Tax Adjustments

Tax adjustment information is managed in the Tax Adjustments screen under Data Input > Federal in the Provision and Estimated Payments datasets under Data Input > Forecast/Actual > Federal in  an Interim dataset. Tax adjustments can be thought of as a post-tax permanent difference.

There are two types of Tax Adjustments, depending on the code, Cash and Non-Cash. Non-Cash Tax Adjustments have a code that begins with NC_. The cash provision is the amount of current tax liability that is expected to be represented on the tax return. The non-cash provision is any current taxes that should be accrued for prior years or for amounts that are not represented on the tax return. The Cash and Non-Cash are segregated on separate lines of the Tax Provision report.

To import information to the Tax Adjustments screen, complete the appropriate fields on the #UTA# Unit Tax Adjs sheet in the Import Numbers template. For more information on importing, refer to the Importing Templates documentation.

Note: If you wish to adjust the same after tax adjustment more than once, you must make additional entries using different tag letters or classes.

Screen Entry Fields

Code - Description

Type

Select E-Equity Adjustment or P- P&L Adjustment from the drop-down list.

Tag

The tag letter identifies each line entered in the originating source.

Class

The class identifies each line entered in the originating source.

Subclass

The subclass identifies each line description entered in the originating source. You can select Next Value as the subclass and the application generates the next "Code" number for the selected Code, Type and Class.

Adjustment

Positive amounts increase and negative amounts reduce taxable income. Amounts should be entered in local currency. They are translated using the weighted average FX rate to reporting currency.