Running The Tax Multi-Regional Provision Rollover

At the close of each period, the system needs to be moved from the current time period into the next. This process is called a rollover. The rollover is run at period end and at year end.

Note: If your company has purchased Longview Tax products other than Tax Provision such as Global Transparency, the rollover process copies the relevant blocks of data for these products during the rollover.

Understanding the period end rollover process

At each period end, the Longview Tax System Administrator must run a process to roll over the system to the next period. The process sets all necessary time-related system attribute settings for the new period. If your system is set to monthly, there are 11 period end rollovers performed in a year. If your system is set to quarterly, there are three period end rollovers. Before running a rollover, the Longview Tax System Administrator must perform a backup of the database by running an Export of the system. Once the Export is complete, you can then run the rollover process to roll the system to the next period using the Tax Rollover tool.

For more information on the number of time periods in your system, see Configuring system switches. For more information on running a rollover, see Running the tax rollover process (period end and year end).

The Tax Provision Period End rollover process performs the following steps:

Note: The details for the data movements are available for review in the Rollover and Scenario Setup editor applying the Period End Rollover column.

1. Updates time period alternate hierarchies.
2. Updates all of the system attributes to the period.
3. Copies tax rates to the next period.
4. Copies scheduling tax rates to the next period.
5. Copies consolidated tax rates to the next period.
6. Copies override tax rates to the next period.
7. Copies the beginning of year foreign exchange rate to the next period.
8. Copies scheduling system settings to the next period for entities.
9. Copies scheduling system settings to the next period for regions (ASC only).
10. Copies partnership system settings to the next period.
11. Copies the temporary differences beginning of year balances to the next period.
12. Copies the recognised temporary differences beginning of year balances to the next period (IAS systems only).
13. Copies the temporary differences – scheduling amounts to the next period.
14. Copies the temporary differences – interim scheduling to the next period when rolling into periods 2 to 11.
15. Copies the deferred tax rollforward beginning of year balances to the next period.
16. Copies the opening deferred tax not recognisable amounts to the next period (IAS systems only).
17. Copies the tax account rollforward beginning of year balances to the next period.
18. Copies the prior period plus current period acquisitions to the next period’s prior period acquisitions.
19. Copies the Canadian CCA Schedule beginning of year balances, percents, rates, periods, and years to the next period.
20. Copies the Canadian CEC Schedule beginning of year balances, percents, and periods to the next period.
21. Copies the Canadian CCA Restricted Pools beginning of year balances, and rates to the next period.
22. Copies the Canadian CCA Unrestricted Pools beginning of year balances, and rates to the next period.
23. Copies the Loss and Credit Expiration Schedule data to the next period.
24. Copies the Loss and Credit Utilization Schedule data to the next period. This part of the rollover process is for IAS systems only.
25. Copies the return to provision data from the current provision to the next period.
26. Copies the return to provision data from the deferred provision to the next period.
27. Copies the apportionment rates to the next period.
28. Copies the regional tax rates to the next period.
29. Copies the regional return to provision data from the current provision to the next period.
30. Copies the regional return to provision data from the deferred provision to the next period.
31. Copies the temporary differences beginning of year balances to the next period.
32. Copies the recognised temporary differences beginning of year balances to the next period (IAS systems only).
33. Copies the regional temporary differences – scheduling amounts to the next period.

Reviewing changes to time period hierarchies during period end rollover

The following time period hierarchies are updated during the period end rollover:

Understanding the year end rollover process

At each year end, the Longview Tax System Administrator must run a process to roll over the system to the next year. The process creates new time period symbols, deletes specific historical time period data and symbols, and sets all necessary timerelated system attribute settings for the new year. There is one year end rollover performed each year.

Before running a rollover, the Longview Tax System Administrator must perform a backup of the database by running an Export of the system. Once the Export is complete, the Longview Tax System Administrator can then run the rollover process to roll the system to the next year using the Tax Rollover tool. For more information on running a rollover, see Running the tax rollover process (period end and year end).

The Tax Provision Year End rollover process performs the following steps:

Note: The details for the data movements are available for review in the Rollover and Scenario Setup editor applying both the Year End Rollover and Return Rollover column selections.

1. Creates time period symbols for next year for the actuals timeframe (Months, Quarters, Year, YTD Months, YTD Year, and Return time periods).
2. Deletes the seventh prior year time period symbols for actuals timeframe (Months, Quarters, Year, YTD Months, YTD Year, and Return time periods).
3. Updates time period alternate hierarchies.
4. Updates all of the system attributes to the next year for all time periods.
5. Rolls tax rates to the first period of the next year, into the first period of the next year’s prior rates, and into next year’s beginning of year rates as well.
6. Rolls tax rates to the return time period.
7. Rolls scheduling Tax Rates so that the Year 2 rates are copied to next year’s Year 1 rates, Year 3 rates are copied to next year’s Year 2 rates, Year 4 rates are copied to next year’s Year 3 rates, and Year 5 rates are copied to next year’s Year 4 rates.
8. Rolls consolidated tax rates to the first period of the next year.
9. Rolls override tax rates to the first period of the next year, and into next year’s beginning of year rates.
10. Rolls end of year foreign exchange rates to become the beginning of year rates for the first period of the next year.
11. Copies average foreign exchange rates to the return period.
12. Initializes scheduling system settings in the first period of the next year by copying from the current year.
13. Initializes partnership system settings in the first period of the next year by copying from the current year.
14. Rolls balance sheet to the opening period of the next year.
15. Rolls Chart of Accounts data to the return time period.
16. Rolls current provision to the return to provision in the return time period.
17. Rolls current provision to the prior year return in the return time period.
18. Rolls end of year balances from the temporary differences of the current year to the beginning of year balances of the first period of the next year.
19. Rolls recognised end of year balances from the temporary differences for the current year to the recognised beginning of year balances of the first period for the next year (IAS systems only).
20. Rolls temporary difference - scheduling amounts so that the Year 2 amounts are copied to next year’s Year 1 amounts, Year 3 amounts are copied to next year’s Year 2 amounts, Year 4 amounts are copied to next year’s Year 3 amounts, and Year 5 amounts are copied to next year’s Year 4 amounts.

    Note: When copying from year 5 to year 4 the total of the calculated and adjusted amounts is copied to the adjusted leaf symbol, so that no data is copied to a calculated leaf symbol in year 4.

21. Rolls end of year balances and tax basis balance sheet adjustments from the temporary difference of the current year to the tax basis balance sheet in the return time period.
22. Rolls the end of year balances from the national and regional deferred tax rollforward of the current year to the beginning of year balances of the first period of the next year.
23. Rolls the end of year balances from the deferred tax not recognised of the current year to the beginning of year balances of the first period of the next year. This part of the rollover process is for IAS systems only.
24. Rolls the end of year balance in tax account rollforward in the current year to the period of the next year, not including income statement accounts.
25. Rolls the end of year balances from the Canadian CCA Schedule of the current year to the beginning of year balances of the first period of the next year, and the percents, rates, periods, and years are copied to the first period of the next year.
26. Rolls the end of year balances from the Canadian CEC Schedule of the current year to the beginning of year balances of the first period of the next year, and the percents, and periods are copied to the first period of the next year.
27. Rolls the end of year balances from the Canadian CCA Restricted Pools of the current year to the beginning of year balances of the first period of the next year, and the rates are copied to the first period of the next year.
28. Rolls the end of year balances from the Canadian CCA Unrestricted Pools of the current year to the beginning of year balances of the first period of the next year, and the rates are copied to the first period of the next year.
29. Sets the Loss and Credit Expiration Schedule Years of Expiry for the new time period to start at the next year for ten years of expiry. The expiration amounts and year of origin are copied so that Expire Year 2 is copied to Expire Year 1, Expire Year 3 is copied to Expire Year 2, Expire Year 4 is copied to Expire Year 3, up to Expire Year 10 copied to Expire Year 9. Expire Beyond is copied to Expire Beyond, Expire Never is copied to Expire Never, and Undescribed Amount is copied to Undescribed Amount.
30. Rolls the Loss and Credit Utilization Schedule amounts from the end of the current year to the first period of the next year, for Expected Utilization (LT – after 12 Months) and Expected Amounts which is not utilized. Expected Utilization (ST – within 12 Months) is not be copied. This part of the rollover process is for IAS systems only.
31. Copies the apportionment rates to the next period.
32. Rolls regional tax rates to the first period of the next year, into the first period of the next year’s prior rates, and into next year’s beginning of year rates as well.
33. Rolls regional tax rates to the first period of the next year, into the first period of the next year’s prior rates, and into next year’s beginning of year rates as well.
34. Rolls regional override tax rates to the first period of the next year, and into next year’s beginning of year rates.
35. Copies regional group and nexus settings to the first period of next year.
36. Rolls regional end of year balances from the temporary differences of the current year to the beginning of year balances of the first period of the next year.
37. Rolls regional temporary difference - scheduling amounts so that the Year 2 amounts are copied to next year’s Year 1 amounts, Year 3 amounts are copied to next year’s Year 2 amounts, Year 4 amounts are copied to next year’s Year 3 amounts, and Year 5 amounts are copied to next year’s Year 4 amounts.
38. Rolls regional scheduling Tax Rates so that the Year 2 rates are copied to next year’s Year 1 rates, Year 3 rates are copied to next year’s Year 2 rates, Year 4 rates are copied to next year’s Year 3 rates, and Year 5 rates are copied to next year’s Year 4 rates.

Reviewing changes to time period hierarchies during year end rollover

The following time period hierarchies are updated during the year end rollover:

Setting up rollover processes

Before you use the Rollover tool to trigger the rollover process, use the Rollover and Scenario Setup editor to define data intersections and the associated criteria for the purpose of period-end rollovers, year-end rollovers, and scenario initializations.

The Rollover and Scenario Setup editor is located in the Tax Provision navigation pane under Administration > System.

Preparing for a rollover

Before you perform a rollover in Longview Tax, make sure the following conditions are met:

• Ensure that all data intersections and the associated criteria have been defined for the period end or year end and return rollovers.
• Inform all users that a rollover is imminent and make sure they have time to exit the system, then ensure no users are in the system.
• Ensure all data submissions are completed prior to beginning the rollover.
• Ensure there are no outstanding locks.
• Create a backup of the Longview production database and copy to a safe place by running an Export through Longview Server Manager. For more information, see the Longview Server Manager Guide.

Running the tax rollover process (period end and year end)

You can use the Rollover tool to run the tax rollover process for the end of the current period. The rollover procedure in the Rollover tool is the same for period end and year end rollovers.

The rollover type in the Rollover tool is determined by the following:

• If the current period is 12 in the ASCurrentPeriod attribute, the rollover is a year end rollover.
• If the current period is any other period in the ASCurrentPeriod attribute, the rollover is a period end rollover.

  Caution: Be sure to have a complete and recent backup of your application prior to running the rollover process.

To perform a rollover

1. In the Tax Provision navigation pane, click Administration.
2. Expand Rollover.
3. Click Rollover. The Rollover tool opens in the workspace.If there are any locks in the system, a warning displays. Locks can prevent the rollover from running successfully. Click View Data Locks to open the Data Locks tool and delete any locks that may cause a conflict. For more information, see Monitoring locks.
4. If there are any user submissions in progress, a warning displays. You must wait until all user submissions are complete before you start the rollover process. Click View User Submissions to open the User Submissions tool and monitor any user submissions in progress. For more information, see Monitoring user submissions.
5. Click Start Rollover. The progress page appears.

   When the rollover is complete, the summary page appears.

   Note: If the rollover fails, you must restore the system by running an Import of your backup through Longview Server Manager. For more information, see the Longview Server Manager Guide.

6. If you want to view the rollover log file, click View Log File. The log file is saved to the following location:

   C:\Users\<userID>\Documents\Longview\Rollover\

7. After the rollover is complete, you must complete the following tasks:
   1. Run an enterprise restatement in Longview Server Manager. For more information, see the Longview Server Manager Guide.
   2. Run the following calculations from the Tax Calculations tool:
      • Return Tax Calculations
      • Current Provision/Current Tax Charge Calculation
      • Deferred Tax Calculation
      • Deferred Tax Classification

      For more information, see Running calculations.

8. When you are finished, click Reset to reset the Rollover tool and allow you to run another rollover process.