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Trial Balance

Add custom tax subcodes

Tax codes are a set of predefined groupings that you can assign to specific general ledger accounts (via the Tax Schedule columns in the Trial Balance tab, or in the Groupings tab).
You can generate reports that provide totals for each tax code, and you can use tax codes to bridge amounts to tax applications such as UltraTax CS. When you import custom tax codes into UltraTax CS, the application summarizes the tax amounts for import and uses the user-defined description on the return.
In addition to using the predefined tax codes and subcodes that are included with the application, you can define and then assign custom tax codes.
note
If you add custom tax codes and move to a different year, the application will transfer them to the new year only if you haven’t entered activity in that year. For example, if you create a new client record in the current year, then move the processing period to the prior year and create custom tax codes in that year, when you move back to the current year, the application won’t bring forward the custom tax codes created in the prior year.

Adding custom tax subcodes

  1. Open your project.
  2. Select the
    Groupings
     tab.
  3. Select the tax grouping schedule from the dropdown. Example - 1120: C corporation
  4. To add the custom subcode:
    1. Select the code/subcode combination you want to add.
    2. Select
      Add subcode
      .
    3. Enter a code and description for the new custom subcode.
    4. Add unites if necessary.
    5. Select
      Save & Close
      .
The following scenario illustrates the advantages of using custom tax subcodes.
The chart of accounts for Client A (1120 client) includes several expense accounts for utilities and insurance. These expenses relate to tax subcode
DED, 26 (1120, Other deductions)
, but the client would like to be able to group these expenses as 2 items (utilities and insurance) for tax integration purposes.
Assigning these accounts to a single tax subcode (
DED, 26
) would yield unnecessary detail for both utilities and insurance in the tax export and in the tax reports. However, by creating and assigning custom tax subcodes
UTIL-Utilities
 and
INSUR-Insurance
 as children of the existing tax subcode DED, 26, you can group all the utilities expenses together as
Utilities
 by assigning those accounts to DED, 26, UTIL and all the insurance expenses together as
Insurance
 by assigning those accounts to DED, 26, INSUR. In this way, you can provide the necessary summary information for these separate groupings within the tax export and the related tax reports.

This article applies to:

  • PRODUCT: Onvio
  • Subject: Trial balance
  • Audiences: Staff