The following has been taken from the Tax Provision Blueprint "Instruction Guide" starting at page 66.
See KB article: "Tax Provision Blueprint Instruction Guide - PV7.3.0 SV100"
See KB article: "Dimension - Accounts (2/2)"
See KB article: "Dimension Member Names - Renaming and Deleting"
See KB article: "Dimension Text Fields - Summary"
Accounts
XFW_TXP_Accounts is the Tax Provision Blueprint Account Dimension that includes the standard Tax Provision Blueprint Chart of Accounts. There are specific Account Members in each Tax Account hierarchy that should not be modified as they are core to the application.
If additional and/or different Account Members (base level input or parent subtotals) are required in the XFW_TXP_Accounts Dimension, follow the guidelines below to minimize required changes in existing business rule calculations and cube views.
There may be areas where alternate hierarchies have been used and consideration must be made when adding a new account. Typically, similar accounts are cloned and then given a new name and description. Next, search for the cloned member to see if it exists elsewhere. If so, consider adding the new member there as well.
Where possible, account parents are in multiple hierarchies to facilitate maintenance. For example, TXP_TempDiffTotal is used in three hierarchies: TXP_CurTaxExp, TXP_NatDeferredwLocal, and TXP_NatDeferredwLocal_ETRLocal.
Accounts Notes
- Text 1 Property is used to identify Losses Not Benefited expense and discrete accounts.
- No accounts are flagged as IsIC.
- Alternate hierarchies are used.
- Aggregation weights are used (e.g., TXP_TxRperGL and TXP_TaxPaymentsGL).
- No Member Formulas are used except for TXP_YTDAverageRate, TXP_YTDAverageRate_FCST_M5, TXP_YTDAverageRate_FCST_Q2, TXP_YTDAverageRate_FCST_Q3, TXP_ClosingRate, TXP_ClosingRate_FCST_M5, TXP_ClosingRate_FCST_Q2 and TXP_ClosingRate_FCST_Q3.
- All parent members must have the word Total in the description. This will help in the formatting of Cube Views.
- Some account hierarchies contain local jurisdiction only accounts. Visibility and access to Local only accounts is driven by Parameters, UD1, UD2, UD4, UD7, and Business Rules.
- If you need to load the TXP_PreTaxIncome with IC detail, then set “Is IC Account = True”, create a plug account then assign the plug account to the TXP_PreTaxIncome account. Apply this setup to any other accounts that need to capture IC detail.
Any base level account that is classified as Discrete must have the Text 1 property of Discrete=Yes. This is used to drive Parameters, BR’s, etc. Parent level accounts where all the children are Discrete should also have Text 1 Discrete=Yes.
Any base level account that is a Losses Not Benefited expense item that needs to be included in the Interim Reporting Effective Tax Rate calculation must have Text 1 property of LNB_Exp=Yes. Use a comma to separate the properties if both are needed.
Account Hierarchies: Tax Provision Blueprint uses five groups of Account hierarchies:
TXP_TaxRates
Tax Rates are populated in conjunction with UD1, UD2, UD4 & UD7. The Flow Member and remaining UDs are None.
TXP_TaxRates Setup Notes
- Do not modify the member names or any of the properties on these objects, except the Description.
- All Tax Rates are set up as Balance Recurring.
- IsConsolidated = False.
- New members (tax rates) may be added for reporting purposes – but they will not automatically flow into computations. BR updates will be required.
TXP_TaxAccounts
TXP_CurTaxExp (current tax expense) and TXP_NatDeferredwLocal (deferred tax) are the two main tax provision account hierarchies.
TXP_CurTaxExp is the account hierarchy used in Schedule 5 Current Provision (Actuals). It is also used in the forecast scenarios (Schedule 5 FC Current Provision).
TXP_CurTaxRet is a subset of TXP_CurTaxExp and is the account hierarchy used in Schedule 2 RTP.
TXP_NatDeferredwLocal is the account hierarchy used in Schedules 6a and 6b for Deferred Tax. It is also used in forecast scenarios.
TXP_TaxAccount Setup Notes
- Do not modify these members except as noted below.
- Do not add children to parent accounts or create new parent accounts except as noted below.
- ALL accounts may have the member description modified.
- Includes accounts that are used for both national and local data as well as local only accounts.
- Includes accounts that are “Discrete” only. When adding a new discrete account, we recommend adding the account to an existing “discrete” parent.
- Tax Accounts have Account Type = Asset.
TXP_CurTaxExp – Total Current Tax Expense
TXP_PTIBATotal – Total Pretax Income Book Adjustments
- Add parent children and / or base members.
- Follow prefix naming convention TXP_PTIBA.
- 1 base member is required.
TXP_PermDiffTotal (TXP_PD) & TXP_TempDiffTotal (TXP_TD)
- Rename and / or add parent children, following the naming convention.
- E.g., add sibling to TXP_PDMuni with member name beginning “TXP_PD”.
- Rename and / or add base members, following the naming convention.
- E.g., rename TXP_TD0005 to TXP_TD100.
- 1 parent and 1 base member are required.
- TXP_PDLTotal & TXP_TDLTotal (Local only accounts)
- Only change the parent description.
- Add parent children; follow naming convention TXP_PDL/TXP_TDL.
- Rename and / or add base members; follow naming convention TXP_PDL/TXP_TDL.
- Keep 1 base member.
TXP_TaxLossesCF
- Rename and / or add base members, following the naming convention.
- E.g., rename TXP_TaxLossCF0001 to TXP_TaxLossCF0100.
- 1 base member is required.
TXP_TaxLocalDeduction
- Holds the National Benefit from Local Jurisdictions.
- Do not remove or rename.
TXP_Apport_Total (Local Only Accounts)
- Add or rename base member accounts only.
- Follow the naming convention TXP_AppPD, TXP_APPTD, TXP_AppTaxLossCF.
- 1 base member for each parent is required.
TXP_TaxLocalExp
- Local tax entered as tax effected.
- Do not remove or rename.
TXP_OtherTaxTotal & TXP_TaxCreditCFTotal
- Rename and / or add base members, following the naming convention: TXP_OtherTax or TXP_TaxCreditCF.
- 1 base member is required for each parent.
TXP_TotalAdjustments
- TXP_AdjustmentRTP_Total – do not modify this hierarchy.
- TXP_AdjustmentOther_Dscr
- Add or rename base member accounts only.
- TXP_TotalAdjustments
- TXP_Adjustments_GL & TXP_Adjustments
- Rename and / or add base members, following the naming convention TXP_Adjustment.
- 1 base member is required.
TXP_NatDeferredwLocal – Deferred Tax Account Hierarchy
TXP_TempDiffTotal
- This is the same parent as in TXP_CurTaxExp.
TXP_TaxLossesCF
- This is the same parent as in TXP_CurTaxExp.
TXP_TaxLossesCY
- Add base members.
- Follow naming convention TXP_TaxLossCY.
- 1 base member is required.
TXP_TaxCreditCFTotal
- This is the same parent as in TXP_CurTaxExp.
TXP_EquityTotal
- Add base members.
- Follow naming convention TXP_Equity.
- 1 base member is required.
TXP_ApportTempDiffTotal
- This is the same parent as in TXP_CurTaxExp.
TXP_ApportTaxLossesCF
- This is the same parent as in TXP_CurTaxExp.
TXP_VA
- Add base members.
- Follow naming convention TXP_VA.
- 1 base member is required.
- Accounts will be taxed.
TXP_VACreditTotal
- Add base members.
- Follow naming convention TXP_VACredit.
- 1 base member is required.
- Accounts will not be taxed.
TXP_VA_Apport (Local only)
- Add base members.
- Follow naming convention TXP_VA_Apport.
- 1 base member is required.
- Accounts will be taxed at deferred rate only (already apportioned).
TXP_TotalDefLocal (National only)
- Holds the National Benefit from Local Jurisdictions.
- Do not remove or rename.
TXP_OtherTaxAccounts
Contains three hierarchies derived from the Current Tax Expense and Deferred Tax:
The TXP_ETRStatTotal (Total Statutory ETR) and TXP_ETRConsolTotal (Total Consolidated Rate Reconciliation) account hierarchies are designed to report the Statutory Effective Tax Rate (ETR) and the Consolidated ETR. Where possible accounts in the two ETR hierarchies are the same as in the Current Tax Expense hierarchy (TXP_CurTaxExp).
TXP_ETRStatTotal is used to populate Schedule 8 Local ETR. This also populates the forecast scenarios: Schedule 8 FC Local ETR.
TXP_ETRConsolTotal is used to populate Schedule 9 Consolidated ETR. This also populates the forecast scenarios: Schedule 9 FC Consolidated ETR.
TXP_TxRAccountRecon is used to populate Schedule 7 Tax Account Reconciliation. This also populates the forecast scenarios Schedule 7 FC Tax Account Reconciliation.
TXP_ETRStatTotal and TXP_ETRConsolTotal Setup Notes
- Tax Accounts have Account Type = Asset.
- The original accounts should not be modified as Business Rules and other Objects are based on these members.
- New accounts should only be added when a change or addition to the Current Tax Expense or Deferred Tax is made.
- UD2 member TXP_Tax_SETR (Statutory ETR) is used to hold this tax data.
- UD2 member TXP_Tax_CETR (Consolidated ETR) is used to hold this tax data.
- Accounts that are required for the ETR calculations and cannot be based on existing accounts are prefixed TXP_ETR.
- These accounts are mainly based on the Deferred Tax Flow (TXP_TaxClosing) member that it is associated with, e.g., account TXP_ETRRCOpening works with Flow Member TXP_RCOpening. This is to facilitate Business Rules and easier association for the Implementers and users.
- The different organization of the two hierarchies is primarily for reporting purposes.
When to Add a New Account
- When a new TXP_TaxClosing Flow Member is added.
- Two new ETR accounts will need to be created and added to the correct parent accounts, TXP_ETRVATotal and TXP_ETRDeferredTotal, except when added as a base member of the following parent members:
- TXP_OtherOpenAdj_Dscr – the parent level data only is included.
- TXP_DefOther_NonDscr – the parent level data only is included.
- TXP_DefOther_Dscr – the parent level data only is included.
- TXP_TotalDefBSO – these members are not included in the ETR calculation.
- TXP_FXTotal – these members are not included in the ETR calculation.
- Two new ETR accounts will need to be created and added to the correct parent accounts, TXP_ETRVATotal and TXP_ETRDeferredTotal, except when added as a base member of the following parent members:
