You can set up the Automation policies by using the Other option. Automation is available for Provision, Estimated Payments and Interim datasets.

 

TO SET UP THE AUTOMATION FOR A DATASET:

1.Select My Datasets.

2.For a dataset, click the Units button and the Manage Units page opens.

3.In Manage Units, click the More button and a list of options for the unit administration appears.

4.Click Other.

5.Select the Automation tab.

6.Click Valuation Allowance Rates to activate the Valuation Allowance Automation.

7.Click NOL to activate the NOL Automation.

8.Click AMT to activate the AMT Automation.

•Manage Valuation Allowance automation policies in Provision and Interim datasets.

•Manage NOL automation polices in Provision, Estimated Payments, and Interim datasets.

•Manage AMT automation policies in Provision and Estimated Payments datasets.

 

Based on the automation policies, the application automatically calculates and posts balances which directly impact the provision calculations. The automation policies do have limitations. For example, if a unit has a different unit as its filing unit, it is assigned that filing unit's automation policies.

 

To import the Automation policies, complete the cells in the #U# Unit worksheet in the Import Numbers template.

 

Valuation Allowance Rates

•The system considers any line item starting with the VA_prefix when calculating the balance to be used for a valuation allowance. Line items, such as VA_2006, are taken into account when calculating.

•The automation posts two amounts in the Temporary Difference, NOL Temporary Difference, and After Tax Temporary Difference pages with codes that begin with VA_SYS_; the Current and Non-Current amounts with the source tag of A.

•There are system codes that must exist for the automation to post.

•There are three approaches to the Valuation Allowance Automation - Separate, Aggregated, and Aggregated Post-Tax.

 

NOL Automation

•The automation posts an amount as an NOL Temporary Difference with the code NOL_SYS and the source tag of A. The NOL automation posts a reclass that creates the NOL Temporary difference when the unit has a taxable loss or draw down an available NOL Temporary Difference when the unit has taxable income.

•Selections made in the NOL Allowance rate and Base NOL Allowance impact the amount of the reclass to NOL that is posted.

•The NOL Allowance Rate is the percent of taxable income/loss that should be considered when computing the NOL that should be reclassed for the specified unit.

•The Base NOL Allowance (e.g., §382 limitation) limits the amount of NOL that is considered. If there is no Base NOL Allowance, the default value of zero should remain in the field. The Base NOL Allowance sets the minimum amount to be considered and does not set a ceiling.

 

AMT Automation

•The automation computes the Alternative Minimum Tax and posts an amount for the additional tax liability amount and added to the Regular Tax.

•AMT has two approaches to the Alternative Minimum Tax - Reporting Currency (New) and Local Currency (Original).

•Enter AMT Adjustments (pre- and/or post-tax), and the AMT Tax Rate that you use for calculations for both approaches.

•When you select the Reporting Currency basis, you have the to the AMT Net Operating Loss Carryover amount.