# Filing returns overview

Source: https://developer.avalara.com/products/returns/integration-guides/managed-returns/wdd3317684882188/

Guide: Avalara Managed Returns API (U.S. and Canada)

# Filing returns overview

Understand the automated process Avalara uses to file returns on a recurring basis.

Once a merchant configures the return form and approves the filing calendar, Avalara starts the automated return filing process.

This process recurs based on the filing frequency set during setup, such as **monthly**, **quarterly**, or **semiannually**, depending on the jurisdiction and form.

Each filing cycle follows the same core workflow:

## Filing cycle workflow

The filing cycle has these steps:

1.  **Ingest transaction data**

    At the start of each filing cycle, transaction data for the merchant is imported via API. This includes all taxable and exempt sales relevant to the return period.

2.  **Reconcile Liability summary**

    Avalara generates a liability summary using the ingested data. This includes:

    -   Total taxable sales

    -   Tax collected

    -   Jurisdictional allocation

    -   Prepayments or credits carried forward (if applicable)

    Partners or merchants can review this summary to verify the totals before submission.

3.  **Make adjustments (if needed)**

    If necessary, adjust account for:

    -   Prior payments

    -   Manual tax credits

    -   Amended transactions

    Complete these adjustments before you lock the return for submission.

4.  **Lock and approve the return**

    Once verified, Avalara locks the return to prevent further changes. This approval step makes sure that the return is ready for filing.

5.  **Avalara submits the return**

    Avalara submits the return to the appropriate tax authority using the method defined during setup (e-filing, web upload, or manual).

6.  **Payment and confirmation**

    If a Funding POA is on file, Avalara withdraws funds and remits payment on the merchant’s behalf. A filing confirmation and payment record are stored and made available via the API.

## Filing is a recurring process

This workflow repeats automatically according to the filing calendar frequency for each return. Partners need to design their systems to:

-   Continuously ingest transaction data

-   Poll for return status updates

-   Show filing status and confirmation details to merchants