Automating Net Operating Losses (NOL)/Credits

Tax losses are incurred when the total of taxable income (TaxableIncomeAfterLoss) in the current period is less than 0. Tax losses incurred in the current period can be deferred so that they can be utilized in future periods/years.

Hyperion Tax Provision provides the ability to automatically defer, utilize, or expire tax losses based on a set of rules that you define.

When the total of Taxable Income (TaxableIncomeAfterLoss) in the current period results in a positive amount, tax losses originating in prior periods or years can be utilized. Deferred losses (losses originating in prior periods or years) can be utilized either fully or partially in the current period.

Deferred losses from prior periods or years have a year of expiration. After the year of expiration has passed, these losses can no longer be utilized and should be expired in the system. You can define rules to automatically expire deferred losses whose year of expiration has passed.

Net Operating Loss process

Note:

Net Operating Loss Automation rules only apply to the National tax calculation.