1. Administering Tax Reporting
  2. Working with Net Operating Losses (NOL)/Credits
  3. Managing NOL Automation Rules
  4. Defining NOL Automation Rules

Defining NOL Automation Rules

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 rule:

  1. From the Home page -> Application.
  2. Select Configurations.
  3. Use the NOL Automation configuration item to define automation rule. By default each account will have a rule defined.
  4. To add additional rules, click on the Actions menu, click Add Rule.
  5. The system inserts a new row in which you can define the rule.
  6. Select a Target account from the prepopulated list of base-level descendants of the TaxLossesCFSTotal account and TaxCreditTotal account.
  7. Select one or more calculation methods:
    • Deferral (not valid for the base of TaxCreditTotal accounts)
    • Utilization
    • Expiration

    See also: Working with NOL Automation Columns

  8. Enter the Entities to which to apply the calculation, or enter Excluded Entities to identify entities to be excluded for processing.
  9. Enter a Percent or Dollar Amount.
    • For Utilization, enter a Percent or Dollar Amount. The Utilization limit for both taxable income and carry forward is 100% by default
    • For Deferral, the deferral limit percent is 100% by default. You can however change it to defer the loss amount.
    • For Expiration, Percent and Dollar Amount are not applicable.
  10. Enter a Priority number for the Utilization process for example, 1.
  11. After you define an NOL Automation rule, you must run Consolidation.

Note:

You can also disable the rule by checking Disable Rule checkbox next to each of the rules.

To define additional NOL Automation rule:

  1. From the Home Page, select Applications, then Overview, and then the Dimensions tab.
  2. Select Cube as Config, dimension as: Identifier
  3. Expand TRCS_NOL Global Rules.

    Expand TRCS_NOL_Rules

  4. Click on TRCS_NOL Rule5 and click on Add Sibling icon.

    Add_Sibling

  5. Navigate to NOL Automation screen (see also, Accessing the NOL Automation Screen). Add rule adds rules based on the number of members created under TRCS_NOL Global Rules.

    Added_Rules