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Avalara Help Center

Reconcile and review liabilities

After our compliance team reviews your scheduled returns, you're nearly ready to file. First, though, you should review the calculations, reconcile your returns with your business application and Avalara, and check for any deductions or prepayments.

Steps

  1. Review the liability summary.
    You should review the liability summary for each client every month.
  2. Reconcile using the liability summary and reports.
    Generate reports to assist with reconciling the amounts and totals with your clients' general ledger and accounting software against the liability summary.
  3. Add recurring prepayments and prior payments.
    Add prepayments for any jurisdictions that require a portion of tax to be prepaid before filing a return, and prior payments to note payments that your client has already made to the jurisdiction.
  4. Monitor and apply carryover credits.
    Keep track of carryover credits, which are transactions with a negative tax amount that are excluded from returns to prevent a negative tax liability.
  5. Lock the liability summary to approve returns to be filed.
    After reconciliation, let us know that the returns are ready to be filed by locking the liability summary.
  6. Unlock the liability summary when you need to make adjustments.
    If you need to make adjustments to a return after you've locked it, submit a request to have it unlocked.
  7. Recalculate the liability summary after making adjustments.
    Make sure to recalculate the liability summary after you make adjustment to transactions, prepayments, or prior payments.
  8. Review unassigned transactions that won't be reported on returns.
    When a transaction is unassigned, it means that it won't be reported on any of the return forms that you've set up. Review these transactions to see if you need to set up a new return form.
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