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Senior Explorer *

Out Of Scope Agency Payable Liability Account (Sales Tax)

Hello,

 

I use AvaTax to calculate my sales tax via QuickBooks Online.  While I do have the QBO Automated Sale Tax activated, I do not use it as I have AvaTax send all tax amounts to a Sales Tax Payable liability account.  

 

I do have a question regarding the Out Of Scope Agency Payable account.  After creating invoices, sales tax is calculated through AvaTax and added to the Sales Tax Payable liability account.  At the same time every invoice sends a $0.00 to the Out Of Scope Agency Payable liability account.  Does anyone know what this account is?  Can I delete it?  Or would that affect my already created invoices.

 

Thank you!

3 Comments
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QuickBooks Team

Re: Out Of Scope Agency Payable Liability Account (Sales Tax)

Hi there, @R_Crane.

 

I'd be pleased to help share information about the Out of Scope Agency Payable account.

 

The Out of Scope Agency Payable account is one of the default accounts created by QuickBooks Online (QBO) and use for sales tax recording. Any transaction which is selected as taxable, but has $0.00 tax amount it will be posted to the Out of Scope Agency Payable Liability account.

 

Since you're using AvaTax to calculate sales tax via QBO, the amount of taxes calculated is added to the Sales Tax Payable Liability account. QBO calculate $0.00 amount that is posted to the Out of Scope Agency Payable Liability account.

 

In addition, the account can't be deleted since it's a default account in QuickBooks.

 

To learn more about sales tax in QBO, you may check this article: Sales tax in QuickBooks Online.

 

Don't hesitate to add a post/comment below if you have any other sales tax concerns. I'll be always here to help you!

Senior Explorer *

Re: Out Of Scope Agency Payable Liability Account (Sales Tax)

Thank you so much for the information.  It's very helpful.  

 

I do have another somewhat related question.  Since the Out Of Scope cannot be deactivated, would you know if there is a way to turn off the QBO sales tax amount from appearing on printed invoices?  My invoices currently show the correct AvaTax sales tax amount as a line item, then at the bottom show $0.00 for QBO sales tax.  This is a duplication and is somewhat confusing to customers.

 

Thank you again.

Russ

QuickBooks Team

Re: Out Of Scope Agency Payable Liability Account (Sales Tax)

I can help you with this, R_Crane.

 

You can customize the invoice template and uncheck the Tax column in the Activity table section. This allows you to print an invoice without the sales tax amount and taxes will only show in the Tax Summary section. I've provided some screenshots below for your reference.

 

For more details on how to customize your invoice template, please follow the steps below:

  1. Click the Gear icon on the top menu.
  2. Choose Custom Form Styles.
  3. Choose your invoice template, then click Edit under Action column.
  4. Click Content.
  5. Click the invoice's Table.
  6. Under Columns, uncheck Tax.
  7. Click Done.

I found a helpful article more details about customizing invoice: How to customize invoices, estimates, and sales receipts.

 

Just reply to this thread if you have additional questions.I'd be glad to help.

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