The Temporary Difference form is used to enter the temporary differences that are not automated in the system. Amounts include temporary differences, tax losses, tax credits, federal or state credits, and the related valuation allowances. You can also enter activity such as current-year and prior-year adjustments and nonprovision/equity items.

Each temporary difference may be set up as either Current or Non-Current for Balance Sheet classification purposes. To view these classifications, open the Temporary Differences Properties report. Temporary differences, Tax Losses, and Valuation Allowance (for example, current, noncurrent, and tax losses) adjustments are entered on a pretax basis. Tax credits and valuation allowance–tax credits are entered on a tax-effected basis. The following valuation allowance accounts are provided:

• Current temporary differences

• Noncurrent temporary differences

• Tax Losses

• Tax Credits

All valuation allowances should be negative values, except for current year or other adjustment amounts that are meant to reduce the valuation allowance.

The form contains the following members in the columns (across):

• Opening—Opening Balance—The prior year end temporary differences. It is populated automatically.

• PYAdj—Prior Year Adjustment (Restatement)—Used when the opening balance of a deferred tax asset/(liability) must be restated with no impact on the provision. This adjustment affects only the beginning balance of the deferred tax asset/(liability) and does not impact the deferred provision. The amounts are entered manually.

• TempDiffOpeningAdjusted—Opening Balance As Adjusted—The beginning-of-year balance after adjustments and is calculated (Opening + PYAdj).

• CYSys—Automated—The current-year book-tax difference automated in the current provision. This amount automatically flows to the temporary difference rollforward. Amounts for this column are automated only and impact the deferred tax expense.

• CYSysReversal—Automated Reversal—The reversal of the current-year book-tax difference automated in the current provision. This amount is automated based on the setting of equity temporary differences at the account level. Amounts for this column impact the deferred tax expense.

• CYSysTotalNoTR—Automated Total—The sum of CYSys and CYSysReversal.

• CYAdj—Adjustment—The current-year book-tax difference input in the current provision. This amount automatically flows to the temporary difference rollforward. Amounts for this column are manually input and impact the deferred tax expense.

• CYAdjReversal—Adjustment Reversal—The reversal of the current year book-tax difference manually input in the current provision. This amount is automated based on the setting of equity temporary differences at the account level. Amounts for this column impact deferred tax expense.

• CYAdjTotalNoTR—Adjustment Total—The sum of CYAdj and CYAdjReversal.

• CYNoTR—Total—The sum of CYSysTotal and CYAdjTotal.

• RTADO—Return to Accrual—The adjustments to temporary differences based on the Return to Accrual form. This amount is automated from the Return to Accrual form and affects deferred tax expense.

• AuditDO—Audit Settlements—The adjustment to temporary differences resulting from audit settlements. This amount is manually entered to the temporary difference rollforward and affects deferred tax expense.

• OtherSys—Other Adjustments— Automated—The automated adjustment to temporary differences from any other type of adjustment. This amount can be automated from supplemental schedules in Tax Provision.

• OtherDO—Other Adjustments—The adjustment to temporary differences resulting from any other type of adjustment. This amount is manually entered to the temporary difference rollforward and affects deferred tax expense.

• OtherTotal—Other Adjustments Total—This is the sum of OtherSys and OtherDO.

• TransfersDO—Transfers—The adjustment to temporary differences resulting from transfers of assets/liabilities and the related temporary differences. This amount is manually entered to the temporary difference rollforward and affects deferred tax expense.

• PYAAdjDO—Prior Year Adjustments—The adjustment to temporary differences resulting from prior year adjustments. This amount is manually entered to the temporary difference rollforward and affects deferred tax expense.

• ContingencyDO—Contingency—The adjustment to temporary differences resulting from tax contingencies related to temporary differences. This amount is manually entered to the temporary difference rollforward and affects deferred tax expense.

• TempDiffCYTotal— P&L Total—The total of CY, RTADO, AuditDO, OtherDO, TransfersDO, PYAAdjDO, and ContingencyDO.

• AcqNP—Acquisitions—For the adjustment to temporary differences resulting from the acquisition of assets/liabilities and the related temporary differences. This amount is automatically transferred from the Acquisitions form. Amounts do not impact deferred tax expense.

• DisposalsNP—Disposals—For the adjustment to temporary differences resulting from the disposals of assets/liabilities and the related temporary differences. This amount is manually entered to the temporary difference rollforward and does not impact deferred tax expense.

• EquitySysNP—Equity System—For the adjustment to temporary differences resulting from equity transactions. This amount is automated based on equity temporary difference settings at the account level and does not impact the deferred tax expense.

• EquityAdjNP—Equity Adjustment—For the adjustment to temporary differences resulting from equity transactions. This amount is manually entered to the temporary difference rollforward and does not affect the deferred tax expense.

• EquityNPNTR—Total Equity—The total of EquitySysNP and EquityAdjNP.

• EquityRTANP—Equity Prior Year—For the adjustment to temporary differences resulting from equity transactions and return filing. This amount is automated based on equity temporary difference settings at the account level and does not impact the deferred tax expense.

• EquityOtherNP—Equity Other—For the adjustment to temporary differences resulting from all other equity transactions. This amount is manually input and does not impact the deferred tax expense.

• TempDiffEquityNPTotal—Equity Total—The sum of EquityNP, EquityRTA and EquityOtherNP.

• TempDiffNPTotal—Non P&LTotal—The sum of AcqNP, DisposalsNP and EquityNPTotal.

• TempDiffClosing—Closing Balance—The sum of OpenAdjusted, TempDiffCYTotal and TempDiffNPTotal.

The form contains the following members in the rows (down):

• TempGSTotal—Total Temporary Differences (GAAP to Stat)—The parent of base accounts that are user-defined upon implementation.

• TempSTTotal—Total Temporary Differences (STAT to Tax)—The parent of base accounts that are user-defined upon implementation.

• RTempTotal—Regional Temporary Differences—The parent of a base account that is user-defined upon implementation.

• REquityTempTotal—Total Equity Temporary Differences—The parent of base accounts that are equity in nature and are user-defined upon implementation.

• RTaxLossesTotal—Regional Tax Losses Total—The parent of a base account that is user-defined upon implementation.

• RTaxCreditTotal—Regional Total Tax Credits—The parent of system-provided base accounts that are used for Tax Credits that are deferred.

• RTaxAttribTotal—Regional Tax Attributes—The parent of a base account that is user-defined upon implementation.

• RVATotal—Regional Valuation Allowance—The parent of a base account that is user-defined upon implementation.