1120 consolidation Cross-Ties
What are cross-tie codes and how are they created?
The Cross-tie functionality enables the consolidation of customized detail. Cross-tie uses Tax Combination Codes (TCCs) which are unique, 3 character numeric codes. Each TCC code is paired with a description and input at the lowest level of detail (parent, sub, division). Each TCC need to be unique for each line and description. The 1st occurrence of a TCC and description is used and any subsequent identical TCC with differing descriptions are ignored. Looking at the following example, all amounts coded as "Intercompany Expenses" with TCC 100 entered in the parent, eliminations, and all subsidiary returns will combine and print as 1 item in the top consolidator.
Cross-tie detail is available for detail in federal consolidated returns for:
- 1120 page 1: Lines 5, 10, 17, 18, 19 and 26
- 1120 page 2: Schedule A line 5 and Schedule C line 17a
- 1120 page 4: Schedule L lines 4, 5, 6, 8, 9, 14, 18, 19, 21, 23, 24, and 26
- Schedule M-1: Lines 4, 5, 7, and 8
- Schedule M-2: Lines 3, 5c and 6
- Schedule M-3: Part II line 26
- Schedule M-3: Part III line 35
The maximum number of detail lines for most items is 150. The exceptions to the 150 items are:
- Other deductions with a maximum of 250 line items
- Accrued Federal Income Tax with a maximum of 15 line items
- Accrued Fed Tax Payments with a maximum of 15 line items
- Accrued State Taxes with a maximum of 75 line items
- Accrued State Tax Payments with a maximum of 75 line items
- Adjustments to shareholders equity with a maximum of 15 line items
- Schedule M-1, line 4 with a maximum of 255 line items
- Schedule M-1, line 5 with a maximum of 255 line items
- Schedule M-1, line 7 with a maximum of 255 line items
- Schedule M-1, line 8 with a maximum of 255 line items
- Schedule M-3, Part II, line 26 with a maximum of 250 line items
- Schedule M-3, Part III, line 35 with a maximum of 250 line items
Before consolidating with cross-ties, go to the top consolidator's section and select the option
Cross-Tie - prints in columnar format and requires cross-tie codes
. Then go to and select the option Consolidate with cross-ties
.After consolidating, go to . This screen will list any issues that arise with consolidating the cross-ties. It lists the Return, TCC/MCC, and Diagnostic for easy troubleshooting.
note
If changes are made to the parent, subsidiary, or eliminations returns' amounts, codes, or descriptions, recompute the return and reconsolidate with the cross-tie option selected.
