Companies Active for Less Than a Full Period

If a company is not active for the full reporting period, you can specify the number of days that the company was active during the specified reporting period. The system uses this information to calculate tax information correctly. If you are processing tax information for a company group, and you specify a number days during processing, the system uses that information to calculate taxes for all companies in that group. Therefore, companies with different periods of activity during a reporting period must be processed separately.

For example, Company 100, Company 200, and Company 300 belong to a company group, but Company 300 has only been active for a portion of the reporting period. To accurately calculate taxes for this group of companies, you would process Company 100 and Company 200 together. You would then process Company 300 separately, specifying the number of days that the company was active during the reporting period. When all three companies are active for the entire reporting period, you can then process them together.