State Permanent Differences

State permanent difference information is managed in the State Perm Diffs screen under Data Input > State > Perm Diffs in the Provision and Estimated Payments datasets and under Data Input > Forecast/Actual > State in an Interim dataset.

 

There are two types of permanent differences: Equity Adjustments and P&L Adjustments. You can select the appropriate type to achieve the desired provision effect. Enter permanent differences that are applicable for state, but not for federal purposes.

 

To import information to the State Permanent Differences screen, complete the appropriate fields on the #SPM# State Perm Mods 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 state permanent difference more than once, you must make additional entries using different tag letters or classes.

 

Screen Entry Fields

Code - Description

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

 

Type

•Type P results in a current tax provision expense offset in the payable account. The result impacts the overall effective tax rate.
•Type E 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. There is no impact on the overall effective tax rate.

 

Tag

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

 

Class

The class identifies each line entered in the originating source.

•The DEF-Default is the default class and assigned in administration.
1.Select Administration and then Manage Data Options.
2.Click Classes/Subclasses.
3.Select System.
4.Select DEF-Default.

 

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.

•The Default-Default is the default subclass and assigned in administration.
1.Select Administration and then Manage Data Options.
2.Click Classes/Subclasses.
3.Select System.
4.Select DEF-Default.
5.Select Default-Default.

 

Amount

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