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Each permanent difference entry needs to be designated as a P&L or Equity entry:
| • | In the data entry page for Permanent Differences, there is a drop-down menu to select P for P&L and E for Equity. |
| • | A P&L (P) entry results in a current tax provision expense offset in the payable account. The result impacts the overall effective tax rate. |
| • | An Equity (E) entry results in a current tax provision expense offset in the payable account, as well as an equity contra expense that is offset in an equity account. This does not impact the overall effective tax rate. |
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