Adding Override Tax Rate Accounts

You can apply tax rate overrides for Deferred Tax calculations. Tax rate overrides impact tax calculations, deferred tax classification (Current and Non-Current), and rate change reconciliation.

To enter Override Tax Rates, you use the Override Tax Rates data entry form. See Data Form Names and Descriptions.

In the metadata file, for every Temporary account that requires an override rate, you must perform these steps:

  • Create the corresponding Override Tax Rate account in the Tax Rate hierarchy. Use this naming convention for the Override Tax Rate account:

    <Temp acct label>_TR

    Example:

    Tax account:  TempGS0012
    Override Tax Rate account:  TempGS0012_TR
  • Specify the RollForward TopMember as OverrideTaxRates, the Jurisdiction TopMember as AllNational, the TaxType TopMember as National, and set the additional Custom TopMember as blank.

If you do not define an Override Tax Rate, the system uses the Current Year tax rates to calculate taxes.

If you have defined an Override Tax Rate, the system calculates the tax on all Closing members using that rate. The system first calculates the CY base members at the Current Year tax rate. Then it calculates the difference between the Current Year tax rate and Override Tax Rate, and stores the amount in the corresponding RollForward member.

Example:

Current Year Tax Rate:  30%, Override Tax Rate: 40%, CYSys: 10,000
RF#CYSys.DC#PreTax = 10,000
RF#CYSys.DC#Tax = 3000
RF#CYSysTR.DC#Tax = 1000
RF#CYSysDT.DC#Tax = 4000

If an account is identified as an Equity Temp account, the CYSys and CyAdj amounts are reversed to CYSysReversal and CyAdjReversal.

Sample Account Properties:

PropertyValue
Account TypeBALANCERECURRING
IsCalculatedNo
IsConsolidatedNo
IsICPNo
PlugAcct<Blank>
RollForward TopMemberOverrideTaxRates
Jurisdiction TopMemberAllNational
ReportingStandard TopMember<Blank>
DataCategory TopMember<Blank>
TaxType TopMemberNational
Other Custom TopMembers<Blank>
NumDecimalPlaces<Any valid values>, suggested: 2
UseLineItemsNo
EnableAggregationOnCustomsNo (for All Customs)
UDA1 <Blank>
UDA2<Blank>
UDA3<Blank>
XBRL<Blank>
Security Class<As needed>
ICPTopMember<Blank>
EnableDataAudit<As needed>
CalcAttribute<Blank>