Working With Book-Tax Difference Accounts

You can use the Book-Tax Differences editor to manage your permanent and temporary difference accounts. For information on configuring the system settings for book-tax difference accounts, see “Configuring Current Tax automation settings”.

Book-Tax difference calculation settings

Use this automation to calculate values in the current provision for permanent and temporary difference accounts, and in the gross temporary difference rollforward for temporary difference 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 difference account. Amounts automated into the current year column for temporary differences provide for an offset between the current provision and deferred provision with no impact to the ETR.

Adding book-Tax difference accounts

You can add and configure book-tax difference accounts that are specific to your company using the Book-Tax Differences editor.

When you add a book-tax difference account, you are adding the parent account for two automatically created symbols: the adjustment symbol and the calculated symbol. When users submit data to a book-tax difference account, they must input data for the adjustment symbol.

To add a book-tax difference account:

1. In the Tax Provision navigation pane, click Administration.
2. Expand Accounts.
3. Click Book-Tax Differences. The Book-Tax Differences editor opens with the GPerm — GAAP to STAT Permanent Differences page in view, displaying the accounts and their default settings.

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

4. Depending on the type of book-tax difference account you want to add, remain on the GPerm — GAAP to STAT Permanent Differences page and continue to the next step, or select one of the following categories from the Category list on the page toolbar:
   • GTemp — GAAP to STAT Temporary Differences
   • StPerm — STAT to Tax Permanent Differences
   • StTemp — STAT to Tax Temporary Differences
   • RegPerm — Regional Permanent Differences
   • RegTemp — Regional Temporary Differences
   • GEqPerm — GAAP to STAT Equity Permanent Differences
   • StEqPerm — STAT to Tax Equity Permanent Differences
   • RegEqPerm — Regional Equity Permanent Differences
   • GOCIPerm — GAAP to STAT OCI Permanent Differences
   • StOCIPerm — STAT to Tax OCI Permanent Differences
   • RegOCIPerm — Regional OCI Permanent Differences
5. Select the row under the appropriate parent for the difference account, and do one of the following:
   • To add a difference account, click Difference.
   • To add a subtotal account, click Subtotal.

   Note: If you want to select a leaf symbol as the parent for the difference account, you must select the parent symbol manually in step 7. Otherwise, the parent of your selected leaf symbol is automatically set as the parent for the difference account.

6. Complete the following fields:

   1. Account: Type a name for the difference account. The account name can have a maximum of 30 characters. The maximum length for Longview symbol names is 31, but for difference symbols, one character is reserved for the names of the Calculated and Adjustment system symbols, which are automatically created.

   2. Description: Type a description for the difference account. The description can have a maximum of 87 characters. The maximum length for Longview symbol descriptions is 100; however, for difference symbols, 13 characters are reserved for the descriptions of the Calculated and Adjustment system symbols, which are automatically created.

   3. 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.

   4. Income/Equity/OCI: This field only displays when Use Income/Equity/OCI Setting is selected in the System Settings editor. 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. 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.
7. For Parent, type the name of the parent symbol for the difference 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.

8. Do one of the following:
   • If you are adding a difference account, continue to the next step.
   • If you are adding a subtotal account, continue to step 11.
9. Select the calculation options. See Book-tax difference calculation settings.
10. Click OK. A message opens indicating that the account has been modified successfully.
11. When you are finished, click Save.

Modifying book-tax difference account default settings

You can modify the default settings for existing book-tax difference accounts. These default settings are applied to all entities unless the entity uses an override for that account. To view and print the settings for global book-tax difference accounts, use the XCC0004 or XCC1004 - Book-Tax Differences - Global Settings.rtp report.

To modify book-tax difference account default settings:

1. In the Tax Provision navigation pane, click Administration.
2. Expand Accounts, and then expand Book-Tax Differences.
3. Click Book-Tax Differences. The Book-Tax Differences editor opens with the GPerm - GAAP to STAT Permanent Differences page in view displaying the accounts and their default settings.
4. Depending on the type of book-tax difference account you want to modify, remain on the GPerm - GAAP to STAT Permanent Differences page and continue to the next step, or select one of the following categories from the Category list on the page toolbar:
   • GTemp - GAAP to STAT Temporary Differences
   • StPerm - STAT to Tax Permanent Differences
   • StTemp - STAT to Tax Temporary Differences
   • RegPerm - Regional Permanent Differences
     • Available in Regional Modifications in Multi-Regional Provision systems
   • RegTemp - Regional Temporary Differences
     • Available in Regional Modifications in Multi-Regional Provision systems
   • GEqPerm - GAAP to STAT Equity Permanent Differences
   • StEqPerm - STAT to Tax Equity Permanent Differences
   • RegEqPerm - Regional Equity Permanent Differences
   • Available in Regional Modifications in Multi-Regional Provision systems
   • Available in Regional Modifications in Multi-Regional Provision systems
   • GOCIPerm - GAAP to STAT OCI Permanent Differences
   • StOCIPerm - STAT to Tax OCI Permanent Differences
   • RegOCIPerm - Regional OCI Permanent Differences
     • Available in Regional Modifications in Multi-Regional Provision systems
5. Do one of the following:
   • To edit the account name, description, sort order, or parent, select the difference account, and click Properties. The fields become available. Continue to the next step.
   • To edit other settings, continue to step 8.
6. Edit the following fields as necessary:

   1. Account: Rename the account as required. The account name can have a maximum of 30 characters. The maximum length for Longview symbol names is 31, but for difference symbols, one character is reserved for the names of the Calculated and Adjustment system symbols, which are automatically created.

   2. Description: Type a new description for the difference account, as required. The description can have a maximum of 87 characters. The maximum length for Longview symbol descriptions is 100; however, for difference symbols, 13 characters are reserved for the descriptions of the Calculated and Adjustment system symbols, which are automatically created.

   3. 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.

   4. Income/Equity/OCI: This field only displays when Use Income/Equity/OCI Setting is selected in the System Settings editor. The Longview 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. If you modify Income/Equity/OCI for a difference 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. 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.
7. For Parent, type the name of the parent symbol for the difference account, or select a parent in the drop-down list. Alternatively, you can use the symbol selector. For more information, see Using the Symbol Selector.

   Note: 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.

8. Edit the calculation options. See Book-tax difference calculation settings.
9. Click OK. A message opens indicating that the account has been modified successfully.
10. When you are finished, click Save.

Overriding book-Tax difference settings for an entity or automation group

If you have entities that should use different book-tax difference account automation settings than the defaults or those assigned to the automation group, you can override the settings for that specific entity. Likewise, if you are using automation groups, you can override the default settings for the automation group. Default settings are those specified for the DIM2SET — Entities Default symbol. Entity-specific overrides take priority over automation group overrides.

To view and print the current configuration settings for entity-specific book-tax difference accounts, use the XCC0005 or XCC1005 — Book-Tax Differences — Entity Specific Settings.rtp report.

1. In the Tax Provision navigation pane, click Administration.
2. Expand Accounts.
3. Click Book-Tax Differences. The Book-Tax Differences editor opens with the GPerm — GAAP to STAT Permanent Differences 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 to override the 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 book-tax difference settings for an entity or automation group, and the new entity or automation group should use similar settings, you can copy settings from one to another.

6. Click Update. The account settings update to reflect the selected entity or automation group.
7. Depending on the type of book-tax difference account you want to override, remain on the GPerm — GAAP to STAT Permanent Differences page and continue to the next step, or select one of the following categories from the Category list on the page toolbar:
   • GTemp — GAAP to STAT Temporary Differences
   • StPerm — STAT to Tax Permanent Differences
   • StTemp — STAT to Tax Temporary Differences
   • RegPerm — Regional Permanent Differences
   • RegTemp — Regional Temporary Differences
   • GEqPerm — GAAP to STAT Equity Permanent Differences
   • StEqPerm — STAT to Tax Equity Permanent Differences
   • RegEqPerm — Regional Equity Permanent Differences
   • GOCIPerm — GAAP to STAT OCI Permanent Differences
   • StOCIPerm — STAT to Tax OCI Permanent Differences
   • RegOCIPerm — Regional OCI Permanent Differences
8. Select Override Current Settings for the difference account for which to specify override settings.

   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. Select the calculation options. See Book-tax difference calculation settings.

   Note: Depending on whether Current Tax Automation — Allow Automation of Current Tax and Current Tax Automation — Display Automation Settings are selected or cleared in the System Settings editor, automation fields may not display.

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 for automation groups.

Copying account settings for book-Tax difference accounts

If a book-tax difference account should have similar settings as an existing account, you can copy settings to the book-tax difference account.

To copy account settings:

1. In the Tax Provision navigation pane, click Administration.

2. Expand Accounts.

3. Click Book-Tax Differences. The Book-Tax Differences editor opens with the GPerm — GAAP to STAT Permanent Differences page in view.

4. Depending on the type of book-tax difference account you want to copy settings to remain on the GPerm — GAAP to STAT Permanent Differences page and continue to the next step, or select one of the following categories from the Category list on the page toolbar:

   • GTemp — GAAP to STAT Temporary Differences
   • StPerm — STAT to Tax Permanent Differences
   • StTemp — QSTAT to Tax Temporary Differences
   • RegPerm — Regional Permanent Differences
   • RegTemp — Regional Temporary Differences
   • GEqPerm — GAAP to STAT Equity Permanent Differences
   • StEqPerm — STAT to Tax Equity Permanent Differences
   • RegEqPerm — Regional Equity Permanent Differences
   • GOCIPerm — GAAP to STAT OCI Permanent Differences
   • StOCIPerm — STAT to Tax OCI Permanent Differences
   • RegOCIPerm — Regional OCI Permanent Differences

5. In the Entity box, type the name of the entity that contains the 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.

6. 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. You can copy settings from any account on any page of the Book-Tax Differences editor.

7. 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.

8. Click Copy. The settings are copied to the specified account.

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 entity settings for book-Tax difference 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 group.

When you copy override settings from one entity or automation group to another, the settings are copied for all difference accounts in all categories, including:

• GPerm — GAAP to STAT Permanent Differences
• GTemp — GAAP to STAT Temporary Differences
• StPerm — STAT to Tax Permanent Differences
• StTemp — QSTAT to Tax Temporary Differences
• RegPerm — Regional Permanent Differences
• RegTemp — Regional Temporary Differences
• GEqPerm — GAAP to STAT Equity Permanent Differences
• StEqPerm — STAT to Tax Equity Permanent Differences
• RegEqPerm — Regional Equity Permanent Differences
• GOCIPerm — GAAP to STAT OCI Permanent Differences
• StOCIPerm — STAT to Tax OCI Permanent Differences
• RegOCIPerm — Regional OCI Permanent Differences

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 Book-Tax Differences. The Book-Tax Differences editor opens with the GPerm — GAAP to STAT Permanent Differences 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.

   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 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.

   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.

    Note: You cannot run calculations manually on automation groups.

Exporting book-Tax difference accounts to Microsoft Excel

You can use the Book-Tax Differences 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 Book-Tax Differences editor opens with the GPerm — GAAP to STAT Permanent Differences page in view.

4. Click Export to Excel. The Export to Excel dialog opens.

5. Complete the following fields:

   1. Layout: 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.

      • 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”.

   2. 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.