Has anyone had the sales tax change on unpaid invoices after moving from Avalara to QBO's Sales Tax module?

Hello, @Tammy Wo. I appreciate the opportunity to assist you with navigating the sales tax settings within the program.

Indeed, the changes in sales tax when reopening an unpaid invoice are commonly attributed to discrepancies in tax codes.

Upon moving invoices into QuickBooks Online (QBO), each invoice contains specific items/services, each associated with sales tax. QBO facilitates the categorization of your products with the appropriate sales tax. Unfortunately, a comprehensive list of QBO tax codes and their respective descriptions for product applications isn't readily available. As such, you will need to manually configure these in the system.

Moreover, QBO calculates sales tax based on the ship-to and ship-from addresses indicated on your sales forms.

Now, regarding your specific situation, you have 2 options:

• You can manually add Avalara's legacy tax codes into QuickBooks and link them to the appropriate income accounts and service items on your invoices, or using them for each transaction. This might take time, but it gives you control over every detail.

• Alternatively, you might prefer to update each item or service in QuickBooks to ensure it has the right description, along with pre-configured categories and rates already established. This method is more straightforward and automatic. Here's how:

1. Go to the Gear icon and then select Products and services.
2. Locate the item and then click Edit.
3. Scroll down to the Sales tax section.
4. Click Edit sales tax.
   
   
   
   
5. Set the correct tax rules.
6. After that, hit Done, then Save and close.

Additionally, I've added these resources to help you set up and use the automated sales tax feature in QuickBooks Online:

• Learn how QuickBooks Online calculates sales tax
• Set up and use automated sales tax in QuickBooks Online

Need additional assistance with bookkeeping or navigating QuickBooks? Our QuickBooks Live Expert Assisted team is here to help. We offer support for a broad array of business tasks, ensuring you get the guidance you need when you need it.

As we wait for other participants to join, please feel free to let me know if you need further clarification or assistance with your Avalara invoices or any other QuickBooks-related concerns. I'm here to help, Tammy. Take care.