Tips for consolidations
Verify gains and losses data entry
For general sales of business property (Form 4797) or capital gains (Schedule D), you have the option of allowing the system to calculate gains or losses or overriding the calculation in favor of a user-defined amount.
- InOrganizer, go toGains and Lossesand then open eitherDisposition of PropertyorCapital Gains and Losses.
- Select an asset.
- To maintain consistent levels of data entry, make sure that all subsidiaries and parents have either:
- An amount entered in theGain (Loss) Automaticfield, or
- No amount entered in theGain (Loss) Automaticfield for system calculation.
Verify net income per books calculation
Net income per books is normally a system calculation. However, you can override the system calculation and enter your own amount.
- InOrganizer, go toBalance Sheet/M1-M2-M3and selectSchedule M1/M2/M3. Net income per books is a system-calculated amount unless theDo not automatically adjust Schedule M1, Line 1 for accrualsoption is selected. An amount can be manually populated using theNet Income Per Booksfields.
- For consolidation purposes, in each subsidiary:
- Allow automatic system calculation for all entries (Net income per books field's automatically populated), or
- SelectDo not automatically adjust Schedule M1, Line 1 for accrualsand enter an amount forNet Income Per Booksfor all entities.
Print in columnar format
This columnar whitepaper print mimics the tax form. Columnar print format's available for these forms:
- Form 1120, Pages 1-5
- Form 1125-A
- Form 4562
- Form 4626
- Form 4797
- Form 8810
- Form 8825
- Form 8903
- Schedule D
Column 1 | Column 2 | Column 3 | Column 4 |
|---|---|---|---|
Combined | Eliminations | Adjustments | Consolidated Amount |
This is the total of all subsidiaries or divisions, subconsolidations, and the parent. | The heading on this column's the name on your eliminations return. Any entries you made in that return will appear in this column. | This is the difference between (columns 1 and 2), and column 4. This column will contain adjustments made in the consolidation process, like charitable contribution limitations. If we find any other differences, we'll print them here also. If these appear, you probably have an override in one of your subsidiaries that's forcing an adjustment here. | This amount's the amount found on your return. If you haven't been consistent in the level of your detail, this amount won't add to the combined amounts and will force an adjustment. |
Print supporting line item detail
Supporting detail print's print for line items on the tax form.
To format supporting detail for subsidiaries, first, choose the way you'd like your supporting detail for each subsidiary or subconsolidation to print. In the system, you can choose between 2 styles for this:
- Stacked- Stacked whitepaper's print in a portrait orientation showing the detail for each member of the consolidation, one below the other, printed in the order in which you listed your returns on theWhat to Consolidatescreen. The parent's always the first company shown.
- Cross-Tie- This is a columnar print; you see the amount from each subsidiary in a spreadsheet format, rather than one below the other. Cross-tie print has 2 parts just like columnar form print; the first page shows combined, eliminations, adjustments, and consolidated. The second page shows each amount making up the combined amount.
Print Look-Through detail
This option can be selected for the Top Consolidation. For multi-tier consolidations, you'll print lower level subsidiaries on the columnar schedule.
To print the elimination company on a sub-consolidation, in
Organizer
, go to General Information
, Return and Print Options
, select Subconsolidation elimination with tiered columnar detail
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