TaxCredits and TaxLosses Accounts

You can use the NOL Automation Screen to configure rules defining how the system should automatically defer, utilize, or expire tax losses and book the corresponding offset amounts. See Automating Net Operating Losses (NOL)/Credits.

Tax Losses Accounts

Tax Losses accounts can be used to enter different types of losses and deductions. For each type of Tax Loss, multiple accounts are required to store various values. Each type of tax loss (for example, NOL, Capital Loss) will have two primary accounts required to store Tax Losses:CY (Current Year), and CFS (Carryforward system).

Current Year losses are available for input only in the RollForward columns of the Acquisitions form including Acquisitions and Rate Change for Acquisitions column, and in the Temporary Differences Transfers column. If the IFRS reporting standard is used, then DTNR columns are also available for data entry.

Data entry in the Carryforward system accounts is available in the Current Provision and Temporary Differences Current Year Adjustments and Other Adjustments columns. If you are tracking tax losses in the tax loss form with Detail accounts, the Other Adjustments column is not available for data entry as this cell is used to automate amounts from the tax loss rollforward schedule.

Tax Losses details can be tracked using a Detail account that is a base member of TaxLossesD. Adding a Detail account to maintain details is optional when creating a Tax Loss account. The Detail Tax Loss account and Carryforward account are linked using the TaxDetail user-defined property.

If you are tracking details in Tax Provision, you must set up an additional account for the details. You must set this account as a parent account, with the corresponding CY and CFS accounts as child members. Ensure that the number of children under TaxLossesD (the Detail account) is equal to the number of children under TaxLossesTotal. During the validation process, the system checks to make sure that the closing balance of the CFS account is the same as the closing balance of the Tax Detail account.

If you use require Regional tax losses or deductions, you must set up an additional account with Reg as the account name suffix to the CFS account.

For details on the Tax Details user-defined property, see Tax Detail User-Defined Property.

For additional information and examples of using the Tax Losses data form, see Using the Tax Loss Schedule.

Tax Credit Accounts

You can create multiple Tax Credit accounts to specify tax credits.

Similar to tax losses, you can maintain Tax Credit details in Tax Provision. To maintain Tax Credit details, you must add a Detail account under TaxCreditsD (or RTaxCreditsD for Regional).