1. Working with Tax Reporting
  2. Working with Interim Tax Provisioning
  3. Calculating Annualized Estimated Effective Tax Rate (AEETR)
  4. Generating Interim Tax Provision

Generating Interim Tax Provision

Before you can generate Interim Tax Provision, the following conditions must be met:

  • Interim Tax Provision must be enabled for the application
  • NIBT data must be entered on the Current Provision form

To generate the Interim Provision:

  1. From the Home page, select Tax Provision Interim, then Package Forecast, and then Tax Rates Forecast. Enter the Current and Deferred Tax rates on the Tax Rates screen, and then click Save.
  2. On the Package Forecast, select the Current Provision Forecast tab.
  3. On the Current Provision Forecast tab, click Edit Edit icon to select the required POV. Ensure that the Scenario is set to Interim Provision Forecast.
  4. Expand NIBT (Net Income Before Tax).
  5. For Book Adjustments to NIBT, enter any adjustment to the NIBT amount under Adjustment, and then click Save.

    Note:

    The NIBT data is defaulted from the Current Provision form.
  6. Click Consolidate, and then view the calculated results.
  7. Select the ETR Forecast tab, to review calculated results for the Consolidated ETR. The interim ETR is expressed as a percentage of the net income before tax for the Consolidated ETR percentage.
  8. Select the Interim tab to display the following screens, depending upon your selections, and select the Actual scenario:
    • Interim Total - Review the Interim Total for the Actual Scenario
    • Interim Detail - Review the Interim Detailed for the Actual Scenario
  9. Optional: In Adjusted AEETR, enter any required adjustments to the Total Tax, and then click Save.
  10. Optional: Enter the value of the Total Discrete Provision, and then click Save. You can add multiple discrete items. Automated entries do not apply for discrete items.
  11. Under Actions, select Consolidate.

    The Current Tax Interim Provision plus the Deferred Tax amount equals the Total Tax Interim Provision.

    The value of any discrete items is added to the Tax Expense Before Discrete Items AEETR to calculate the Current Tax Interim Provision.

  12. Review the results for Current Tax, Deferred Tax, and Total Tax for the following:
    • Estimated Tax Rates
    • Tax Expense Before Discrete Items
    • Discrete items
    • Interim Provision