The following has been taken from the Tax Provision Blueprint "Instruction Guide" starting at page 49.
See KB article: "Tax Provision Blueprint Instruction Guide - PV7.3.0 SV100"
See KB article: "Dimension Member Names - Renaming and Deleting"
See KB article: "Dimension Text Fields - Summary"
Entities
XFW_TXP_Entities is the Tax Provision Blueprint sample Entity Dimension. It is provided with sample entities to show Reporting and Forms. A Legal or Tax reporting structure should be built in the XFW_TXP_Entities Dimension if the desired entity structure is not available in the Financial Model Entities Dimension.
If the design decision is made to use the XFW_TXP_Entities, we recommend that this structure share base entity members (through a linked cube setup) with an existing finance structure that is used for consolidation. If distinct base entities must be created for tax, we recommend adding a _TXP suffix to each Entity Member (Houston_TXP). This makes writing Business Rules and Entity mapping easier and consistent across solutions.
The sample entities that are included in XFW_TXP_Entities should be used as a reference for how to set up the Text properties for various situations, including National and Local Jurisdictions. Prior to data entry, all sample entities should be removed, except the TXP_GLTaxAdmin – Global Tax Admin entity.
If the XFW_TXP_Entities Dimension is replaced as the assigned Entity Dimension for the XFW_TXP Cube, the TXP_GLTaxAdmin – Global Tax Admin entity must be removed from XFW_TXP_Entities and created in the Legal/Tax Hierarchy in the Entity Dimension that is being used. Do not change the Member Properties that are initially assigned to TXP_GLTaxAdmin – Global Tax Admin. The Tax Provision Blueprint application will not function properly without the TXP_GLTaxAdmin entity in the assigned Financial Model Entity Dimension under the Tax/Legal Hierarchy that is used. The TXP_GLTaxAdmin entity should be a sibling to the main Tax Entity hierarchy (TXP_Legal_CTX in Tax Provision Blueprint).
The Tax Provision Blueprint application uses the Entity / Jurisdiction (UD1) grouping to help drive the results. UD1 is the Tax Jurisdiction that corresponds with the National (country) and Local Jurisdictions (where applicable) in which the legal entity will be taxed. There can only be one national jurisdiction associated with an entity.
Each Entity Member (includes all entities added to XFW_TXP_Entities or the current entities in the substituted Financial Model Entity Dimension for Tax/Legal hierarchy) must add the following Entity Member Properties. Follow the guidelines in the Entity / UD1 Table below for sample setups.
Entity Notes:
General
- Alternate hierarchies can be used.
- All parent members must have the word Total in the description. This will help in the formatting of Cube Views.
- If intercompany (IC) is needed in the app., then flag the appropriate base level entities as “Is IC Entity=True”.
UD1 Constraint
- Used on all entities (base and parents) – this drives the Finance Business Rule to execute.
- Limit’s what is a valid intersection.
UD7 Constraint
- Used on all base level entities and up to country level parent entities.
- Limit’s what is a valid intersection.
UD1 Default
- Used on all base level entities but not required on parent entities.
Text 7
- Used on any base entity that calculates both a National and a Local tax provision and calculates a National Benefit for the Local data (such as U.S. Federal Benefit of State): NatBenefit=Yes.
- Also used to tell the app if an entity is a Filer (only used for group filing – either National or Local): NatFiler=Yes and / or LocalFiler=Yes – base entity only.
- If a base entity requires more than one setting, use a comma to separate the two settings.
- NatBenefit=Yes,NatFiler=Yes,LocalFiler=Yes
- All other base entities – leave the property blank.
- All sub-country/country level parent entities – leave the property blank.
- At parent entities above the country level, use SETR=No to stop the parent entity from appearing on the Statutory Waterfall reports.
Text 8
- Required for all Tax entities (base and parent level).
- This is used to help determine the UD1 members.
- UD1 member that will vary by entity: base entity that calculates both a National and a Local tax provision; base entity that calculates only a National tax provision; parent entity.
Here is a more detailed list of what each entity setting represents:
UD1 Constraint: This limits the valid UD1 jurisdictions available for the entity. This ensures that invalid jurisdictions are not available for data entry (i.e., using a Germany JD on a US entity). For entities that have local jurisdictions, this member should be a parent (i.e., Entity: TXP_US_101 -> UD1 Constraint: TXP_US_Total). If there are no local jurisdictions for the entity, then the UD1 Constraint should be the National JD (i.e.: Entity: TXP_UK_101 -> UD1 Constraint: TXP_UK). For entity parents above the country level, use the member TXP_TotalNational.
Note: If Finance is using or planning to use UD7 Constraints, UD1 Defaults, Text 7, or Text 8 fields, then it’s suggested to use the “Tax” / “ScenarioType7” / “ScenarioType8” Scenario Types and any other scenario types that are utilized in the tax cube.
UD7 Constraint: This limits the valid UD7 group filing entities available for the entity. This ensures that invalid group filing entities are not available to enter data into (i.e.: using a Canadian group filer entity on a US entity). The UD7 Constraint should be the parent country member (Entity: TXP_CA_115 -> UD7 Constraint: TXP_Canada_Total). If an entity is not part of a group filing country (either National or Local), then use “None”. Parent entities above the country level should also be “Root”.
UD1 Default: For base level entities and parent country entities, use the National jurisdiction (i.e. Entity: TXP_UK_Total -> UD1 Default: TXP_UK). For parent entities above the country level, use the “None” member.
Parameters that use UD1 Default:
UD1_Default_TXP
Text 7: This field is used for four purposes listed below:
- NatBenefit=Yes
- Tells the system whether to execute the National Benefit from Local JD’s for that entity.
- See CV: Schedule LP 05_06a National Process excl Local JD_TXP.
- BR: TXP_BusinessRules:
- Schedule5_6NationalBenefitLocalCurrency
- Schedule8LocalRateReconciliationETR
- Schedule9ConsolidatedRateReconciliationETR
- LocalFiler=Yes
- This tells the app that this entity will be a Local Filer entity (for Group Filing Countries only).
- Parameters that use this:
- Entity_FilerType_TXP
- Entity_FilerType_MFEntity_TXP
- WF_TaxEntities_WFText2_P1_TXP
- NatFiler=Yes
- This tells the app that this entity will be a National Filer entity (for Group Filing Countries only).
- Parameters that use this:
- WF_TaxEntities_WFText2_P1_TXP
- SETR=No
- Used in the Home Page dashboard waterfall report. Removes parent entities above the country level from the entity combo box.
- Parameters that use this:
- Tax_Entities_SETR_TXP
U1#XFMemberProperty(DimType=Entity, Member=|!WF_TaxEntities_WFText2_P1_TXP!|, Property=Text8)
Some of the parameters that use Text 8:
- UD1_JD_Nat_LV_TXP
- UD1_JD_Nat_TXP
- UD1_JD_Nat_DM10aAdmin_TXP
- UD1_JD_Local_TXP
- UD1_JD_Local_FC_TXP
- UD1_JD_Local_TaxEntities_TXP
Business Rules that use Text 8:
- TXP_BusinessRules: variable “Jurisdiction”
- TXP_Copy_Data EntityText8
- TXP_Copy_Data_FCST EntityText8
- TXP_MemberList
- TXP_ParamHelper: GetEntityText8
Some of the CV’s that use Text 8:
- Sch_05c_Review_NatGF_No_Local_TXP
- Sch_05cFC_Review_NatGF_No_Local_TXP
- Sch_05c_Review_NatGF_Yes_Local_TXP
- Sch_05cFC_Review_NatGF_Yes_Local_TXP
- Sch_DM20a_Data Copy Provision_TXP
- Sch_DM20aFC_Data Copy Provision_TXP
- Sch_DM20aAdmin_Data Copy Provision_TXP
- Sch_DM20aAdminFC_Data Copy Provision_TXP
- Sch_LP05_06_National Process excl Local JD_TXP
- Sch_LP05_06_FC_National Process excl Local JD_TXP
- 10d Sch 05 Local Consol_TXP
- 10d FC Sch 05 Local Consol_TXP
- 20d Sch 06 Local Consol_TXP
- 20d FC Sch 06 Local Consol_TXP
- 25d Sch 07 Local Consol_TXP
- 25d FC Sch 07 Local Consol_TXP
- 80a_Stat_ETR_Analytics_TXP
- 80b_Stat_ETR_Waterfall_TXP
There MUST be a Text 8 on ALL Tax entities (all base entities and all parent entities). There is a section in the main BR (TXP_BusinessRules) that looks to see if there is something in the entity Text 8 field. If there is nothing, none of the Tax Provision Blueprint rules will be executed for that entity.
If there is no Text 8, the message displayed below will get written to the Error Log. No indication will be rendered to the user during a calculation or consolidation. So, it is important that the admin review the Error Log on a regular basis. This is especially true during the development of the app.
Note: US entities TXP_US_LegalEntityA, TXP_US_101 and TXP_US_107 have their entity attributes set at the “Tax” Cube Type and the “Tax” Scenario Type as an example. All other test entity attributes are set at the “Default” Cube or Scenario Type.
There are a few CV’s that use the XFMemberProperty to get the UD1 default or the Text 8. In order to make this dynamic to the Scenario Type and WF time period associated to the Scenario, a parameter has been created called “WFScenarioType_TXP”.
The XFBR rule dynamically gets the scenario type associated with the scenario.
When referencing the UD1Default (notice it is VaryByCubeType), we use:
VaryByCubeType=[Tax], VaryByTime=[WFTime]
When referencing the Text 7 or Text 8 (use the new parameter – notice it is VaryByScenarioType):
VaryByScenarioType=[|!WFScenarioType_TXP!|], VaryByTime=[WFTime]
The following CVs are impacted by these two options:
XFW_Tax Forms Actual (TXP) folder:
- Sch_DM10a_Data Copy Provision_TXP
- Sch_DM20a_Data Copy Provision_TXP
- Sch_DM20aAdmin_Data Copy Provision_TXP
- Sch_DM20b_Data Copy Return_TXP
- Sch_DM30a_Data Copy Provision_TXP
- Sch_DM30b_Data Copy Return_TXP
- Sch_LP05_06_National Process excl Local JD_TXP
XFW_Tax Forms FCST (TXP) folder:
- Sch_DM10aFC_Data Copy Provision_TXP
- Sch_DM20aFC_Data Copy Provision_TXP
- Sch_DM20aAdminFC_Data Copy Provision_TXP
- Sch_DM30aFC_Data Copy Provision_TXP
- Sch_LP05_06_FC_National Process excl Local JD_TXP
XFW_Tax Reports Actual (TXP) folder:
- 80a_Stat_ETR_Analytics_TXP
- 80b_Stat_ETR_Waterfall_TXP
XFW_Tax CV’s All Workflows Actual (TXP) folder:
- Sch_05b_Review UD2 Gross and Tax_TXP
- Sch_05c_Review_NatGF_No_Local_TXP
- Sch_05c_Review_NatGF_Yes_Local_TXP
- Sch_06b_NatGF_No_DefLocal Review_TXP
- Sch_06b_NatGF_Yes_DefLocal Review_TXP
XFW_Tax CV’s All Workflows FCST (TXP) folder:
- Sch_05bFC_Review UD2 Gross and Tax_TXP
- Sch_05cFC_Review_NatGF_No_Local_TXP
- Sch_05cFC_Review_NatGF_Yes_Local_TXP
- Sch_06bFC_NatGF_No_DefLocal Review_TXP
- Sch_06bFC_NatGF_Yes_DefLocal Review_TXP
The following parameters uses these options:
- UD1_JD_Nat_TXP
- UD1_JD_Nat_LV_TXP
- UD1_JD_Nat_DM10aAdmin_TXP
- UD1_JD_Local_TXP
- UD1_JD_Local_FC_TXP
- UD1_JD_Local_TaxEntities_TXP
