Working with net income before tax accounts

You can use the Net Income Before Tax editor to manage your net income before tax (NIBT) accounts. For information on configuring the system settings for NIBT accounts, see “Configuring Net Income Before Tax automation settings”.

NIBT calculation settings

Adding NIBT accounts

You can add and configure NIBT accounts that are specific to your company using the Net Income Before Tax editor.

To add a NIBT account:

1. In the Tax Provision navigation pane, click Administration.
2. Expand Accounts.
3. Click Net Income Before Tax. The Net Income Before Tax editor opens, displaying the accounts and their default settings.

   Note: You can add NIBT accounts only with Default Settings (the DIM2SET— Entities Default symbol) selected for Entity on the editor toolbar. After you add an NIBT account, you can configure it for a specific entity or automation group, using an override. For more information, see “Overriding NIBT account default settings for an entity or automation group”.

4. Select the appropriate parent for the NIBT account and click NIBT Account. A new row appears.

   Note: If you want to select a leaf symbol as the parent for the NIBT account, you must select the parent symbol manually in step 6. Otherwise, the parent of your selected leaf symbol is automatically set as the parent for the NIBT account.

5. Complete the following fields:

   Field	Notes
   Account	Type a name for the account. The account name can have a maximum of 31 characters.
   Description	Type a description for the account. The description can have a maximum of 100 characters.
   Sort order	Specify a numeric value from 1 and up representing the order of the symbol with respect to its parent. By default, the sort order for added symbols is 10 higher than the last child of the same parent symbol. If you specify a value of 0, the symbol appears at the bottom of the list.
   Income/Equity/ OCI	This field 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. Specify the Income/Equity/OCI classification for the account 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.

6. For Parent, type the name of the parent symbol for the NIBT account, or select a parent in the drop-down list. Alternatively, you can use the symbol selector.

   Caution: If you select a leaf symbol as the parent for the account, settings and data are lost for the leaf symbol when it is changed to a parent symbol. The NIBT—GAAP Net Income/(Loss) Before Tax symbol cannot be selected as a parent symbol.

7. If you want to automatically transfer data to the current provision (current tax charge) for this NIBT account, select Automate NIBT Amounts. The remaining fields become available.

   Caution: If you select a leaf symbol as the parent for the account, settings and data are lost for the leaf symbol when it is changed to a parent symbol. The NIBT—GAAP Net Income/(Loss) Before Tax symbol cannot be selected as a parent symbol. Use this automation to calculate values in the current provision (current tax charge) for NIBT accounts. The amounts may be calculated to the current year, equity, and OCI columns, depending on whether Use Income/Equity/OCI Setting is selected or cleared in the System Settings editor and the Target Elements setting for the NIBT account.
   
   Amounts automatically transferred into the current year column are also reported in the Effective Tax Rate reports. This automation can be performed for functional currency or functional and reporting currency net income before tax values included in the general ledger.
   
   If you select Automate NIBT Amounts for the default settings or any other entity, the NIBT account is set to read-only for all entities.

8. Select the calculation options. See NIBT Calculation Settings.
9. Click OK. The NIBT account appears in the hierarchy.
10. When you are finished, click Save.
11. If you want to run calculations based on the changes you have made, click Run Calculations.

Modifying NIBT account default settings

You can modify the default settings (settings for the DIM2SET—Entities Default symbol) for existing NIBT accounts. These default settings are applied to all entities unless the entity uses an override for that account.

Note: Default settings can be modified for leaf accounts only.

To view and print the current configuration settings for NIBT accounts, use the XCCC300 — NIBT Setup and Mapping.rtp report.

To modify NIBT account default settings:

1. In the Tax Provision navigation pane, click Administration.
2. Expand Accounts.
3. Click Net Income Before Tax. The Net Income Before Tax editor opens, displaying the accounts and their default settings.
4. Do one of the following:
   • To edit the account name, description, sort order, Income/Equity/OCI classification, or parent, select the NIBT account, and click Properties. The fields become available. Continue to the next step.
   • To edit other settings, continue to step 7.
5. Edit the following fields as necessary:

   Field	Notes
   Account	Type a name for the account. The account name can have a maximum of 31 characters. Note: The NIBT—GAAP Net Income/(Loss) Before Tax symbol name cannot be modified.
   Description	Type a new description for the account. The description can have a maximum of 100 characters.
   Sort order	Specify a numeric value from 1 and up representing the order of the symbol with respect to its parent. By default, the sort order for added symbols is 10 higher than the last child of the same parent symbol. If you specify a value of 0, the symbol appears at the bottom of the list.
   Income/Equity/ OCI	This field 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. Specify the Income/Equity/OCI classification for the account 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. If you modify Income/Equity/OCI for a NIBT account that has a calculation method set for Actuals Calculation Method, you must also update the Target Elements setting (for both default settings and any entity override settings) to a valid value for the new Income/Equity/OCI classification. 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.

6. For Parent, type the name of the new parent symbol for the NIBT account, or select a parent in the drop-down list. Alternatively, you can use the symbol selector.

   Caution: If you select a leaf symbol as the parent for the account, settings and data are lost for the leaf symbol when it is changed to a parent symbol. The NIBT—GAAP Net Income/(Loss) Before Tax symbol cannot be selected as a parent symbol.

7. Edit the calculation settings. See NIBT Calculation Settings.
8. Click OK. A message opens indicating that the NIBT account has been modified successfully.
9. When you are finished, click Save.
10. If you want to run calculations based on the changes you have made, click Run Calculations.

Overriding NIBT account default settings for an entity or automation group

If you have NIBT 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. Entity-specific overrides take priority over automation group overrides.

Note: You can override default settings for leaf accounts and automation groups only. Longview recommends that you use automation group overrides, when possible, to simplify maintenance. For information on creating automation groups, see “Adding automation groups”.

To view the current configuration settings for NIBT account overrides, use the XCCC301 — NIBT Setup and Mapping — Entity Specific Settings.rtp report.

To override NIBT account settings for an entity or automation group:

1. In the Tax Provision navigation pane, click Administration.
2. Expand Accounts.
3. Click Net Income Before Tax. The Net Income Before Tax editor opens, displaying the accounts and their default settings.
4. On the editor toolbar, click Entity.
5. In the Entity box, type the name of the entity or automation group for which to override the NIBT 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 NIBT account settings for an entity or automation group, and the new entity or automation group should use similar settings, you can copy settings from one entity or automation group to another. For more information, see “Copying entity settings for NIBT accounts”.

6. Click Update. The account settings update to reflect the selected entity or automation group.
7. Select Override Current Settings for the NIBT account that you want to specify override settings for. The Automate NIBT Amounts column becomes available.

   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.

8. Edit the calculation settings. See NIBT 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.

Copying account settings for NIBT accounts

If a NIBT account should have similar settings as an existing account, you can copy settings to the NIBT account.

To copy NIBT account settings:

1. In the Tax Provision navigation pane, click Administration.
2. Expand Accounts.
3. Click Net Income Before Tax. The Net Income Before Tax editor opens, displaying the accounts and their default settings.
4. In the Entity box, type the name of the entity that contains the NIBT account that you want to copy settings to, or select the entity 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.

5. 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.

6. 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.

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

Copying entity settings for NIBT accounts

If you have previously configured the override 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 override settings from the previously configured entity or automation group.

When you copy override settings from one entity or automation group to another, the settings are copied for all NIBT accounts.

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

1. In the Tax Provision navigation pane, click Administration.
2. Expand Accounts.
3. Click Net Income Before Tax. The Net Income Before Tax editor opens, displaying the accounts and their default settings.
4. On the editor toolbar, click Entity.
5. In the Entity box, type the name of the entity to copy settings to, or select the entity in the drop-down list. Alternatively, you can use the symbol selector.

   Note: You must select a leaf entity or an automation group.

6. Click Update. The account settings update to reflect the selected entity or automation group.
7. Click Copy Entity Settings. The Copy Entity Settings dialog opens.
8. Type the name of the entity to copy settings from or select the entity in the drop-down list. Alternatively, you can use the symbol selector.

   Note: You must select a leaf entity or an automation group.

9. Click Copy. The settings for all accounts 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.

Exporting NIBT accounts to Microsoft Excel

You can use the Net Income Before Tax editor to export information from all accounts in the editor to Microsoft Excel, including global and entity override settings.

To export NIBT accounts to Microsoft Excel:

1. In the Tax Provision navigation pane, click Administration.
2. Expand Accounts.
3. Click Net Income Before Tax. The Net Income Before Tax editor opens, displaying the accounts and their default settings.
4. Click Export to Excel. The Export to Excel dialog opens.
5. Complete the following:

   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”.
   Description	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.