The National Current Provision form is used to adjust, review, and calculate the current tax expense for the National provision.
You can enter any additional permanent and temporary difference adjustments, as well as other non-provisioning amounts in the form.
Before you can work with the form, you should consolidate the entity to generate the results in the Automated column, and ensure that the starting point of the Current Provision equals pretax income of the legal entity's financial statements.
For IFRS only, you can derecognize taxable income from the Closing Balance from Deferred Taxes. See the following sections:
- Working with Deferred Tax Not Recognized (DTNR) for IFRS
- Working with Deferred Tax Post DTNR for IFRS
To calculate the current tax expense for the National provision:
- From the Home page, select Tax Provision National, and then Package.
- On the form, select the Current Provision tab.
- Optional: Click Edit Members to modify the POV.
- View the automated values under the Automated column. The automated values are calculated by the system during consolidation as part of the tax automation process. If you do not see values under the automated column it may mean that the entity was not consolidated after book data was imported.
- Optional: Under Adjustments, enter any adjustments to the automated amounts.
- From Actions, select Consolidate to recalculate the Current Provision data form.
Note:If the tax is not calculating for specific accounts, the properties may not be set correctly. For example, you must ensure the following attributes are set on the Account for the Permanent and Temporary Differences:
- Set Tax Data Type to PreTax
- Set Tax Type to NationalAndRegional
Verify the property settings in the Dimension Editor, and correct, if required. See Editing Member Properties using the Simplified Dimension Editor.
- Verify the results for the calculated National Current Tax Expense.