Creating Tax Automation Using Multiple Rule Combinations

Tax Automation rules are executed in the order that they are created to pull, move or squeeze data. The sequence of the execution of the rules is crucial to ensure correct results.

As a best practice, Equity accounts should be segregated from P & L accounts. For the Equity account, you should target the Equity Automated column.

Although the rules are generally created individually, there are instances where it would make sense to create rules that contain a combination of rules to perform a transaction. For example, you could create rules that manage multiple Pull, Move, or Squeeze rules, or more complex rules that incorporate a flow using different rules, such as the following:

  • Pull a balance sheet adjustment, and then squeeze to the ending balance.
  • Pull to an equity automated column, and then squeeze to the ending balance.

Use the examples in the following table to create multiple rule combinations.

Table 21-1 Examples of Multiple Rule Combinations

Rules Scenario Example

PULL

When an Account is defined with multiple Pull rules.

Book Account 10150 has 1000 and 10100 has 2000

  • NIBT Global Rule 1 : Pull 100% 10150
  • NIBT Global Rule 2 : Pull 100% 10100
  • NIBT = 3000

MOVE

When an Account is defined with multiple MOVE rules.

Book Accounts FY15, 10150 has 500 and 10100 has1000

Book Accounts FY16, 10150 has1000 and 10100 has2000

  • NIBT Global Rule 1 : Move 100% 10150
  • NIBT Global Rule 2 : Move 100% 10100
  • NIBT =1500 ( (1000 - 500) * 100% + (2000 - 1000) * 100%)

SQUEEZE

When an Account is defined with multiple SQUEEZE rules.

Book Accounts FY15, 10150 has 2000 and 10100 has4000

  • TempST0001 Account FY16, has10000
  • TempST0001 Global Rule 1 : Squeeze 100% 10150
  • TempST0001 Global Rule 2 : Squeeze 100% 10100
  • TempST0001 =- 4000 ( (2000) * 100% + (4000) * 100%) -10000)

PULL and MOVE

When an Account is defined with PULL and MOVE rules, in any order:

  • PULL followed by MOVE, or
  • MOVE followed by PULL

Book Accounts FY15, P12 10150 has500

Book Accounts FY16, P12 10150 has1000

Book Accounts FY16, P12 20150 has2000

POV: Actual, FY16,P12

  • TempST0001 Global Rule 1 : PULL 100% 20150
  • TempST0001 Global Rule 2 : MOVE 100% 10150
  • TempST0001 = 2500 ( (2000) * 100% + (1000 - 500) * 100%))

PULL and SQUEEZE

(When SQUEEZE logic is used in conjunction with PULL or MOVE, then the Target Movement for SQUEEZE logic should be different.)

When an Account is defined with PULL and SQUEEZE rules, SQUEEZE being the last rule.

Book Accounts FY16, 20150 has1000

Book Accounts FY16, 10250 has2000

TempST0001 Account FY16, has9000

POV: Actual, FY16,P12

  • TempST0001 Global Rule 1 : PULL 100% 20150 TBClosing Automated
  • TempST0001 Global Rule 2 : SQUEEZE 100% 10250 TBClosing Other Adjusted

    (Note that Target movement is Other Adjustment)

  • TempST0001 = -8000
    • ( 1. PULL will be executed and it will be posted to Automated column as 1000
    • 2. Squeeze to book balance, that is 2000 * 100% - 10000 = -8000)

MOVE and SQUEEZE

(When SQUEEZE logic is used in conjunction with PULL or MOVE , then Target Movement for SQUEEZE logic should be different..)

When an Account is defined with MOVE and SQUEEZE rules, with SQUEEZE being the last rule.

Book Accounts FY15, 10150 has500

Book Accounts FY16, 10150 has1000

Book Accounts FY16, 20150 has2000

TempST0001 Account FY16, has9000

  • TempST0001 Global Rule 1 : MOVE 100% 10150 TBClosingAutomated
  • TempST0001 Global Rule 2 : SQUEEZE 100% 20150 TBClosingOther Adjustment

    (Note that the Target movement is Other Adjustment)

  • TempST0001 = -8000
    • 1. MOVE will be executed and it will be posted to Automated column as 500
    • 2. Squeeze to book balance, that is 2000 * 100% - 9500 = -7500)

PULL, MOVE and SQUEEZE

When an Account is defined with PULL, MOVE and SQUEEZE rules, with SQUEEZE being the last rule.

Book Accounts FY16, 10250 has2000

Book Accounts FY15, 10150 has500

Book Accounts FY16, 10150 has1000

Book Accounts FY16, 20150 has2000

TempST0001 Account FY16, has9000

  • TempST0001 Global Rule 1 : PULL 100% 10250
  • TempST0001 Global Rule 2 : MOVE 100% 10150
  • TempST0001 Global Rule 3 : SQUEEZE 100% 20150 TBClosing Other Adjustment

    (Note that the Target movement is Other Adjustment)

  • TempST0001 = -9500
    • 1. PULL will be executed and it will be posted to Automated column as 2000
    • 2. MOVE will be executed and it will be posted to Automated column as 500
    • 3. Squeeze to book balance, that is 2000 * 100% - 11500 = -9500)