Working With Discrete Item Accounts In Provision

You can use the Discrete Items editor to create discrete item accounts and edit default or override properties of existing accounts. These properties control the automation calculation of the discrete items within the Interim ETR calculation.

Discrete item accounts are present in the following individual hierarchies:

• NatIPCurT – Total Current Tax
• NatIPDfdT –Total Deferred Tax
• RegIPCurT – Regional Total Current Tax
• RegIPDfdT – Regional Total Deferred Tax

Managing discrete item accounts

Discrete Items allows you to:

• Create and update discrete item accounts from within the Discrete Items — Default Settings tab
• Add and update discrete item override settings from within the Discrete Items — Group Override and Entity Override tabs.

To manage accounts:

1. Select the account structure to manage.
2. In the Discrete Items table, the list of accounts selected is displayed.

   Note: Discrete Items can contain up to three tabs — Default Settings, Group Override and Entity Override, depending on the setup of your system.

Managing Default Settings

From the Default Settings tab, click Add to add a new account. Accounts are not added to the database until you click Apply.

Note: You can add a new account that has similar settings by selecting an existing row and clicking duplicate.

For each account fill in the following fields:

• Account: Type a name for the difference account. The account name can have a maximum of 31 characters.

• Description: Type a description for the difference account. The description can have a maximum of 100 characters.

• Parent: Select or enter the name of the parent to assign the account to. Discrete item accounts must be placed under one of the following parent structures::

  • NatIPCurT_ASC/IAS

  • NatIPDfdT_ ASC/IAS

  • RegIPCurT_ASC/IAS

  • RegIPDfdT_ ASC/IAS

  Note: The list only contains parents that already exist in the database. You can enter the name for the parent to make an account being added into a parent.

• 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.

• Automate: Check this option if this account will be automated. Automated accounts will have data automatically transferred to the Interim ETR.

• Automation Method: Select the Automation Method to define how an automated account will be calculated. This is not required to be specified for parent and non-automated accounts. Valid options are:

  • Year-To-Date Balance (uses the balance in GrsCY)

  • Full Year Forecast (uses the forecast balance GrsCY + GrsCYIP)

  • Prorate (Prorates the full year forecast based on the current period i.e., multiplies by 3 / 12 if the current period is 3)

• %: Specify the percentage of the amount to transfer. The amount transferred is the percentage specified multiplied by the source amount. The percentage must be a number from -100 through 100.

• Source Accounts: Specify the source accounts for the Discrete Item account. You can select one or more parent or leaf symbols. This is not required to be specified for parent and non-automated accounts.

Managing Override Settings

From either the Group Override or Entity Override tab, click Add to add new entity override settings. Override settings not added to the database until you click Apply.

Note:

• The Group Override tab is used to override discrete item settings at an automation group level. This tab will only appear if you have automation groups set up in your system.

• The Entities Override tab is used to override discrete item settings at an entity level. This tab will only appear if you have leaf entities under the structures TENTITIES or PShip.

For each account fill in the following fields:

• Account: Select the account for which you would like to set override settings.

  Note: Once an account is selected, it will default the rest of the fields to the values set in the Default Settings or, if applicable, settings within the automation group.

• Automation Group/Entity: If on the Group Override tab, select the automation group you would like to set override settings for. If on the Entity Override tab, select the entity you would like to set override settings for.

• Automate: Check this option if this account will be automated. Automated accounts will have data automatically transferred to the current provision.

• Automation Method: Select the Automation Method to define how an automated account will be calculated. This is not required to be specified for parent and non-automated accounts. Valid options are:

  • Year-To-Date Balance

  • Full Year Forecast

  • Prorate

• %: Specify the percentage of the amount to transfer. The amount transferred is the percentage specified multiplied by the source amount. The percentage must be a number from -100 through 100.

• Source Accounts: Specify the source accounts for the Discrete Item account. You can select one or more parent or leaf symbols. This is not required to be specified for parent and non-automated accounts.

Modifying an account

You can change the properties of an existing account:

1. Modify the description by editing the value in the ‘Description’ cell (default settings only)
2. Switch the parent of the account by selecting or entering a new parent name (default settings only).

   Note: The parent specified must either already exist in the database or be a new account that will be added before the account being modified.

3. Change the order the account appears under its parent by modifying the sort order value (default settings only).
4. Change the automation group the settings apply to by changing the automation group selection (group overrides only)
5. Change the entity the settings apply to by changing the entity selection (entity overrides only)
6. Change the automation setting on the account by checking or unchecking the automate option.
7. Change the automation method of account for by selecting a different value.
8. Change the % to be used in the automation calculation by modifying the % value.
9. Change the source account(s) by selecting different source account symbols.

No changes are applied until you click Apply.

Applying changes

To apply changes to the discrete item accounts, click Apply.

For new row:

1. Each new account will be added under the selected parent symbol.

   Note: New rows where the account matches an existing account in the database, will modify the existing account.

For modified accounts:

1. Any description changes will be applied.
2. If the parent account is changed, the account will be reassigned to the new parent with the specified sort order.
3. Any changes to the sort order (same parent account) will be applied.
4. Any changes to the automation group will be applied
5. Any changes to the override entity will be applied
6. Any changes to the ‘Automate’ setting will be applied.
7. Any changes to the ‘Automation Method’ setting will be applied.

Results:

1. All actions performed are presented at the end of processing with:
   • Each row identified by its row number.
   • The action performed or the reason any error occurred.
2. Any valid changes, not cancelled, are applied.

Refreshing the accounts

Click Refresh to refresh the list of accounts.

Click Selections to change the selected discrete item accounts and refresh the list of accounts.

In either case, if there are any unapplied changes, you will be prompted to apply or discard any changes that have not yet been applied.

• Choose Apply Changes to apply any changes made, then refresh the list of accounts. If there are any errors the refresh will not be performed.
• Choose Discard Changes to discard any changes made, then refresh the list of accounts.
• Click Cancel to return to the app without refreshing the list of accounts.