State Tax Adjustments

State Tax Adjustments information is managed in the State Tax Adjustments screen under Data Input > State in the Provision and Estimated Payments datasets and under Data Input > Forecast/Actual > State in the Interim datasets. State tax adjustments can be thought of as a post-tax state 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 State Tax Adjustments screen, complete the appropriate fields on the #STA# State 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 state tax adjustment 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 state tax adjustments.
•Entries with codes beginning with NC_ designate the tax adjustment as a non-cash tax adjustment.

 

Type

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

 

Tag

Select a value from the drop-down list.

 

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