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Community Contributor *
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How do I balance a credit in Avalara when I use them to pay my sales tax? I am not sure if a "wash" bank account would work or how to set one up.

I manually enter my sales tax payment into QBO, but I don't have an option for payment with Avalara. A recent payment included a credit on my sales tax that Avalara is holding towards a future sales tax payment. Because of this, my accounts won't balance.
Best answer a month ago

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Community Contributor *

Re: How do I balance a credit in Avalara when I use them to pay my sales tax? I am not sure if a ...

Thank you for the instructions. I will set this up this weekend and see if works with balancing everything out. You'll be the first to know if I flub this up.

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QuickBooks Team

Re: How do I balance a credit in Avalara when I use them to pay my sales tax? I am not sure if a ...

Hello there, @I Otter Be.

 

I'm here to help you today so you'll be able to use the Avala when paying sales tax in QuickBooks Online (QBO).

 

Yes, you can create a wash account and use that account when paying the sales tax manually. Let me help guide you how.

 

First, create a wash account:

 

  1. Click on the Gear icon.
  2. Select Chart of Accounts under Your Company.c4 chart of accounts 1.PNG
  3. Click on New.
  4. Fill in the desired information under Account.
  5. Add/enter the account name (Wash Account/Avalara) under Name.
  6. Enter the balance under the Balance section.
  7. Click Save and close.c4 create a new account.PNG

For additional reference about creating a new account in QBO, you may check it here: How to create a new parent account or subaccount.

 

Once done, select the account created when paying the sales tax by clicking on the drop-down arrow beside Bank Account.c4 paying ST.PNG

 

That should do it. To learn more about sales tax, you may check these articles:

 

Please know that I'll be right here to help you if you have any other QuickBooks or sales tax questions, just add a post/comment below. Have a great day ahead!

Community Contributor *

Re: How do I balance a credit in Avalara when I use them to pay my sales tax? I am not sure if a ...

Thank you for the instructions. I will set this up this weekend and see if works with balancing everything out. You'll be the first to know if I flub this up.