The Local Temporary Differences page allows you to enter differences between National Taxable Income and Local Taxable Income that are temporary in nature; i.e., these differences will reverse in the future. Because temporary differences often flow from the national calculation, only the difference between the national and local amounts for a temporary difference is entered on the Local Temporary Differences page. Refer to Scenario 2 on the Local Jurisdiction page of this manual, in which the amount entered for the local temporary difference would be 20,000.
Enter a separate line item for each Local Temporary Difference:
| 1. | Select the appropriate code-description from the drop-down menu in the first column. |
| 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. Note: Refer to the Where to Enter Items in ONESOURCE Tax Provision section for more information on the different types of adjustments (i.e., current activity, deferred only, and balance sheet only). |
| 6. | Click Add New to create the temporary difference. |
After a temporary difference item is created, you can edit or delete the item by clicking the appropriate icon. Click the pencil icon to edit the entry. Select Save Changes after making any changes. You can attach files to an individual temporary difference items on this page. If you have supporting documents, click the paper clip icon next to the item.
The impact of individual temporary differences on your tax provision can be viewed on the Local Tax Provision report and the Local Tax Provision report.
Global Access users can enter information in the current activity, deferred only, and balance sheet only fields using the income statement approach. Or you can input an ending balance amount and have the system calculate the current activity using the balance sheet approach. Administrators can enable the balance sheet approach through a parameter. However, even with this parameter, Global Access users still have the option to take either approach for each line item.
