Calculating Annualized Estimated Effective Tax Rate (AEETR)

Tax Reporting provides interim provisioning based on the total estimated annualized effective tax rate as determined through the full year forecast. The forecast scenario is provided to perform the calculation of the estimated annualized effective tax rate.

To calculate AEETR:

• Apply Global AEETR: After calculating the forecasted AEETR in the Interim provision forecast scenario, the Global AEETR now can be applied to all Entities NIBT in the Actual scenario on the Interim Provision form. See Identifying Global AEETR Entity
• Automate the AEETR from any Scenario into any target Scenario by selecting:
  • Interim scenario where AEETR is being calculated
  • Actual scenario where the AEETR is being pushed. See Identifying Interim Scenario
• Mapping data to the Tax Account Rollforward (TAR) from the Interim Provision is supported using TAR Automation. See Setting up TAR Automation Journal Entry