Defining NOL Automation Rules

The NOL Automation screen enables you to configure the rules defining how the system should automatically defer, utilize, or expire tax losses and book the corresponding offset amounts.

To define Net Operating Loss/Credit rules, you must have Administrator or Power User security rights.

Note:

NOL Automation rules execute as part of the Calculate process and cannot be invoked as an on-demand rule.

  To define NOL Automation rules:

  1. From the Tax Provision menu, select Settings, and then select NOL Automation, or select it from the Application Tasks list.

  2. To add a rule, from the toolbar, click Add Rule, or select Actions, and then Add Rule.

    The system inserts a new row in which you can define the rule.

  3. Select a Target account from the prepopulated list of base-level descendants of the TaxLossesCFSTotal account and TaxCreditTotal account.

  4. Select one or more calculation methods:

    • Deferral (not valid for the base of TaxCreditTotal accounts)

    • Utilization

    • Expiration

  5. Enter a Source Detail account, or use the Member Selector to select a Detail account to associate with the account.

    You can specify only one Source Detail account.

  6. Enter the Entities to which to apply the calculation, or enter Excluded Entities to identify entities to be excluded for processing.

    If you do not specify an Entity, the calculation runs on all entities.

  7. Enter a Percent or Dollar Amount.

    For Utilization, enter a Percent or Dollar Amount.

    For Deferral, you must enter a Percent to defer the loss amount.

    For Expiration, Percent and Dollar Amount are not applicable.

  8. Enter a Sequence number for the Utilization process for example, 1.

    Sequence is required for Utilization.

    It is not applicable for Deferral or Expiration.

  9. After you define an NOL Automation rule, you must run Force Calculate.

    The Calculate process does not execute NOL Automation rules because updating NOL Automation rules does not impact data and trigger the calculation. You must run Force Calculate to execute the rule.