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Completing the national actual tax process

The Tax Provision national actual process allows you to prepare a full tax provision based on year-to-date numbers.

Before you begin your annual tax provision process, Tax Provision automates the population of pre-tax income from the income statement of the entity. The Tax Administrator imports the chart of accounts data, which includes pre-tax income by legal entity. The chart of accounts data is used to transfer the entity’s pre-tax income to the Current Provision input app and report in the source currency. Tax Provision then uses the imported chart of accounts data to automate the permanent and temporary differences by legal entity.

The following table outlines the ASC 740 National Actual tax process in Tax Provision:

Note: If an owner of a partnership is locked for input, the partnership calculations will fail if changes are submitted to the partnership entity. You can correct this by running the failed partnership calculations for the partnership entity from the Tax Calculations interface once the lock on the owner is released.

Step

Input apps/reports to use...

  1. Complete the pre-provision process.

For more information, see

  1. For Canadian entities, update and review asset depreciation.

  1. Update and review the current provision and non-provision equity items.

  1. Input adjustments in the reporting currency for any translation differences that may exist between Tax Provision and the general ledger or consolidation system.

  1. Update acquisition information.

  1. Update the gross temporary difference rollforward activity and review the related reports.

For the Temporary Difference method:

For the Balance Sheet method:

  1. Review the Deferred Tax Rollforward reports.

  1. Complete the regional provision process if applicable.

See

  1. Review the effective tax rate and Total Provision National Actual reports.

  1. Review the reconciliation reports.

  1. Update and review the Tax Account Rollforward.

  1. Input top-side reporting currency adjustments for current provision and total provision (if applicable).

  1. Input top-side reporting currency adjustments for tax account rollforward (if applicable).

  1. Update and review carryover loss and credit expiration.

  1. Coordinate with your Administrator to perform a rollover of the system. For more information on the rollover process, see “Completing the rollover”.
Published:

Completing the national actual tax process

The Tax Provision national actual process allows you to prepare a full tax provision based on year-to-date numbers.

Before you begin your annual tax provision process, Tax Provision automates the population of pre-tax income from the income statement of the entity. The Tax Administrator imports the chart of accounts data, which includes pre-tax income by legal entity. The chart of accounts data is used to transfer the entity’s pre-tax income to the Current Provision input app and report in the source currency. Tax Provision then uses the imported chart of accounts data to automate the permanent and temporary differences by legal entity.

The following table outlines the ASC 740 National Actual tax process in Tax Provision:

Note: If an owner of a partnership is locked for input, the partnership calculations will fail if changes are submitted to the partnership entity. You can correct this by running the failed partnership calculations for the partnership entity from the Tax Calculations interface once the lock on the owner is released.

Step

Input apps/reports to use...

  1. Complete the pre-provision process.

For more information, see

  1. For Canadian entities, update and review asset depreciation.

  1. Update and review the current provision and non-provision equity items.

  1. Input adjustments in the reporting currency for any translation differences that may exist between Tax Provision and the general ledger or consolidation system.

  1. Update acquisition information.

  1. Update the gross temporary difference rollforward activity and review the related reports.

For the Temporary Difference method:

For the Balance Sheet method:

  1. Review the Deferred Tax Rollforward reports.

  1. Complete the regional provision process if applicable.

See

  1. Review the effective tax rate and Total Provision National Actual reports.

  1. Review the reconciliation reports.

  1. Update and review the Tax Account Rollforward.

  1. Input top-side reporting currency adjustments for current provision and total provision (if applicable).

  1. Input top-side reporting currency adjustments for tax account rollforward (if applicable).

  1. Update and review carryover loss and credit expiration.

  1. Coordinate with your Administrator to perform a rollover of the system. For more information on the rollover process, see “Completing the rollover”.
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