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Working with current and deferred tax accounts

You can use the Current and Deferred Tax editor to manage settings for current and deferred tax accounts. When temporary difference symbols, as well as other symbols used in the Deferred Tax calculation, are added to the system, current and deferred tax accounts need to be updated. For information on setting up the default selections for the Current and Deferred Tax editor, see “Configuring Deferred Tax automation settings” and “Configuring symbol defaults”.

Current and deferred tax calculation settings

Complete the general settings:

Field

Notes

Classification Level

Specify the level at which the system ignores child symbols and classifies each deferred tax account based on the selected parent. The topmost level selected is the level used for the classification.

For example:

  • If you want deferred tax balances to be classified at each temporary difference, select a classification level for each temporary difference account.
  • If you want deferred tax balances to be classified at the total GAAP to STAT temporary difference level, select the classification level at the GAAP to STAT parent temporary difference account. This overrides the classification level setting at the temporary difference account level below the parent level GAAP to STAT temporary difference.

Current/Non-Current

Specify whether the deferred tax account should be classified as current or non-current using one of the following values:

  • Current—Classifies the account as current.
  • Non-Current—Classifies the account as non-current.

The default for this setting is based on the value set for Account Default Setting for Deferred Tax Current/Non-Current in the System Settings editor.

Income/Equity/OCI

This setting displays only if Use Income/Equity/OCI Setting is selected in the System Settings editor. If Use

Income/Equity/OCI Setting is cleared, all added accounts are classified as Income accounts.

This field can be set only for current and deferred tax leaf accounts using the Current and Deferred Tax editor. Use the Book-Tax Difference editor to set permanent or temporary difference accounts, and the Net Income Before Tax editor to set NIBT accounts.

Specify the way the deferred tax account is classified using one of the following values:

  • Income—Classifies the account as an Income account.
  • Equity—Classifies the account as an Equity account.
  • OCI—Classifies the account as an Other Comprehensive Income account.

The default for this setting is based on the value set for Account Default Setting for Deferred Tax Income/ Equity/OCI in the System Settings editor.

Rate Change Treatment

This setting is available only for ASC systems.

This setting applies only if Use Rate Change Treatment Setting is set to TRUE in the System Settings editor.

This field can be set only for deferred tax leaf or temporary difference accounts.

Specify whether rate change for the deferred tax account is treated as income, equity, or OCI using one of the following values:

  • Income—Calculates the rate change as an income rate change.
  • Equity—Calculates the rate change as an equity rate change.
  • OCI—Calculates the rate change as an OCI rate change.

The default for this setting is based on the value set for Account Default Setting for Deferred Tax Rate Change Treatment in the System Settings editor.

Values Entered as Gross

This setting applies only if Global/Entity is set to Global. This field can be set only for deferred tax leaf or temporary difference accounts.

Select this option if values for this deferred tax account will be entered as gross amounts. If you select this option, the system calculates tax-affected values for the account. If you do not select this option, the amount from the Temporary Differences input app is transferred to the Deferred Tax report without applying the tax rate.

The default for this setting is based on the value set for Account Default Setting for Deferred Tax Values Entered as Gross in the System Settings editor.

Include in National Benefit of Region

This setting applies only if Global/Entity is set to Global. This field can be set only for deferred tax leaf or temporary difference accounts, and applies only for entities that calculate a regional provision and are eligible for a regional deduction.

Select this option to include the deferred tax account when calculating National Benefit of Region.

The default for this setting is based on the value set for Account Default Setting for Deferred Tax National Benefit of Region Calculation in the System Settings editor.

Asset Sign

This field can be set only for deferred tax leaf or temporary difference accounts.

Specify the asset sign for the deferred tax account using one of the following values:

  • + classifies a positive amount as an asset and a negative amount as a liability.
  • - classifies a positive amount as a liability and a negative amount as an asset.

The default for this setting is based on the value set for Account Default Setting for Deferred Tax Asset Sign in the System Settings editor.

Multi-Regional Deferred Tax Method

Select the deferred tax method for Multi-Regional Provision from one of the following:

  • Apportionment Factors—Calculates the deferred tax by multiplying the gross values by the apportionment factors entered in the related input app.
  • Tax Rate—Calculates the deferred tax by multiplying the gross values by the tax rate entered in the related input app.
  • Both—Calculates the deferred tax by multiplying the gross values by both the apportionment factors and tax rate entered in the related input apps.

Note

On the National Deferred Tax page, this field applies only to temporary difference accounts.

 

If you are using the Balance Sheet method, fill in the following fields:

Field

Notes

Automate Temporary Difference Ending Balances

This setting displays only if Deferred Tax Automation — Automation Method is Balance Sheet or Deferred Tax Automation — Display Settings is Display Balance Sheet Method Settings in the System Settings editor.

This field can be set only for deferred tax leaf or temporary difference accounts.

Select this option to automate temporary difference ending balances for the deferred tax account. Use this automation to calculate the value in the unexplained difference column to automate the end of year balance in the gross temporary difference rollforward.

%

This field is available only if Automate Temporary Differences Ending Balance is selected.

This field can be set only for deferred tax leaf or temporary difference accounts.

Specify the percentage of the amount to transfer. The amount transferred is the percentage specified by the source amount.

The amount must be a number from -100 through 100 and can have a maximum of two decimal places.

Source Accounts

This field is available only if Automate Temporary Difference Ending Balances is selected.

This field can be set only for deferred tax leaf or temporary difference accounts.

Specify the source accounts for the ending balance. You can select one or more parent or leaf symbols from the chart of accounts.

Valid symbols are those set for Deferred Tax Automation — Valid Source Accounts in the System Settings editor.

Source Reporting Methods

This field is available only if Automate Temporary Difference Ending Balances is selected.

This field can be set only for deferred tax leaf or temporary difference accounts.

Specify the source reporting method for the ending balance. You can select one or more parent or leaf symbols.

Valid symbols are those set for Deferred Tax Automation — Valid Source Reporting Methods in the System Settings editor.

Source Details

This setting displays only if Deferred Tax Automation — Target Detail Symbol is set in the System Settings editor. If Deferred Tax Automation — Target Detail Symbol is cleared, all details are transferred from and to the same symbols.

This field is available only if Automate Temporary Difference Ending Balances is selected. This field can be set only for deferred tax leaf or temporary difference accounts.

Specify the source details for the ending balance. You can select one or more parent or leaf symbols.

Valid symbols are those set for Deferred Tax Automation — Target Detail Symbols in the System Settings editor.

Source Segments

This setting displays only if Deferred Tax Automation — Target Segment Symbol is set in the System Settings editor. If Deferred Tax Automation — Target Segment Symbol is cleared, all details are transferred from and to the same symbols.

This field is available only if Automate Temporary Difference Ending Balances is selected.

This field can be set only for deferred tax leaf or temporary difference accounts.

Specify the source segments for the ending balance. You can select one or more parent or leaf symbols.

Valid symbols are those set for Deferred Tax Automation — Valid Source Segments Symbols in the System Settings editor.

If you are using the Temporary Difference method, fill in the following fields:

Field

Notes

Automate Temporary Difference Ending Balances

This setting displays only if Deferred Tax Automation — Automation Method is Temporary Difference or Deferred Tax Automation — Display Settings is Display Temporary Difference Method Settings in the System Settings editor.

This field can be set only for deferred tax leaf or temporary difference accounts.

Select this option to calculate the value in the current year activity column or the unexplained difference column to automate the end of year balance in the gross temporary difference rollforward.

Automate Accounting Basis

This setting displays only if Deferred Tax Automation — Automation Method is Temporary Difference or Deferred Tax Automation — Display Settings is Display Temporary Difference Method Settings in the System Settings editor.

This field can be set only for deferred tax leaf or temporary difference accounts.

Select this option to automate the accounting basis for the deferred tax account.

% — Accounting Basis

This field is available only if Automate Temporary Differences Ending Balance is selected.

This field can be set only for deferred tax leaf or temporary difference accounts.

Specify the percentage of the amount to transfer. The amount transferred is the percentage specified by the source amount.

The amount must be a number from -100 through 100 and can have a maximum of two decimal places.

Source Accounts – Accounting Basis

This field is available only if Automate Temporary Difference Ending Balances is selected.

This field can be set only for deferred tax leaf or temporary difference accounts.

Specify the source accounts for the ending balance. You can select one or more parent or leaf symbols from the chart of accounts.

Valid symbols are those set for Deferred Tax Automation — Valid Source Accounts in the System Settings editor.

Source Reporting Methods – Accounting Basis

This field is available only if Automate Temporary Difference Ending Balances is selected.

This field can be set only for deferred tax leaf or temporary difference accounts.

Specify the source reporting method for the ending balance. You can select one or more parent or leaf symbols.

Valid symbols are those set for Deferred Tax Automation — Valid Source Reporting Methods in the System Settings editor.

Source Details – Accounting Basis

This setting displays only if Deferred Tax Automation — Target Detail Symbol is set in the System Settings editor. If Deferred Tax Automation — Target Detail Symbol is cleared, all details are transferred from and to the same symbols.

This field is available only if Automate Temporary Difference Ending Balances is selected. This field can be set only for deferred tax leaf or temporary difference accounts.

Specify the source details for the ending balance. You can select one or more parent or leaf symbols.

Valid symbols are those set for Deferred Tax Automation — Target Detail Symbols in the System Settings editor.

Source Segments – Accounting Basis

This setting displays only if Deferred Tax Automation — Target Segment Symbol is set in the System Settings editor. If Deferred Tax Automation — Target Segment Symbol is cleared, all details are transferred from and to the same symbols.

This field is available only if Automate Temporary Difference Ending Balances is selected.

This field can be set only for deferred tax leaf or temporary difference accounts.

Specify the source segments for the ending balance. You can select one or more parent or leaf symbols.

Valid symbols are those set for Deferred Tax Automation — Valid Source Segments Symbols in the System Settings editor.

Automate Tax Basis

This setting is available only if Automate Temporary Difference Ending Balances is selected.

This field can be set only for deferred tax leaf or temporary difference accounts.

Select this option to automate the tax basis for the deferred tax account.

% — Tax Basis

This setting displays only if Automate Tax Basis is selected.

This field can be set only for deferred tax leaf or temporary difference accounts.

Specify the percentage of the amount to transfer. The amount transferred is the percentage specified multiplied by the source amount.

The amount must be from -100 through 100 and can have a maximum of two decimal places.

Source Accounts — Tax Basis

This setting is available only if Automate Tax Basis is selected.

This field can be set only for deferred tax leaf or temporary difference accounts.

Specify the source accounts for the tax basis. You can select one or more parent or leaf symbols.

Valid symbols are those set for Deferred Tax Automation — Valid Source Accounts in the System Settings editor.

Source Reporting Methods — Tax Basis

This setting is available only if Automate Tax Basis is selected.

This field can be set only for deferred tax leaf or temporary difference accounts.

Specify the source elements for the tax basis. You can select one or more parent or leaf symbols.

Valid symbols are those set for Deferred Tax Automation — Valid Source Reporting Methods in the System Settings editor.

Source Details — Tax Basis

This setting displays only if Deferred Tax Automation — Target Detail Symbol is set in the System Settings editor. If Deferred Tax Automation — Target Detail Symbol is cleared, all details are transferred from and to the symbols.

This field is available only if Automate Tax Basis is selected.

This field can be set only for deferred tax leaf or temporary difference accounts.

Specify the source elements for the tax basis. You can select one or more parent or leaf symbols.

Valid symbols are those set for Deferred Tax Automation — Valid Source Reporting Methods in the System Settings editor.

Source Segments — Tax Basis

This setting displays only if Deferred Tax Automation — Target Segment Symbol is set in the System Settings editor. If Deferred Tax Automation — Target Segment Symbol is cleared, all details are transferred from and to the same symbols.

This field is available only if Automate Tax Basis is selected.

This field can be set only for deferred tax leaf or temporary difference accounts.

Specify the source details for the tax basis. You can select one or more parent or leaf symbols.

Valid symbols are those set for Deferred Tax Automation — Valid Source Details Segments in the System Settings editor.

Modifying current and deferred tax default settings

You can modify the default settings for current and deferred tax accounts. These default settings are applied to all entities unless the entity uses an override for that account.

To view and print current and deferred tax account default settings, use the following reports:

  • XNC0500 or XNC1500 — Deferred Tax Setup.rtp
  • XRC0500 or XRC1500 — Deferred Tax Setup.rtp
  • XNC0600 or XNC1600 — Deferred Tax Automation — Global Settings.rtp
  • XNC0601 or XNC1601 — Deferred Tax Automation — Entity Specific Settings
  • XRC0600 or XRC1600 — Deferred Tax Automation — Global Settings.rtp
  • XRC0601 or XRC1601 — Deferred Tax Automation — Entity Specific Settings
  • XNC0700 or XNC1700 — Current Tax Setup.rtp
  • XRC0700 or XRC1700 — Current Tax Setup.rtp

To configure current and deferred tax account default settings:

  1. In the Tax Provision navigation pane, click Administration.
  2. Expand Accounts.
  3. Click Current and Deferred Tax. The Current and Deferred Tax editor opens in the workspace with the National Deferred Tax page in view.
  4. Depending on the type of current or deferred tax account you want to modify, remain on the National Deferred Tax page, and continue to the next step, or click one of the following tabs:
    • National Current Tax
    • Regional Deferred Tax
    • Multi-Regional Deferred Tax (this tab replaces the Regional Deferred Tax tab in systems with Multi-Regional Provision)
    • Regional Current Tax
    • Multi-Regional Current Tax (this tab replaces the Regional Current Tax tab in systems with Multi-Regional Provision)

    Note: The National Current Tax and Regional or Multi-Regional Current Tax pages allow you to change only the Income/Equity/OCI setting for current provision (current tax charge) accounts.

  5. On the editor toolbar, click Entity.
  6. In the Entity box, type DIM2SET.
  7. Click Update. The page displays the accounts and their default settings.
  8. Fill in the calculation settings. See Current and deferred tax calculation settings.
  9. When you are finished, click Save.
  10. If you want to run calculations based on the changes you have made, click Run Calculations.

    Note: You cannot run calculations manually on automation groups.

Overriding deferred tax default settings for an entity or automation group

If you have deferred tax accounts that should use different settings than the defaults, you can override the settings for a specific entity or for an automation group. These settings override the account settings specified for the DIM2SET— Entities Default symbol.

Longview recommends that you use automation groups, when possible, to simplify maintenance.

To view and print the current configuration settings for entity-specific deferred tax accounts, use the following reports:

  1. XNC0601 or XNC1601 — Deferred Tax Automation National — Entity Specific Settings.rtp
  2. XRC0601 or XRC1601 — Deferred Tax Automation Regional — Entity Specific Settings.rtp

To override deferred tax settings for an entity or automation group:

  1. In the Tax Provision navigation pane, click Administration.
  2. Expand Accounts.
  3. Click Current and Deferred Tax. The Current and Deferred Tax editor opens in the workspace with the National page in view.
  4. On the editor toolbar, click Entity.
  5. In the Entity box, type the name of the entity or automation group for which you want to override the deferred tax account settings, or select the entity or automation group in the drop-down list. Alternatively, you can use the symbol selector.

    Note: You can override default settings for leaf entities and automation groups only. If you have already configured current and deferred tax settings for an entity or group, and the new entity or group contains similar settings, you can copy settings from one entity or group to another.

  6. Click Update. The accounts and their default settings update to reflect the selected entity or automation group.
  7. If you want to modify a regional account, click the Regional Deferred Tax Tab. Otherwise, continue to the next step.

    Note: The National Current Tax and Regional Current Tax pages do not allow you to override tax settings for an entity or automation group.

  8. Select Override Current Settings for the account that you want to specify override settings for.

    Note: You can use the Current Override column to determine whether an account already has an override for the selected entity. Overrides can be an automation group or the selected entity.

  9. Update the calculation settings. See Current and deferred tax calculation settings.
  10. When you are finished, click Save.
  11. If you want to run calculations based on the changes you have made, click Run Calculations.

    Note: You cannot run calculations manually on automation groups.

Copying account settings for deferred tax accounts

If you have previously configured deferred tax settings for a specific account, and you have another account that should use similar settings, you can copy the settings from that account.

Note: This process copies only override settings and not other settings such as Multi-Regional Deferred Tax Method.

To copy account settings:

  1. In the Tax Provision navigation pane, click Administration.
  2. Expand Accounts.
  3. Click Current and Deferred Tax. The Current and Deferred Tax editor opens with the National page in view.
  4. Depending on the type of account you want to copy settings to continue to the next step, or click the Regional Deferred Tax tab.

    Note: Copy Account Settings functionality is available for the National Deferred Tax and Regional Deferred Tax pages only.

  5. In the Entity box, type the name of the entity or automation group that contains the account that you want to copy settings to, or select the entity or automation group in the drop-down list. Alternatively, you can use the symbol selector.

    Note: If you want to copy account default settings, select DIM2SET as the entity.

  1. Select the account to copy settings to and click Copy Account Settings. The Copy Account Settings dialog opens.

    Note: You must select a leaf account.

  2. Type the name of the account to copy settings from or select the account in the drop-down list. Alternatively, you can use the symbol selector.

    Note: You must select a leaf account.

  3. Click Copy. The account settings are copied to the specified account.
  4. When you are finished, click Save.
  5. If you want to run calculations based on the changes you have made, click Run Calculations.

    Note: You cannot run calculations manually on automation groups.

Copying entity settings for deferred tax accounts

If you have previously configured deferred tax settings for a specific entity or automation group, and you have another entity or automation group that should use similar settings, you can copy the settings from that entity or automation group.

When you copy settings from one entity or group to another, the settings are copied for all deferred tax accounts, including:

  1. National deferred tax accounts
  2. Regional deferred tax accounts

To copy settings from one entity or automation group to another:

  1. In the Tax Provision navigation pane, click Administration.
  2. Expand Accounts.
  3. Click Current and Deferred Tax. The Current and Deferred Tax editor opens in the workspace with the National page in view.
  4. On the editor toolbar, click Entity.
  5. In the Entity box, type the name of the entity or automation group to copy settings to, or select the entity or automation group in the drop-down list. Alternatively, you can use the symbol selector.
  6. Click Update. The account settings update to reflect the selected entity or automation group.
  7. Click Copy Entity Settings. The Copy Settings dialog opens.
  8. Type the name of the entity or automation group to copy settings from or select the entity or automation group in the drop-down list. Alternatively, you can use the symbol selector.
  9. Click Copy. The settings are copied to the specified entity or automation group.
  10. When you are finished, click Save.
  11. If you want to run calculations based on the changes you have made, click Run Calculations.

    Note: You cannot run calculations manually on automation groups.

Exporting current and deferred tax accounts to Microsoft Excel

You can use the Current and Deferred Tax editor to export account information from all tabs in the editor to Microsoft Excel, including global and entity override settings.

To export book-tax difference accounts to Microsoft Excel:

  1. In the Tax Provision navigation pane, click Administration.
  2. Expand Accounts.
  3. Click Book-Tax Differences. The Current and Deferred Tax editor opens with the National page in view.
  4. Click Export to Excel. The Export to Excel dialog opens.
  5. Complete the following fields:
    Field

    Notes

    Layout

    		Select one of the following:
    • Expanded view—To export all account symbols fully expanded.
    • Current view—To export only the account symbols visible in the current hierarchy expansion state. For more information on expanding and collapsing the symbol hierarchy, see “Using context menus”.

    Options

    		Select one of the following:
    • Global settings, group overrides, and entity overrides—To export global settings for all accounts, and accounts with entity or automation group override settings applied.
    • Group and entity overrides—To export only accounts with entity or automation group override settings applied.

      Note: For accounts with entity or automation group override settings applied, separate rows appear in the Microsoft Excel worksheet for each entity or automation group that the account settings are overridden for, and for parents of the exported accounts.

    • Global settings—To export global settings for all accounts.
  6. Click Export. The Save As dialog opens.
  7. Navigate to the location where you want the file to be saved.
  8. Type the name of the file you want the account information to be exported to.
  9. Click Save. The file opens in Microsoft Excel.

    Note: The Global/Entity column in the Microsoft Excel worksheet specifies “Global” if the account settings are global or specifies an entity or automation group symbol name if the account settings are an entity or automation group override.
Published:

Working with current and deferred tax accounts

You can use the Current and Deferred Tax editor to manage settings for current and deferred tax accounts. When temporary difference symbols, as well as other symbols used in the Deferred Tax calculation, are added to the system, current and deferred tax accounts need to be updated. For information on setting up the default selections for the Current and Deferred Tax editor, see “Configuring Deferred Tax automation settings” and “Configuring symbol defaults”.

Current and deferred tax calculation settings

Complete the general settings:

Field

Notes

Classification Level

Specify the level at which the system ignores child symbols and classifies each deferred tax account based on the selected parent. The topmost level selected is the level used for the classification.

For example:

  • If you want deferred tax balances to be classified at each temporary difference, select a classification level for each temporary difference account.
  • If you want deferred tax balances to be classified at the total GAAP to STAT temporary difference level, select the classification level at the GAAP to STAT parent temporary difference account. This overrides the classification level setting at the temporary difference account level below the parent level GAAP to STAT temporary difference.

Current/Non-Current

Specify whether the deferred tax account should be classified as current or non-current using one of the following values:

  • Current—Classifies the account as current.
  • Non-Current—Classifies the account as non-current.

The default for this setting is based on the value set for Account Default Setting for Deferred Tax Current/Non-Current in the System Settings editor.

Income/Equity/OCI

This setting displays only if Use Income/Equity/OCI Setting is selected in the System Settings editor. If Use

Income/Equity/OCI Setting is cleared, all added accounts are classified as Income accounts.

This field can be set only for current and deferred tax leaf accounts using the Current and Deferred Tax editor. Use the Book-Tax Difference editor to set permanent or temporary difference accounts, and the Net Income Before Tax editor to set NIBT accounts.

Specify the way the deferred tax account is classified using one of the following values:

  • Income—Classifies the account as an Income account.
  • Equity—Classifies the account as an Equity account.
  • OCI—Classifies the account as an Other Comprehensive Income account.

The default for this setting is based on the value set for Account Default Setting for Deferred Tax Income/ Equity/OCI in the System Settings editor.

Rate Change Treatment

This setting is available only for ASC systems.

This setting applies only if Use Rate Change Treatment Setting is set to TRUE in the System Settings editor.

This field can be set only for deferred tax leaf or temporary difference accounts.

Specify whether rate change for the deferred tax account is treated as income, equity, or OCI using one of the following values:

  • Income—Calculates the rate change as an income rate change.
  • Equity—Calculates the rate change as an equity rate change.
  • OCI—Calculates the rate change as an OCI rate change.

The default for this setting is based on the value set for Account Default Setting for Deferred Tax Rate Change Treatment in the System Settings editor.

Values Entered as Gross

This setting applies only if Global/Entity is set to Global. This field can be set only for deferred tax leaf or temporary difference accounts.

Select this option if values for this deferred tax account will be entered as gross amounts. If you select this option, the system calculates tax-affected values for the account. If you do not select this option, the amount from the Temporary Differences input app is transferred to the Deferred Tax report without applying the tax rate.

The default for this setting is based on the value set for Account Default Setting for Deferred Tax Values Entered as Gross in the System Settings editor.

Include in National Benefit of Region

This setting applies only if Global/Entity is set to Global. This field can be set only for deferred tax leaf or temporary difference accounts, and applies only for entities that calculate a regional provision and are eligible for a regional deduction.

Select this option to include the deferred tax account when calculating National Benefit of Region.

The default for this setting is based on the value set for Account Default Setting for Deferred Tax National Benefit of Region Calculation in the System Settings editor.

Asset Sign

This field can be set only for deferred tax leaf or temporary difference accounts.

Specify the asset sign for the deferred tax account using one of the following values:

  • + classifies a positive amount as an asset and a negative amount as a liability.
  • - classifies a positive amount as a liability and a negative amount as an asset.

The default for this setting is based on the value set for Account Default Setting for Deferred Tax Asset Sign in the System Settings editor.

Multi-Regional Deferred Tax Method

Select the deferred tax method for Multi-Regional Provision from one of the following:

  • Apportionment Factors—Calculates the deferred tax by multiplying the gross values by the apportionment factors entered in the related input app.
  • Tax Rate—Calculates the deferred tax by multiplying the gross values by the tax rate entered in the related input app.
  • Both—Calculates the deferred tax by multiplying the gross values by both the apportionment factors and tax rate entered in the related input apps.

Note

On the National Deferred Tax page, this field applies only to temporary difference accounts.

 

If you are using the Balance Sheet method, fill in the following fields:

Field

Notes

Automate Temporary Difference Ending Balances

This setting displays only if Deferred Tax Automation — Automation Method is Balance Sheet or Deferred Tax Automation — Display Settings is Display Balance Sheet Method Settings in the System Settings editor.

This field can be set only for deferred tax leaf or temporary difference accounts.

Select this option to automate temporary difference ending balances for the deferred tax account. Use this automation to calculate the value in the unexplained difference column to automate the end of year balance in the gross temporary difference rollforward.

%

This field is available only if Automate Temporary Differences Ending Balance is selected.

This field can be set only for deferred tax leaf or temporary difference accounts.

Specify the percentage of the amount to transfer. The amount transferred is the percentage specified by the source amount.

The amount must be a number from -100 through 100 and can have a maximum of two decimal places.

Source Accounts

This field is available only if Automate Temporary Difference Ending Balances is selected.

This field can be set only for deferred tax leaf or temporary difference accounts.

Specify the source accounts for the ending balance. You can select one or more parent or leaf symbols from the chart of accounts.

Valid symbols are those set for Deferred Tax Automation — Valid Source Accounts in the System Settings editor.

Source Reporting Methods

This field is available only if Automate Temporary Difference Ending Balances is selected.

This field can be set only for deferred tax leaf or temporary difference accounts.

Specify the source reporting method for the ending balance. You can select one or more parent or leaf symbols.

Valid symbols are those set for Deferred Tax Automation — Valid Source Reporting Methods in the System Settings editor.

Source Details

This setting displays only if Deferred Tax Automation — Target Detail Symbol is set in the System Settings editor. If Deferred Tax Automation — Target Detail Symbol is cleared, all details are transferred from and to the same symbols.

This field is available only if Automate Temporary Difference Ending Balances is selected. This field can be set only for deferred tax leaf or temporary difference accounts.

Specify the source details for the ending balance. You can select one or more parent or leaf symbols.

Valid symbols are those set for Deferred Tax Automation — Target Detail Symbols in the System Settings editor.

Source Segments

This setting displays only if Deferred Tax Automation — Target Segment Symbol is set in the System Settings editor. If Deferred Tax Automation — Target Segment Symbol is cleared, all details are transferred from and to the same symbols.

This field is available only if Automate Temporary Difference Ending Balances is selected.

This field can be set only for deferred tax leaf or temporary difference accounts.

Specify the source segments for the ending balance. You can select one or more parent or leaf symbols.

Valid symbols are those set for Deferred Tax Automation — Valid Source Segments Symbols in the System Settings editor.

If you are using the Temporary Difference method, fill in the following fields:

Field

Notes

Automate Temporary Difference Ending Balances

This setting displays only if Deferred Tax Automation — Automation Method is Temporary Difference or Deferred Tax Automation — Display Settings is Display Temporary Difference Method Settings in the System Settings editor.

This field can be set only for deferred tax leaf or temporary difference accounts.

Select this option to calculate the value in the current year activity column or the unexplained difference column to automate the end of year balance in the gross temporary difference rollforward.

Automate Accounting Basis

This setting displays only if Deferred Tax Automation — Automation Method is Temporary Difference or Deferred Tax Automation — Display Settings is Display Temporary Difference Method Settings in the System Settings editor.

This field can be set only for deferred tax leaf or temporary difference accounts.

Select this option to automate the accounting basis for the deferred tax account.

% — Accounting Basis

This field is available only if Automate Temporary Differences Ending Balance is selected.

This field can be set only for deferred tax leaf or temporary difference accounts.

Specify the percentage of the amount to transfer. The amount transferred is the percentage specified by the source amount.

The amount must be a number from -100 through 100 and can have a maximum of two decimal places.

Source Accounts – Accounting Basis

This field is available only if Automate Temporary Difference Ending Balances is selected.

This field can be set only for deferred tax leaf or temporary difference accounts.

Specify the source accounts for the ending balance. You can select one or more parent or leaf symbols from the chart of accounts.

Valid symbols are those set for Deferred Tax Automation — Valid Source Accounts in the System Settings editor.

Source Reporting Methods – Accounting Basis

This field is available only if Automate Temporary Difference Ending Balances is selected.

This field can be set only for deferred tax leaf or temporary difference accounts.

Specify the source reporting method for the ending balance. You can select one or more parent or leaf symbols.

Valid symbols are those set for Deferred Tax Automation — Valid Source Reporting Methods in the System Settings editor.

Source Details – Accounting Basis

This setting displays only if Deferred Tax Automation — Target Detail Symbol is set in the System Settings editor. If Deferred Tax Automation — Target Detail Symbol is cleared, all details are transferred from and to the same symbols.

This field is available only if Automate Temporary Difference Ending Balances is selected. This field can be set only for deferred tax leaf or temporary difference accounts.

Specify the source details for the ending balance. You can select one or more parent or leaf symbols.

Valid symbols are those set for Deferred Tax Automation — Target Detail Symbols in the System Settings editor.

Source Segments – Accounting Basis

This setting displays only if Deferred Tax Automation — Target Segment Symbol is set in the System Settings editor. If Deferred Tax Automation — Target Segment Symbol is cleared, all details are transferred from and to the same symbols.

This field is available only if Automate Temporary Difference Ending Balances is selected.

This field can be set only for deferred tax leaf or temporary difference accounts.

Specify the source segments for the ending balance. You can select one or more parent or leaf symbols.

Valid symbols are those set for Deferred Tax Automation — Valid Source Segments Symbols in the System Settings editor.

Automate Tax Basis

This setting is available only if Automate Temporary Difference Ending Balances is selected.

This field can be set only for deferred tax leaf or temporary difference accounts.

Select this option to automate the tax basis for the deferred tax account.

% — Tax Basis

This setting displays only if Automate Tax Basis is selected.

This field can be set only for deferred tax leaf or temporary difference accounts.

Specify the percentage of the amount to transfer. The amount transferred is the percentage specified multiplied by the source amount.

The amount must be from -100 through 100 and can have a maximum of two decimal places.

Source Accounts — Tax Basis

This setting is available only if Automate Tax Basis is selected.

This field can be set only for deferred tax leaf or temporary difference accounts.

Specify the source accounts for the tax basis. You can select one or more parent or leaf symbols.

Valid symbols are those set for Deferred Tax Automation — Valid Source Accounts in the System Settings editor.

Source Reporting Methods — Tax Basis

This setting is available only if Automate Tax Basis is selected.

This field can be set only for deferred tax leaf or temporary difference accounts.

Specify the source elements for the tax basis. You can select one or more parent or leaf symbols.

Valid symbols are those set for Deferred Tax Automation — Valid Source Reporting Methods in the System Settings editor.

Source Details — Tax Basis

This setting displays only if Deferred Tax Automation — Target Detail Symbol is set in the System Settings editor. If Deferred Tax Automation — Target Detail Symbol is cleared, all details are transferred from and to the symbols.

This field is available only if Automate Tax Basis is selected.

This field can be set only for deferred tax leaf or temporary difference accounts.

Specify the source elements for the tax basis. You can select one or more parent or leaf symbols.

Valid symbols are those set for Deferred Tax Automation — Valid Source Reporting Methods in the System Settings editor.

Source Segments — Tax Basis

This setting displays only if Deferred Tax Automation — Target Segment Symbol is set in the System Settings editor. If Deferred Tax Automation — Target Segment Symbol is cleared, all details are transferred from and to the same symbols.

This field is available only if Automate Tax Basis is selected.

This field can be set only for deferred tax leaf or temporary difference accounts.

Specify the source details for the tax basis. You can select one or more parent or leaf symbols.

Valid symbols are those set for Deferred Tax Automation — Valid Source Details Segments in the System Settings editor.

Modifying current and deferred tax default settings

You can modify the default settings for current and deferred tax accounts. These default settings are applied to all entities unless the entity uses an override for that account.

To view and print current and deferred tax account default settings, use the following reports:

  • XNC0500 or XNC1500 — Deferred Tax Setup.rtp
  • XRC0500 or XRC1500 — Deferred Tax Setup.rtp
  • XNC0600 or XNC1600 — Deferred Tax Automation — Global Settings.rtp
  • XNC0601 or XNC1601 — Deferred Tax Automation — Entity Specific Settings
  • XRC0600 or XRC1600 — Deferred Tax Automation — Global Settings.rtp
  • XRC0601 or XRC1601 — Deferred Tax Automation — Entity Specific Settings
  • XNC0700 or XNC1700 — Current Tax Setup.rtp
  • XRC0700 or XRC1700 — Current Tax Setup.rtp

To configure current and deferred tax account default settings:

  1. In the Tax Provision navigation pane, click Administration.
  2. Expand Accounts.
  3. Click Current and Deferred Tax. The Current and Deferred Tax editor opens in the workspace with the National Deferred Tax page in view.
  4. Depending on the type of current or deferred tax account you want to modify, remain on the National Deferred Tax page, and continue to the next step, or click one of the following tabs:
    • National Current Tax
    • Regional Deferred Tax
    • Multi-Regional Deferred Tax (this tab replaces the Regional Deferred Tax tab in systems with Multi-Regional Provision)
    • Regional Current Tax
    • Multi-Regional Current Tax (this tab replaces the Regional Current Tax tab in systems with Multi-Regional Provision)

    Note: The National Current Tax and Regional or Multi-Regional Current Tax pages allow you to change only the Income/Equity/OCI setting for current provision (current tax charge) accounts.

  5. On the editor toolbar, click Entity.
  6. In the Entity box, type DIM2SET.
  7. Click Update. The page displays the accounts and their default settings.
  8. Fill in the calculation settings. See Current and deferred tax calculation settings.
  9. When you are finished, click Save.
  10. If you want to run calculations based on the changes you have made, click Run Calculations.

    Note: You cannot run calculations manually on automation groups.

Overriding deferred tax default settings for an entity or automation group

If you have deferred tax accounts that should use different settings than the defaults, you can override the settings for a specific entity or for an automation group. These settings override the account settings specified for the DIM2SET— Entities Default symbol.

Longview recommends that you use automation groups, when possible, to simplify maintenance.

To view and print the current configuration settings for entity-specific deferred tax accounts, use the following reports:

  1. XNC0601 or XNC1601 — Deferred Tax Automation National — Entity Specific Settings.rtp
  2. XRC0601 or XRC1601 — Deferred Tax Automation Regional — Entity Specific Settings.rtp

To override deferred tax settings for an entity or automation group:

  1. In the Tax Provision navigation pane, click Administration.
  2. Expand Accounts.
  3. Click Current and Deferred Tax. The Current and Deferred Tax editor opens in the workspace with the National page in view.
  4. On the editor toolbar, click Entity.
  5. In the Entity box, type the name of the entity or automation group for which you want to override the deferred tax account settings, or select the entity or automation group in the drop-down list. Alternatively, you can use the symbol selector.

    Note: You can override default settings for leaf entities and automation groups only. If you have already configured current and deferred tax settings for an entity or group, and the new entity or group contains similar settings, you can copy settings from one entity or group to another.

  6. Click Update. The accounts and their default settings update to reflect the selected entity or automation group.
  7. If you want to modify a regional account, click the Regional Deferred Tax Tab. Otherwise, continue to the next step.

    Note: The National Current Tax and Regional Current Tax pages do not allow you to override tax settings for an entity or automation group.

  8. Select Override Current Settings for the account that you want to specify override settings for.

    Note: You can use the Current Override column to determine whether an account already has an override for the selected entity. Overrides can be an automation group or the selected entity.

  9. Update the calculation settings. See Current and deferred tax calculation settings.
  10. When you are finished, click Save.
  11. If you want to run calculations based on the changes you have made, click Run Calculations.

    Note: You cannot run calculations manually on automation groups.

Copying account settings for deferred tax accounts

If you have previously configured deferred tax settings for a specific account, and you have another account that should use similar settings, you can copy the settings from that account.

Note: This process copies only override settings and not other settings such as Multi-Regional Deferred Tax Method.

To copy account settings:

  1. In the Tax Provision navigation pane, click Administration.
  2. Expand Accounts.
  3. Click Current and Deferred Tax. The Current and Deferred Tax editor opens with the National page in view.
  4. Depending on the type of account you want to copy settings to continue to the next step, or click the Regional Deferred Tax tab.

    Note: Copy Account Settings functionality is available for the National Deferred Tax and Regional Deferred Tax pages only.

  5. In the Entity box, type the name of the entity or automation group that contains the account that you want to copy settings to, or select the entity or automation group in the drop-down list. Alternatively, you can use the symbol selector.

    Note: If you want to copy account default settings, select DIM2SET as the entity.

  1. Select the account to copy settings to and click Copy Account Settings. The Copy Account Settings dialog opens.

    Note: You must select a leaf account.

  2. Type the name of the account to copy settings from or select the account in the drop-down list. Alternatively, you can use the symbol selector.

    Note: You must select a leaf account.

  3. Click Copy. The account settings are copied to the specified account.
  4. When you are finished, click Save.
  5. If you want to run calculations based on the changes you have made, click Run Calculations.

    Note: You cannot run calculations manually on automation groups.

Copying entity settings for deferred tax accounts

If you have previously configured deferred tax settings for a specific entity or automation group, and you have another entity or automation group that should use similar settings, you can copy the settings from that entity or automation group.

When you copy settings from one entity or group to another, the settings are copied for all deferred tax accounts, including:

  1. National deferred tax accounts
  2. Regional deferred tax accounts

To copy settings from one entity or automation group to another:

  1. In the Tax Provision navigation pane, click Administration.
  2. Expand Accounts.
  3. Click Current and Deferred Tax. The Current and Deferred Tax editor opens in the workspace with the National page in view.
  4. On the editor toolbar, click Entity.
  5. In the Entity box, type the name of the entity or automation group to copy settings to, or select the entity or automation group in the drop-down list. Alternatively, you can use the symbol selector.
  6. Click Update. The account settings update to reflect the selected entity or automation group.
  7. Click Copy Entity Settings. The Copy Settings dialog opens.
  8. Type the name of the entity or automation group to copy settings from or select the entity or automation group in the drop-down list. Alternatively, you can use the symbol selector.
  9. Click Copy. The settings are copied to the specified entity or automation group.
  10. When you are finished, click Save.
  11. If you want to run calculations based on the changes you have made, click Run Calculations.

    Note: You cannot run calculations manually on automation groups.

Exporting current and deferred tax accounts to Microsoft Excel

You can use the Current and Deferred Tax editor to export account information from all tabs in the editor to Microsoft Excel, including global and entity override settings.

To export book-tax difference accounts to Microsoft Excel:

  1. In the Tax Provision navigation pane, click Administration.
  2. Expand Accounts.
  3. Click Book-Tax Differences. The Current and Deferred Tax editor opens with the National page in view.
  4. Click Export to Excel. The Export to Excel dialog opens.
  5. Complete the following fields:
    Field

    Notes

    Layout

    		Select one of the following:
    • Expanded view—To export all account symbols fully expanded.
    • Current view—To export only the account symbols visible in the current hierarchy expansion state. For more information on expanding and collapsing the symbol hierarchy, see “Using context menus”.

    Options

    		Select one of the following:
    • Global settings, group overrides, and entity overrides—To export global settings for all accounts, and accounts with entity or automation group override settings applied.
    • Group and entity overrides—To export only accounts with entity or automation group override settings applied.

      Note: For accounts with entity or automation group override settings applied, separate rows appear in the Microsoft Excel worksheet for each entity or automation group that the account settings are overridden for, and for parents of the exported accounts.

    • Global settings—To export global settings for all accounts.
  6. Click Export. The Save As dialog opens.
  7. Navigate to the location where you want the file to be saved.
  8. Type the name of the file you want the account information to be exported to.
  9. Click Save. The file opens in Microsoft Excel.

    Note: The Global/Entity column in the Microsoft Excel worksheet specifies “Global” if the account settings are global or specifies an entity or automation group symbol name if the account settings are an entity or automation group override.
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