Automation

You can set up the "Automation" policies by using the "Other" option. Automation is available for Provision, Estimated Payments and Interim datasets.

To set up the automation for a "Provision" dataset:

1.In "Data Input", select Federal and then Unit Details.
2.Click Other.
3.In the Automation tab, select Valuation Allowance Rates to activate the "Valuation Allowance Automation."
4.Select NOL to activate the "NOL Automation."
5.Select AMT to activate the "AMT Automation."

 

To set up the automation for an "Interim" dataset:

1.In "Data Input", select Actual, Federal and then Interim Unit Details.
2.Click Other.
3.In the Automation tab, select Valuation Allowance Rates to activate the "Valuation Allowance Automation."
4.Select NOL to activate the "NOL Automation."
5.Select AMT to activate the "AMT Automation."

 

•Valuation Allowance automation policies are managed in the Provision and Interim datasets.
•NOL automation polices are managed in the Provision, Estimated Payments, and Interim datasets.
•AMT automation policies are managed in the Provision and Estimated Payments datasets.

Based on these automation policies, the application automatically calculates and posts balances which directly impact the provision calculations. The automation policies do have limitations. For example, if a unit has a different unit as its filing unit, it is assigned that filing unit's automation policies.

To import the Automation policies, complete the cells in the #U# Unit worksheet in the "Import Numbers" template.

 

Screen Entry Fields

Valuation Allowance Rates

•Any line item starting with the VA_prefix is considered when calculating the balance available to be used for a valuation allowance. Line items, such as VA_2006, are taken into account when calculating.
•The automation posts two amounts in the Temporary Difference, NOL Temporary Difference, and After Tax Temporary Difference screens with codes that begin with VA_SYS_. One is the current amount and the other is the non-current amount. Both amounts have the source tag of A.
•There are system codes that must exist for the automation to post.
•There are three approaches to the Valuation Allowance Automation - Separate, Aggregated, and Aggregated Post-Tax.

 

NOL Automation

•The automation posts an amount as an NOL Temporary Difference with the code NOL_SYS and the source tag of A. The NOL automation posts a reclass that creates the NOL Temporary difference when the unit has a taxable loss or draw down an available NOL Temporary Difference when the unit has taxable income.
•Selections made in the NOL Allowance rate and Base NOL Allowance impact the amount of the reclass to NOL that is posted.
•The NOL Allowance Rate is the percent of taxable income/loss that should be considered when computing the NOL that should be reclassed for the specified unit.
•The Base NOL Allowance (e.g., §382 limitation) limits the amount of NOL that is considered. If there is no Base NOL Allowance, the default value of zero should remain in the field. The Base NOL Allowance sets the minimum amount to be considered and does not set a ceiling.

 

AMT Automation

•The automation computes the Alternative Minimum Tax and posts an amount for the additional amount of tax liability that should be added to the Regular Tax.
•There are two approaches to the Alternative Minimum Tax - Reporting Currency (New) and Local Currency (Original).
•AMT Adjustments (pre- and/or post-tax), as well as the AMT Tax rate that should be used in calculations, should be entered for both approaches.
•When the Reporting Currency basis is selected, there is the option to enter the AMT Net Operating Loss Carryover amount.