Using RTA Bifurcate

1. Create a TRCS application without enabling RTA Bifurcate feature. See Creating an Application.
2. Navigate to Application->Configuration→Enable Feature. Select RTA Bifurcate and click on Enable. See Enabling RTA Bifurcate.

   Notice the new metadata that gets created:

   TRCS_CurrentTaxExpenseRTATotal, TRCS_CurrentTaxExpenseEquityRTAReversal, TRCS_CurrentTaxExpenseRTATotal(Shared), TRCS_RCurrentTaxExpenseRTATotal, TRCS_RCurrentTaxExpenseEquityRTAReversal and TRCS_RCurrentTaxExpenseRTATotal(Shared)

   Note:

   • Under Current Provision National, the hierarchy of Additional Current Provision calculated has a new child member. The following members are present in the Additional Current Provision calculated hierarchy:
     • TRCS_CurrentTaxExpenseRTATotal
     • TRCS_CurrentAddtlCalcRTA
     • TRCS_CurrentTaxExpenseEquityRTAReversal.

     

     

   • Under Current Provision Regional, the hierarchy of Return to Accrual Current Tax Expense has a new child member. The following members are present in the Return to Accrual Current Tax Expense hierarchy:
     • TRCS_RCurrentTaxExpenseRTATotal
     • TRCS_RCurrentAddtlCalcRTA
     • TRCS_RCurrentTaxExpenseEquityRTAReversal

     

     

Learn more about Tax Reporting by watching video: Overview: Working With Metadata in Tax Reporting

Table 23-2 Using RTA Bifurcate

Action	Result
Navigate to Dimension Editor and search for Account TempStockComp and attach attribute TRCS_CurrentAddtlCalcStockCompRTA See Viewing and Editing Dimensions Perform Refresh Database. Navigate to Tax Rates form and enter tax rates as 20% for Actual FY16 P12,P13,FLE201,CA and Actual FY17 P1,FLE201,CA. Similarly, enter tax rates as 30% for Actual FY16 P12,P13,FLE201,CA_Blended and Actual FY17 P1,FLE201,CA_Blended. Set up RTA automation with posting period as P1 and Posting Year as FY17. Navigate to Current Provision and enter 10,000 across NIBT and 5000 for Stock Compensation for Actual FY16 P12. Similarly, select Actual FY16 P13 and make an adjustment at NIBT with value 50000.Run Consolidation at Actual FY16 P13.	Navigate to RTA form. RTA Differences at Stock Compensation is -5000. (P13- P12) Current Tax Expense Per Return should be 7000
Navigate to Current Provision form Expand Return to Accrual Current Tax Expense Total	Note that: Return to Accrual Current Tax Expense Equity reversal value as 1000(5000*0.2) Return to Accrual Current Tax Expense as 7000 Return to Accrual Current Tax Expense Total as 8000
Navigate to ETR form.	The Return to Accrual Current Tax Expense Total is 8000
Navigate to TAR form.	At Automated Total you see Income Tax Payable as -7000 and Equity Reversal as -1000
Navigate to Current Provision form Expand Return to Accrual Current Tax Expense Total.	Note that: Return to Accrual Current Tax Expense Equity reversal value as 1000(5000*0.2) Return to Accrual Current Tax Expense as 7000 Return to Accrual Current Tax Expense Total as 8000
Navigate to ETR Regional form.	The Return to Accrual Current Tax Expense Total is 12000
Navigate to TAR Regional form.	At Automated Total, Income Tax Payable is -10500 and Equity Reversal as -1500

Now, follow the same steps for Permanent Acccount:

1. Navigate to Dimension Editor and search for Permanent Account (PermEquity).

   

   

2. Attach attributes Tax and National.
3. Share this member under TRCS_CurrentAddtlMTotal.
4. Edit any Perm accounts and attach the atrribute PermEquity and perform Refresh Database.
5. For actual FY16 P12 have some data entered against Deductions for example, 3000.
6. Run consolidation for Actual FY16 P13 and Actual FY17 P1.
7. Navigate to Current Provision National.
8. Ensure the Current Tax Expense value is sum of tax affected perm and temp accounts. Note that, Return to Accrual Current Tax Expense Equity reversal value as 1000(5000*0.2) + 600(3000*0.2)=1600

Note:

You can create a separate account for Regional and perform the same steps.