1. Working with Tax Reporting
  2. Working with National Tax Process
  3. Working with National FX Rates
  4. Working with Amount Override and Rate Override for Tax Accounts
  5. Applying Amount or Rate Override to a Tax Account
  6. Working with Forms: FX Rates - Book Override and Tax Override Form
  7. Example: Configuring FX Rate Override for Tax Account

Example: Configuring FX Rate Override for Tax Account

The example below illustrates how to setup a FX Rate Override for NIBT account:

Note:

This example assumes that Montreal(CAD) entity is rolling up to a US parent entity.
  1. Navigate to Dimension library. See Account Dimension in Administering Tax Reporting.
  2. Select TRCS_NIBT account and click on Edit Edit_icon icon.
  3. Select the Exchange Rate Type as Historical Rate Override and save.

    Select_Exchange_Rate_Type

  4. Refresh the database.
  5. Navigate to Library.
  6. Expand Tax Administration folder.
  7. Open TRCS_FX Rates - Tax Override form. The form will automatically shows the NIBT account.
  8. Enter the FX Rate Override value for the period, submit data. Here in the example, you enter 1.5.

    Enter_FX_Rate_Override_Value

  9. Run Consolidate/Translate to notice the rate being applied for the NIBT Account.
  10. Open current provision form to notice the translated data. The screenshots below show TRCS_NIBT/Entity currency for Adjustment has 10000 and Parent Currency is 10000 * 1.5 = 15000.

    Current_Provision_Translated_Data

    Parent_Currency

Note:

Both pre-tax, tax data source members for the NIBT account will use the same FX override rate.