Multi-GAAP: Usecase Example 1

Separate tax rates for short term capital gains, long term capital gains, and regular Income

  • Create the following metadata under Multi-GAAP dimension.

    Create the following metadata

  • Post the metadata changes and refresh the database.
  • Navigate to Tax Rates by Multi-GAAP form and specify the Tax Rates by selecting each Multi-GAAP member.

    Note:

    • If there are no tax rates entered at individual Multi-GAAP member then system uses Tax Rates entered at "FCCS_No Multi-GAAP" member.
    • It is not mandatory to specify tax rates for every GAAP member.
  • Enter the Tax rates by Multi-GAAP (Long Term Gains at 20%, Short Term Gains at 15%, and Regular Income at 25.17 %).

    Enter tax rates by Multi-GAAP

  • Setup tax automation rules to separate balances for each GAAP if required.

    Setup tax automation rules

  • For example, 20% of Regular Income to Long term gains and 20% to short term gains.
  • Open Current Provision form and run Consolidation.
  • Note the tax affected rates below:

    Long Term Gains

    Long Term Gains are tax effected at 20%.

    Short Term Gain

    Short Term Gains are tax effected at 15%.

    Regular Income

    Regular Income is tax effected at 25.17 %.

    Total Income parent

    Total Income parent (shows the sum of all the GAAPs).