Completing the post-provision process

The following table outlines the post-provision process for Tax Provision:

Reviewing calculation proof reports

Longview provides preconfigured calculation proof reports, which you can use for internal or external audit purposes.

Separate calculation proof reports provide information on automated amounts for:

• book-tax differences. For more information, see Reviewing the Book-Tax Automation Proof.
• net income before tax accounts. For more information, see Reviewing the NIBT Automation Proof.
• automated effective tax rates. For more information, see Reviewing the Interim ETR Proof.

Reviewing the Book-Tax Automation Proof

The Book-Tax Automation Proof report is organized in calculation blocks for specific automated calculations (divided by grey rows), with numeric validation information in the down dimension and relevant settings in the across dimension.

You can review the following numeric validation information for the current and prior periods:

• the source amounts that impact the automated book-tax difference amounts
• the calculation proof amounts
• the current database automated amounts (highlighted in yellow)

  Note: If the Actuals Calculation Method is Change in Balance, the current database automated amount is in the Variance to Prior Period column.

• the variance between the calculation proof amount and the current database amount

You can review the following information on settings in the across dimension:

• the Actuals Calculation Method, which can be one of the following:
  • Change in Balance
  • Year-to-Date Balance
  • Custom
  • No Automation
  • Invalid Settings

  For more information on these settings, see the Longview Tax Administrator’s Guide.

• the automation parameters that impact the calculation method (for the current database amount only)

You can also use Analyze functionality to analyze source amounts for calculated accounts.

For more information, see “Analyzing data for automation source information”.

To review the Book-Tax Automation Proof:

1. In the Tax Provision navigation pane, click Reports.
2. Expand Calculation Proofs, and then click Book-Tax Automation Proof.lvapp. The Book-Tax Difference Automation Proof symbol selection page opens.
3. Use the symbol selector to select the appropriate account and entity combination to proof.

   For more information, see “Searching using the Symbol Selector”.

   Note: For systems with large numbers of book-tax differences, Longview recommends narrowing your symbol selection to avoid impacting performance.

4. Click OK. The Book-Tax Difference Automation Proof opens in the workspace.
5. For each book-tax difference, review the proof amount and the current database amounts.
6. Review the Variance for these possible values:
   • 0.0000—Database amounts match the calculation proof.
   • N/A—There is a custom calculation method used for this automated calculation or there are invalid settings that are preventing calculation from occuring.
   • Non-zero number—Database amounts do not match the calculation proof. Use the Events Status tool to make sure that all Events are complete. If Events are complete, and this value is still red, use the Tax Calculations tool to run the Current Tax Automation for the affected entities.

Reviewing the NIBT Automation Proof

The NIBT Automation Proof report is organized in calculation blocks for specific automated calculations (divided by grey rows), with numeric validation information in the down dimension and relevant settings in the across dimension.

You can review the following numeric validation information in the down dimension:

• the source amounts that impact the automated net income before tax amounts
• the calculation proof amounts
• the current database automated amounts
• the variance between the calculation proof amount and the current database amount

You can review the following information on settings in the across dimension:

• the Actuals Calculation Method, which can be one of the following:
  • Change in Balance
  • Year-to-Date Balance
  • Custom
  • No Automation
  • Invalid Settings

  For more information on these settings, see the Longview Tax Administrator’s Guide.

• the automation parameters that impact the calculation method (for the current database amount only)

You can also use Analyze functionality to analyze source amounts for calculated accounts.

For more information, see “Analyzing data for automation source information”.

To review the NIBT Automation Proof:

1. In the Tax Provision navigation pane, click Reports.
2. Expand Calculation Proofs, and then click NIBT Automation Proof.lvapp. The NIBT Automation Proof symbol selection page opens.
3. Use the symbol selector to select the appropriate account and entity combination to proof. For more information, see “Searching using the Symbol Selector”. The Currency selection dialog opens.
4. Type the currency name or select the currency in the hierarchy. Alternatively, you can use the symbol selector. For more information, see “Searching using the Symbol Selector”.
5. Click OK. The NIBT Automation Proof opens in the workspace.
6. For each net income before tax account, review the proof amount and the current database amounts.
7. Review the Variance for these possible values:
   • 0.0000—Database amounts match the calculation proof.
   • N/A—There is a custom calculation method used for this automated calculation or there are invalid settings that are preventing calculation from occuring.
   • Non-zero number—Database amounts do not match the calculation proof. Use the Events Status tool to make sure that all Events are complete. If Events are complete, and this value is still red, use the Tax Calculations tool to run the NIBT Automation for the affected entities.

Reviewing the Interim ETR Proof

You can use the Interim ETR Proof app to review information on the following:

• the source amounts that impact the calculated interim effective tax rate
• entity-specific settings that relate to the method in which the interim effective tax rate is calculated
• filtered amounts, which appear only for the entities that are included in calculation of the sub-consolidated or consolidated estimated annualized effective tax rate
• the calculation proof, which is equal to the filtered Total Provision Current and Deferred divided by the filtered GAAP Net Income/ (Loss) Before Tax Adjusted
• the current database amount for the interim effective tax rate
• the variance between the calculation proof amount and the current database amount

To review the Interim ETR Proof:

1. In the Tax Provision navigation pane, click Reports.
2. Expand Calculation Proofs, and then click Interim ETR Proof.lvapp.
3. Depending on your system configuration, do one of the following:
   • If the system uses the Consolidated setting for Interim ETR, the Interim ETR Proof Entities selection dialog opens. Continue to step 4.
   • If the system is not using the Consolidated setting for Interim ETR, continue to step 5.
4. Type the name of the entity for which to proof the Interim ETR calculation, or select an entity in the drop-down list. Alternatively, you can use the symbol selector.

   For more information, see “Searching using the Symbol Selector”.

5. Click OK. The Interim ETR Proof app opens in the workspace with the Current National page in view.
6. Depending on the Interim ETR calculation that you want to proof for the selected entity, remain on the Current National page and continue to the next step, or select one of the following tabs:
   • Deferred National
   • Current Regional
   • Deferred Regional

   The labels for these tabs depend on the configuration for the National and Regional level labels. For example, the tabs for your system could say Current Federal.

7. In the SOURCE AMOUNTS section, review the values for the Total Provision Current and Deferred and the GAAP Net Income/(Loss) Before Tax Adjusted from the NF0802/NF1802 Forecast Tax Expense report.
8. In the ENTITY-SPECIFIC SETTINGS section, review the following settings for each entity:

   Setting	Notes
   Calculate Regional Provision	This setting applies only to the Current Regional and Deferred Regional pages and indicates whether the Calculate Regional Provision setting is selected or cleared for the entity in the Entities editor.
   Calculate Interim	Indicates whether the Calculate Interim setting is selected or cleared for this entity in the Entities editor.
   Entity Level for Interim ETR	Displays the setting specified for the Entity Level for Interim ETR setting in the Entities editor. Legal Entity Sub-Consolidated Consolidated Defined by Entity This setting displays only if the system setting for Entity Level for Interim ETR is Defined by Entity.
   Sub-Consolidation Entity for Interim ETR	Displays the entity specified for the Sub-Consolidation Entity for Interim ETR setting in the Entities editor, if applicable.
   Include in National Current/Deferred Interim ETR	Indicates whether the entity is included in the calculation of the national current interim or national deferred interim effective tax rate as specified in the Include in National Current Interim ETR and Include in National Deferred Interim ETR settings in the Entities editor.
   Include in Regional Current/Deferred Interim ETR	Indicates whether the entity is included in the calculation of the regional current or deferred interim effective tax rate as specified in the Include in Regional Current Interim ETR and Include in Regional Deferred Interim ETR settings in the Entities editor.

9. In the FILTERED AMOUNTS section, review the values for the Total Provision Current and Deferred and the GAAP Net Income/(Loss) Before Tax Adjusted from the NF0802/NF1802 Forecast Tax Expense report for entities that are included in the calculation of the sub-consolidated or consolidated estimated annualized effective tax rate.
10. In the CALCULATION PROOF and DATABASE AMOUNTS sections, review the proof amount and the current database amount.
11. Review the Variance for these possible values:
    • 0.0000—Database amounts match the calculation proof.
    • N/A—The Sub-Consolidation Entity for Interim ETR setting for the entity is different than the selected sub-consolidation entity; therefore, the effective tax rate calculated at the sub-consolidation entity level does not apply.
    • Non-zero number—Database amounts do not match the calculation proof. Use the Events Status tool to make sure that all Events are complete. If Events are complete, and this value is still red, use the Tax Calculations tool to run the Interim Current vs Deferred Rate Calculation for the affected entities.

Completing the rollover

The rollover process is performed by the Longview Tax Administrator and is used to move the system from one period to the next. This process should be run after you have finalized the period in which you are working. After the rollover is complete, you can not make any changes to data for the prior period. If necessary, Tax Provision provides the ability to modify beginning of period balances via adjustments.