Permanent Differences - Tax Basis

Permanent difference information is managed in the Permanent Differences screen under Data Input > Federal in the Provision and Estimated Payments datasets and under Data Input > Forecast/Actual > Federal in an Interim dataset. There are two types of Permanent Differences: Equity Adjustments and P&L Adjustments. Select the appropriate type to achieve the desired provision effect.

To import information to the Permanent Differences screen, complete the appropriate fields on the #UPD# Unit Perm Diffs sheet in the Import Numbers template. For more information on importing, refer to the Importing Templates documentation.

 

Screen Entry Fields

 

The data entry screen has a grid that allows you to select a cell for a component and use the arrows on your keyboard to scroll through a list or use the drop-down to make your selection. You can use the tab key to move between the fields much like an excel worksheet.

To add a new adjustment with "Tags":

1.Click on any cell to add a New Entry.
2.Select Code-Description.
3.Select Tag.
4.Select Adj Type.
5.Select Amount.
6.Select Note.
7.Click Save.

 

2014.0 permanent differences with tags

 

To create a new adjustment with "Classes" and Sub-Classes":

1.Click on any cell to add a New Entry.
2.Select Code-Description.
3.Select Class.
4.Select Subclass.
5.Select Adj Type.
6.Select Amount.
7.Select Note.
8.Click Save.

 

2014.0 permanent differences with classes

 

Adjustment Columns

•Columns are sorted by clicking on the column headers.
•You can drag and drop the columns to create a new view of the grid.
•"Drag a column header here to group by that column" allows you to group by the headers. You just drag each header(s) to that area and the data is sorted, accordingly.
•To "Hide" a column, click on a column header, right mouse click and select the header name. To restore the column header, right mouse click on the column header and select the column header. Select "Reset all saved settings" restores the column headers to the "Default" settings.

2014.0 permanent differences adjustment columns

 

Attmnts

"Attmnts" allow you to supplement the adjustment with detail.

•To add "Attmnts", double click Attachments and/or Active Workpapers.

 

Data Source

"Data Source" allows you to view the "Data Source History."

 

Code - Description

The code and description are established by an Administrator for the permanent difference.

 

Adj Type

•Type P (P&L Adjustment) results in a current tax provision expense offset in the payable account. The result does impact the overall effective tax rate.
•Type E (Equity Adjustment) 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 to the overall effective tax rate.

 

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.

 

Amount

Positive amounts increase and negative amounts reduce the taxable income. Enter amounts in local currency. They are translated using the unit's weighted average FX rate to reporting currency.

 

Note

You can type notes to supplement the adjustment. You can access a history of the "Notes" within "Data Source History."

 

Delete Adjustments

To delete multiple adjustments:

•Hold down the Ctrl key and select the Delete key.

Note: To create adjustments using the same permanent difference code, you must make additional entries using different tag letters.