Skip to main content

Legal

Tax & Accounting

Trade & Supply

Risk & Fraud

News & Media

Books

Developers

My Datasets

Automation Policies

You can set up the
Automation
 policies and let the system automatically calculate and post balances that directly impact the provision calculations. You can find the automation policies in
My Datasets > Units > More > Other
. The policies are available in the Provision, Estimated Payments and Interim datasets
To set up the automation for a unit:
  1. Select
    My Datasets
    .
  2. For a dataset, click the
    Units
     button and the
    Manage Units
    page opens.
  3. In
    MANAGE UNITS
    , click the
    MORE
     button and a list of options for the unit administration appears.
  4. Select
    Other
    .
  5. Select the
    AUTOMATION
     tab.
  6. Select
    Valuation Allowance Rates
    ,
    NOL
    , and
    AMT
     to activate the Automation. For more information, see the automation policy table below.
Automation pOLICy
Notes
Valuation Allowance Rates
You can use the Automation Policies policy,
Valuation Allowance Rates
, to post amounts automatically for deferred tax assets, based on a pre-determined percentage.
  • The system considers all line items starting with the VA_prefix when calculating the balance for the valuation allowance. For example, line items such as VA_2016, are taken into account when calculating the valuation allowance.
  • The system automation posts two Temporary Difference line item amounts:
    NOL Temporary Difference
    , and
    After Tax Temporary Difference
    . The codes will begin with VA_SYS_ for the
    Current
    and
    Non-Current
     amounts with an A for the Tag Letters.
  • There are System Codes that must exist for the automation to post.
  • There are three approaches to the Valuation Allowance Rates - Separate, Aggregated, and Aggregated Post-Tax.
NOL Automation
You can use the Federal Units - Other Administration Options to calculate a percentage of the current federal loss to reclass as a NOL deferred tax asset and enter the Base NOL Allowance. This option creates a Federal Only NOL adjustment while not affecting the state calculation.
  • The automation posts an amount as an NOL Temporary Difference with the System Codes, NOL_SYS, and with an A for the Tag Letters. The NOL Automation - Federal posts a reclass that creates the NOL Temporary difference when the unit has a taxable loss or draw down an available NOL Temporary Difference when the unit has taxable income.
  • Selections made in the NOL Allowance rate and Base NOL Allowance impact the amount of the reclass to NOL that is posted.
  • The NOL Allowance Rate is the percent of taxable income/loss that should be considered when computing the NOL that should be reclassed for the specified unit.
  • The Base NOL Allowance (e.g., §382 limitation) limits the amount of NOL that is considered. If there is no Base NOL Allowance, the default value of zero should remain in the field. The Base NOL Allowance sets the minimum amount to be considered and does not set a ceiling.
AMT Automation
You can use the Alternative Minimum Tax automation to compute and post an amount for the additional tax liability and adds to the Regular Tax.
  • AMT has two approaches to the Alternative Minimum Tax (AMT) - Reporting Currency (New) and Local Currency (Original).
  • Enter AMT Adjustments (pre- and/or post-tax), and the AMT Tax Rate that you use for calculations for both approaches.
  • When you select the Reporting Currency basis, you have the to the AMT Net Operating Loss Carryover amount.

This article applies to:

  • PRODUCT: ONESOURCE Tax Provision