LOCAL ACTUAL NET OPERATING LOSSES (NOLS)

A Net Operating Loss (NOL) occurs when the deductions are more than the income for the year. A NOL can be carried forward to future years to offset income, thus reducing the tax liability. Because NOLs are tracked separately within jurisdictions, the Federal NOL does not flow down to the local calculation. S_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 local actual net operating losses:

1.Select the Code-Description and then Tag or Class/Sub-Class.
2.Indicate whether the 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 fields for entering deferred adjustments and balance sheet only adjustments.
6.The ending balance, if any, is automatically calculated.
7.Click Add New to create the local actual net operating losses.

 

•Users can attach files to an individual local actual net operating losses item 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.
•The impact of individual local actual net operating losses on the tax provision can be viewed on the Local 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 for more information on the different types of adjustments; for example, current activity, deferred only, and balance sheet only.
•If a new local actual net operating losses item is required, contact the Corporate Tax Department.