Net Operating Losses (NOLs) - Tax Basis

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7.0 RELEASE OVERVIEW

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

Note: Tax Basis Temporary Difference screens allow you to enter amounts as purely tax balances, with or without book or net of book.

 

Enter a separate line item for each Net Operating Loss:

1.Select the appropriate code-description from the drop-down menu in the first column.
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 adjustments and balance sheet only adjustments.
6.Click Add New to create the temporary difference.

Notes:

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

After a temporary difference item is created, you 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. You can attach files to 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 Tax Provision report and the Effective Rate report.