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About apportionment base codes

Apportionment base codes are used to apportion expenses and assets in the Income and Asset Sourcing Workpapers and can be customized.

System defined apportionment base codes

System defined base codes can't be changed. The list of system-defined base codes depends on the entity type (subsidiary, division) and the international filing type (foreign entity or foreign tax credit entity).

User-defined apportionment base codes

A user-defined apportionment base is constructed based on user-defined statistics (that is, square feet, direct labor, direct material). User-defined bases are available to apportion expenses in both the FTC (domestic) and Foreign Entity Income Sourcing Workpapers and assets in the Foreign Entity Asset Sourcing Workpaper. Any account apportioned using this base is spread among all source codes assigned to the base in the same proportion as the entered numerator amounts.
User-defined bases are assigned a unique code in the range 8000-8999 and can be utilized in 2 ways:
  1. Creating a base - Enter source codes to use in the apportionment base. The corresponding amount entered is the numerator that is used to apportion expenses to that source code. The denominator's the total entered for all source codes identified in the base.
  2. Adjusting system-defined bases - Entered amounts are used to increase or decrease a source code numerator that was built for another apportionment base. The user-defined base is added to or subtracted from the modified base in the
    Apportionment Bases - Composite
     screen in
    Charts
    ,
    International Apportionment Bases
    .

Composite apportionment base codes

A composite apportionment base combines (adds) or removes (subtracts) system and user-defined bases to create a new base. These bases are available for apportioning expenses in both the FTC and foreign entity sourcing workpapers. Any account apportioned to this base is spread to the source codes in a ratio built from the combination of one or more bases, or from the exclusion of one or more bases from a given base.
Composite apportionment bases are assigned a unique code in the range 9000-9999. Combine existing system-defined or user-defined apportionment bases in either 1 or both of these ways.
  1. Adding bases together - Select the
    Apportionment Bases
     to combine then in
    Add/Subtract
     select
    Add
     for each base code to include.
    note
    At least 1 base must have
    Add
     selected.
  2. Subtracting bases from other bases - Select the
    Apportionment Bases
     to combine then in
    Add/Subtract
     select
    Subtract
     for each base code to exclude.
You can create a composite apportionment base code in
Charts
International Apportionment Bases
Composite
.

Source Code apportionment base codes

A
Source Code
 apportionment base lets you change a system-defined or user-defined
Apportionment Base Code
 to
Modify
, using
Source Code Options
 to
Include
 or
Exclude
 system and/or user-defined source codes. When you use
Batch Select
, the system displays source codes by
FTC type
, so you can
Add Unassigned Source Codes
 or
Remove Assigned Source Codes
. The system calculates apportionment ratios only based on included (not excluded) source codes.
The user assigns a unique code in the range of 6000–6999 to each source code apportionment base. Foreign Entity divisions can't select source code apportionment base codes.
You can create a source code apportionment base code in
Charts
International Apportionment Bases
Source Codes
.

This article applies to:

  • PRODUCT: ONESOURCE Income Tax
  • Return type: 1120 Corporation
  • Subject: Apportionment

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