Example Use Case for Calculating Tax Losses and Credits

RTA for Tax Losses

1. Setup an RTA Automation, with Source Years FY16, FY17, FY18 and Target as FY19 for P12 posting.

   

2. Enter data in the RTA form for Tax Losses accounts for any or all source years and the RTA period. For example, the following amounts are added under "Tax Losses – Carryforward Automated" for all the source years: -6000 for FY16, -5000 for FY17, and -7000 for FY18. Example screenshot for FY16 below.

   

3. Consolidate for Target year (FY19) and posting period.
4. Check data in Return to Accrual (Deferred Only) column/movement in Temporary Differences form for Target year, posting period.

   

5. This same amount should be visible under new movement member Return To Accural Automated (TRCS_TLCRTAAutomated) in Tax Losses.

   

   Note:

   After running consolidation, full RTA amount (for example, 18000) appears in FY19 under Return To Accural Automated(TRCS_TLCRTAAutomated) for the Current Year. However, the RTA can be adjusted for applicable years as required.

   

RTA for Tax Credits

1. Similar to Tax Losses, enter data in the RTA form for Tax Credits accounts for any or all source years and the RTA period. In the example below, -6000 amount is added under Jobs Credit for FY16.

   

2. Consolidate for Target year (FY19) and posting period P12.
3. Check data in Return to Accrual (Deferred Only) column/movement in Temporary Differences form for Target year, posting period.

   

4. This same amount should be visible under new movement member Return To Accural Automated (TRCS_TLCRTAAutomated) in Tax Credits.