The following has been taken from the Tax Provision Blueprint "Instruction Guide" starting at page 89.
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"
UD1 Tax Jurisdiction
XFW_TXP_UD1 is Tax Provision Blueprint UD1 - Tax Jurisdiction Dimension. The Jurisdiction members are linked with the Entity Dimension to drive Business Rules calculations for the tax provision as well as reporting formats. Jurisdictions are grouped by National, Local, Domestic, and International. Do Not modify the existing parent members nor the naming convention used for base members. If an Entity has Local Jurisdictions, there must also be a National Jurisdiction assigned.
UD1 Tax Jurisdiction Notes
- Text 1 Properties are used on all base members.
- Text 2 Properties are used on base members for a National group filing tax jurisdiction.
- Alternate hierarchies are used.
- Aggregation weights are used.
- No Member Formulas are used. See the Finance BR TXP_BusinessRules.
- All parent members must have the word Total in the description. This will help in the formatting of cube views.
New base members should be created with the same Member Properties as their sibling members.
Each Entity Dimension Member needs to be assigned the appropriate UD1 - Tax Jurisdiction Member in the Entity Member Properties: UD1 Constraint, UD1 Default, and Text 8 field.
See also KB article: "Dimension - Entities".
All base level UD1 members must have a Text 1 of TXP_Local or TXP_National. This is used to drive parameters in the Tax Schedules. It is not necessary to put this on parent UD1 members.
Base level National members that are using National group filings must have the Text 2 populated with “NatGF=Yes”. For the Tax Provision Blueprint app, this applies to TXP_CA, TXP_LU and TXP_AE.
There are several alternate hierarchies to help with different Cube Views, Parameters, Business Rules, and Reporting.
National Jurisdiction
Tax Provision Blueprint includes 20 countries for National Jurisdiction. The naming convention is based on the 2-digit ISO Country Code: TXP_XX where XX is the ISO Code, (such as US for United States). The Domestic Jurisdiction should be the main reporting country for the Tax Provision Blueprint (which is presumably the same as the Finance Cube). In Tax Provision Blueprint, the Domestic Jurisdiction is the United States. If this is implemented for a different reporting country, Canada for example, then the Canadian Jurisdiction TXP_CA should be moved under TXP_TotalDomestic and TXP_US should be moved under TXP_TotalInternational.
Countries not required may be removed and countries required but not included may be added. Note the “TXP_XX” National Jurisdiction is included to facilitate circumstances that may not require a specific country Jurisdiction. This member may also be removed.
Local Jurisdiction
Local Jurisdictions work in conjunction with a single National Jurisdiction. Similar to the Total National Jurisdiction reporting hierarchy, there is a Total Local (TXP_TotalLocal) reporting hierarchy that distinguishes between Domestic and International. If the reporting country is different than the US, continuing our example above with Canada as the reporting country, move parent TXP_CA_Local under TXP_Domestic_Local and move parent TXP_US_Local under TXP_International_Local.
Here is an example of the steps necessary to create a new country level UD1 hierarchy that has both local jurisdictions and a National jurisdiction.
Total Country Local:
- Create TXP_UK_Local as a sibling to TXP_CA_Local under TXP_International_Local.
- Assign Member Properties similar to TXP_CA_Local.
- Add TXP_UK_Blended as the first child of TXP_UK_Local.
- All Local Jurisdictions should have one member with Blended as the Local code. E.g., TXP_UK_Blended.
- Assign Member Property -> Text 1: TXP_Local.
- Add the required Local Jurisdictions for UK, following the naming convention: TXP_UK_GB, where UK is the National Jurisdiction code and GB (Great Britain) is a 2-digit Local code.
- Assign Member Property -> Text 1: TXP_Local.
Country Total:
- Create TXP_UK_Total as a sibling to TXP_CA_Total.
- Assign Member Properties similar to TXP_CA_Total.
- Relationship Properties: set the Aggregation Weight for TXP_UK_Total to 0.00.
- Add TXP_UK as the first child.
- Add TXP_UK_Local as the next child.
Entity Dimension Member Properties to Update:
- Change UD1 Constraint for TXP_UK_101 (or any applicable UK entity) to TXP_UK_Total.
- Change Text 8 for TXP_UK_101 (or any applicable UK entity) to TXP_UK_Total.
- UD1 Default stays the same: TXP_UK.
- Update Text 7 if the National Benefit will apply to the UK entity.
Other:
- If group filing is required, then update UD7 for the UK entities.
No Local Jurisdiction Required
If Tax Provision Blueprint does not require provisioning for Local Jurisdictions, retaining one Local Domestic group and one Local International group is recommended to allow for future expansion and to minimize the impact on the Objects that are included with Tax Provision Blueprint.
