Actual Net Operating Losses (NOLs)

ACTUAL NET OPERATING LOSSES (NOLS)

A Net Operating Loss (NOL) occurs when users have a loss before tax book loss or the deductions are more than the income for the year. A NOL can be carried forward to future years to offset income, and thus reduce the tax liability. Enter the NOL for the unit selected in local currency. NOL_SYS automatically generates a NOL when taxable income is negative; it also automatically uses NOLs when income is present. Administrators can activate NOL automation in ONESOURCE Tax Provision.

Enter a separate line item for each net operating loss:

1.	Select the Code-Description and then Tag or Class/Sub-Class.

2.	Indicate whether the NOL item is classified as current or non-current.

3.	The carryover balance, if any, is automatically pre-populated.

4.	Enter the current activity amount in local currency.

5.	There are also fields for entering deferred only adjustments and balance sheet only adjustments.

6.	The ending balance, if any, is automatically calculated.

7.	Enter the year in which the NOL item was generated and the year in which it expires.

8.	Click Add New to create the net operating loss.

After a NOL item is created, users can edit or delete it by clicking the appropriate icon.

1.	Click the pencil icon to edit the entry.

2.	Select Save Changes after making any changes.

•	Users can attach files to individual NOL items on this page. If users have supporting documents, click the paper clip or filing cabinet next to the item.

•	Users have the ability to add and update notes to a line item. Users may click on the notes icon then add notes, as needed.

•	The impact of individual NOL on the tax provision can be viewed on the Interim Provision report.

•	Deferred Only net operating losses will appear on the Effective Rate report.

Notes:

•	Refer to the Where to Enter Items in ONESOURCE Tax Provision section if users need more information on the different types of adjustments; for example, current activity, deferred only, and balance sheet only.

•	If a new NOL item is required, contact the Corporate Tax Department.