the current filing period.
      • Prior payment: A payment amount that has already been remitted to the taxing jurisdiction toward the liability owed for this filing period. This reduces the amount due to the taxing jurisdiction. 
      • Rounding: Adjustments to account for differences in rounding methods. Avalara automatically calculates the rounding adjustment, but you can edit the amount if necessary.
      • Jurisdiction issue credit: A credit amount that you have on file with the jurisdiction
      • Other: Select this option if none of the other adjustment options describe the type of adjustment you're make. When you select this option, the adjustment doesn't automatically flow to the return form editor you'll use to prepare the return.
    • Period: Select if the adjustment applies to the current filing period or the next filing period.
    • Account type: The accounting type. Select one of the following:
      • Accounts payable
      • Accounts receivable
      • Both
      • None
    • Amount: Enter the dollar amount of the adjustment.
    • Reason: Enter a reason for the adjustment.
  6. Select Save when you're done.

The adjustment is saved. Adjustments can also be added or adjusted from Returns > Filing tasks.

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