AMT Local Currency Approach

AMT Local Currency Approach (Not Recommended) enables the AMT functionality to calculate using Local Currency amounts. This approach should only be activated if all units have the same local currency.

To activate the AMT Local Currency Approach functionality, an Administrator needs to add the following system parameter in Manage Configurations.

In Administration > System > Manage Configurations select the Advanced Functionality Section then, Alternative Minimum Tax > Designate AMT Functionality Approach, select Yes.

The Local Currency approach has more limited functionality than the Reporting Currency approach:

•	The AMT calculation is computed in Local Currency, not Reporting Currency. All units in a filing group must have the same currency for the calculation to be logical.

•	Net Operating Losses for both regular tax and AMT are not considered separately in the calculation. Consider using the AMT Reporting Currency approach, because it considers both regular and AMT NOLs in the calculation.

•	AMT Automation posts the generated AMT liability as activity on an after tax temporary difference with the code AMT_SYS. It does not take into consideration the calculation going into a recapture position.

Note: The Local Currency approach can be overridden on each dataset by adding the dataset parameter name USE_OLD_AMTESTIMATOR and the parameter value of 1.