Maintaining Tax Provision time periods

Your Tax Provision system includes the TIMEPER dimension, which keeps descriptions of time period symbols up to date automatically during period-end rollovers. For more information on rollover, see “Running the Tax Provision rollover”.

Understanding Tax Provision time period conventions

Tax Provision time periods are set up in standard format. The time period dimension accommodates the following:

• Actuals—Actuals are based on a monthly or quarterly period and hold the financial activity and performance of your organization for that particular time period. Actuals are the true snapshot of the financial activity of your organization.
• Return—Return periods are annual and hold the return to provision/prior year adjustment values for your organization.

Note: You should not add any symbols manually to any of the time period hierarchies in the Timeper dimension. Tax Provision creates the time period symbols required by the system during system rollovers and assigns them to the appropriate parent in the hierarchy.

The time period symbols are created using standard Longview naming conventions. Symbols are created and data is stored for monthly, quarterly, and yearly totals, as well as year-to-date totals.

Time periods follow the naming conventions in the following table:

Actuals data is loaded to the year-to-date symbols (YTD). The Longview Math Server calculates the change between monthly YTD data.

For example:

A1403 = A1403YTD – A1402YTD

Understanding Tax Provision time period hierarchies

Tax Provision contains the following multiple time period hierarchies:

• main time period hierarchies (Actual Columns and Return Time Periods)
• alternate time period hierarchies (ActualYTD, CYTAXPER, PYTAXPER, RTNTAXPER, and IPTAXPER)
• other time period hierarchies (used to store data not specific to a time period)

Actual Time Periods (ACTUAL) hierarchy

The ACTUAL hierarchy contains seven years of data representing the current year as well as six years of historical data.

For example, a monthly system currently in December 2014 contains the following symbols for one year:

Actual Year-to-date Time Periods (ActualYTD) hierarchy

The ActualYTD hierarchy contains seven years of data representing the current year as well as six years of historical data.

For example, a monthly system currently in December 2014 contains the following symbols for one year:

ActualYTD - Actual YTD Time Periods

Tax Process Current Period (CYTAXPER) hierarchy

The CYTAXPER hierarchy contains the current period and scenarios active for Tax Provision. The following is an example of the hierarchy, assuming the system is in December 2014:

CYTAXPER - Tax Process Current Period

A1412YTD - Dec 14 YTD

Tax Process Prior Year End Period (PYTAXPER) hierarchy

The PYTAXPER hierarchy contains the prior year end period. The following is an example of the hierarchy, assuming the system is in December 2014:

PYTAXPER - Tax Process Prior Year End Period

A1312YTD - Dec 13 YTD

Return (RETURN) hierarchy

The RETURN hierarchy contains seven return symbols representing the current return period and six return periods of historical data. The Tax Provision system in 2014, for example, contains return time periods for 2008, 2009, 2010, 2011, 2012, 2013, and 2014. For example, a system currently in December 2014 contains the following symbols for one year:

RETURN - Return Time Periods

RYr2013 - Return 2013

Tax Process Current Return Period (RTNTAXPER) hierarchy

The RTNTAXPER hierarchy contains the current return period for Tax Provision. The following is an example of the hierarchy, assuming the system is in December 2014:

RTNTAXPER - Tax Process Current Return Period

RYR2013 - Return 2013

Tax Process Current Interim Period (IPTAXPER) hierarchy

The IPTAXPER hierarchy contains the current period if the current period is an interim period or will not have any children when the current period is not an interim period. When in period 12, at year-end, there are no symbols assigned to IPTAXPER as this is not an interim period. When in periods 1 through 11, the current period is assigned to IPTTAXPER. The following is an example of the hierarchy, assuming the system is in December 2014 and is monthly:

IPTAXPER - Tax Process Current Interim Period (Leaf if Current Period is Not Interim)

The following is an example of the hierarchy, assuming the system is in January 2014 and is monthly.

IPTAXPER - Tax Process Current Interim Period (Leaf if Current Period is Not Interim)

A1401YTD - Jan 14 YTD

Pillar Two Process Current Period (CYP2PER) hierarchy

The CYP2PER hierarchy contains the current period and any active scenarios for Pillar Two. The following is an example of the hierarchy, assuming the system is in December 2014:

CYP2PER – Pillar Two Process Current Period

A1412YTD – Dec 14 YTD

Note: The current period for Pillar Two can differ from the current period for Tax Provision.

Pillar Two Process Return Period (RTNP2PER) hierarchy

The RTNP2PER hierarchy contains the current return period for pillar two. The following is an example of the hierarchy, assuming the system is in December 2014:

RTNTAXPER – Pillar Two Process Return Period

RYR2013 - Return 2013

Working with Tax Provision time period descriptions

Tax Provision lets you update and review time period descriptions. If the fiscal year of your company is different than the calendar year, update the descriptions of the periods to match the fiscal year.

For example, if your fiscal year is April to March, change the descriptions of the periods starting with Period 1 as April ending with Period 12 as March.

Updating Tax Provision time period descriptions

Use the XCCC005 - Time Period Descriptions input app to define the time period descriptions used in symbols and attributes in your Tax Provision system.

This input app contains the following symbols in the ACCOUNTS dimension (across):

PeriodDescE—Period Description - English This column represents the English time period description. For example, for Period 4, “Apr”.

PeriodDescF—Period Description - Alternate This column represents the alternate language time period description. For example, for Period 4, “Avr”.

PeriodEndE—Period End Date - English This column represents the end date of the time period in English. For example, for Period 4, “April 30”.

PeriodEndF—Period End Date - Alternate This column represents the end date of the time period in the alternate language. For example, for Period 4, “le 30 avril”.

To update time period descriptions:

1. In the Tax Provision navigation pane, click Administration.
2. Expand System.
3. Click XCCC005 - Time Period Descriptions. The input app opens in the workspace.
4. Enter the appropriate description for each time period.

Working with scenarios

Tax Provision lets you work with scenarios in order to model your data in theoretical current periods. Using a scenario time period allows you to work in a current period that is an alternate to the current period specified by the rollover.

Creating scenarios

You can use the Scenario Maintenance_app to create new scenarios.

To create scenarios:

1. In the Tax Provision navigation pane, click Administration.
2. Expand Time Periods.
3. Click Scenario Maintenance. The app opens in the workspace.
4. Click New.

   Note: If this is the first time using the Scenario Maintenance_app for your system, you are automatically directed to create a new scenario.

5. Select a month and type a description for the new scenario.
6. When you are finished, click Create. The new scenario appears in the list of scenarios.
7. Do one of the following:
   • To modify the scenario you just created, proceed to “Maintaining scenarios”.
   • To exit the app, click Close.

   Field	Description
   Scenario	Select the scenario to modify. To create a new Scenario period, see “Creating scenarios”
   Description	Modify the description of the scenario.
   Associated Prior Year Period	Select the prior year period for which to associate with the scenario.
   Associated Return Period	Select the return period for which to associate with the scenario.
   Active for Tax Provision	If your system includes Tax Provision this option will appear and allows you to indicate if the scenario will be active for tax provision. Selecting this option allows scenario initialization to populate this scenario with Tax Provision data and adds the scenario to the Tax Process Current Period hierarchy.
   Active for Pillar Two	If your system includes pillar two this option will appear and allows you to indicate if the scenario will be active for pillar two. Selecting this option allows scenario initialization to populate this scenario with Pillar Two data and settings and adds the scenario to the Pillar Two Process Current Period hierarchy.
   Calculate Interim	Select this option to include the scenario in the interim calculations.

8. Click Apply. The scenario is updated accordingly.
9. Do one of the following:
   • To modify another scenario, repeat step 4 to step 5 for each scenario you want to modify.
   • To close the app, click Close.

Maintaining scenarios

You can use the Scenario Maintenance_app to modify the description, status, associated prior year period, and associated return period of a scenario. You can also specify whether to include the scenario in interim calculations.

To maintain scenarios:

1. In the Tax Provision navigation pane, click Administration.
2. Expand Time Periods.
3. Click Scenario Maintenance. The app opens in the workspace.
4. Complete the following fields:

   Field	Description
   Scenario	Select the scenario to modify. To create a new Scenario period, see Creating scenarios.
   Description	Modify the description of the scenario.
   Associated Prior Year Period	Select the prior year period for which to associate with the scenario.
   Associated Return Period	Select the return period for which to associate with the scenario.
   Active for Tax Provision	If your system includes Tax Provision this option will appear and allows you to indicate if the scenario will be active for tax provision. Selecting this option allows scenario initialization to populate this scenario with Tax Provision data and adds the scenario to the Tax Process Current Period hierarchy.
   Active for Pillar Two	If your system includes pillar two this option will appear and allows you to indicate if the scenario will be active for pillar two. Selecting this option allows scenario initialization to populate this scenario with Pillar Two data and settings and adds the scenario to the Pillar Two Process Current Period hierarchy.
   Calculate Interim	Select this option to include the scenario in the interim calculations.

Initializing scenarios

You can use the Scenario Inititalization_app to initialize the period-specific information and data for a scenario. You cannot initialize scenarios until you have created them. For more information on creating scenarios, see “Creating scenarios”.

Note: Before you initialize a scenario, use the Rollover and Scenario Setup editor to define relevant data intersections for the purpose of scenario initialization. For more information, see “Setting up rollover processes”.

To initialize scenarios:

1. In the Tax Provision navigation pane, click Administration.
2. Expand Time Periods.
3. Click Scenario Initialization. The app opens in the workspace.
4. Complete the following fields:

   Field	Description
   Source Period	Select the source period from which to copy the data for the scenario.
   Scenario	Specify the scenario to receive the data from the source period.
   Populate Using	Specify the method to use to populate the scenario: Scenario Initialization - The scenario is populated using the initialization parameters as defined by the Scenario Initialization column in the Rollover and Scenario Setup editor. Period End Rollover - The scenario is populated using the initialization parameters as defined by the Period End Rollover column in the Rollover and Scenario Setup editor.

5. Click OK. A confirmation dialog appears.
6. Do one of the following:
   • To initialize the scenario, click Initialize.
   • To return to the main app, click Cancel.

   Note: If your system uses different period-specific settings for this scenario, use the Period-Specific Settings_app to modify the settings before you run calculations. For more information, see “Modifying period-specific settings”.