Local Forecast Net Operating Losses (NOLs)

A Net Operating Loss (NOL) occurs when the deductions are more than the income for the year. An NOL can be carried forward to future years to offset income, thus reducing the tax liability. Because NOLs are tracked separately within jurisdictions, the National NOL does not flow down to local calculation. S_NOL_SYS automatically generates an NOL when taxable income is negative. It also automatically uses NOLs when income is present.

Enter a separate line item for each local forecast net operating loss:

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 functional 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 forecast net operating loss.

•	After a local forecast net operating loss item is created, users can edit or delete it by clicking the appropriate icon.

•	Click the pencil icon to edit the entry.

•	Select Save Changes after making any changes.

•	Users can attach files to an individual local forecast net operating loss 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.

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 NOL item is required, contact the Corporate Tax Department.