Working with Unitary, Combined, Consolidated, and Separate US Federal and State Provision Configuration

Follow the configuration steps below:

1. Establish a filing group parent for the US federal and state provision. This hierarchy should be part of the consolidated group provision hierarchy so as to roll-up to the ultimate reporting parent. You can create an alternate hierarchy (see, Creating Alternate Hierarchies in Administering Tax Reporting) by filing group, but it may not correctly roll-up to the ultimate reporting parent.
2. Configure Allow Upper-Level Entity Input by selecting the checkbox. This allows you to enter data including tax attributes (for example, Tax Losses, Credits, and others), Tax Rates (see, Entering Tax Rates), etc. For more information on Tax Loss/Credits, see Managing Tax Loss/Credit by Year of Expiration.

   

3. Configure parent tax calc attribute on the filing group parent entity to calculate tax at the parent level using all pre-tax data from the base entities and data entered at the parent. For more information, see Parent Tax Calculation for National and Regional.

   

4. Configure a domicile property for the parent entity.

   

   Note:

   You must enter the tax rates, tax data, etc.
5. Calculate tax based on the following options:
   1. Calculate tax at the parent using one National tax rate. Enter tax rates at the parent level. For additonal information, see:
      • Working with National Tax Process
      • Working with Tax Rates
   2. Calculate tax at the parent using one Regional tax rate and one Regional apportionment rate. In the Tax Rates form, set the Active Region Flag to "Active" at the parent level.

      

      For additonal information, see:
      • Working with Regional Tax Process
      • Entering Tax Rates
   3. Calculate tax at the base entity and re-calculate tax at the parent using the parent’s tax rate and base entity pre-tax data. Enter tax rates for the base and parent entities and set the Active Region Flag to "Active" at the base and at the parent.
   4. Calculate tax at the base entity and roll-up the tax effect (separate filing) to the parent. Set the Active Region Flag to "Active" at the base only.

      Note:

      Do not set the Active Region Flag at the parent level.

Related Topics:

Setting Up Tax Rates and Working with Dimensions in Administering Tax Reporting