Automatic adjustments

You can set adjusting entries in either the Home window or TAS to automatically adjust certain items of taxable income and expense based on selected limitations or computations for all associated entities and binders.
You can set adjustments  to automatically adjust certain items of taxable income and expense based on selected limitations or computations. Tax adjustments are entered in a journal entry format, producing the book/tax reconciling differences on various Federal forms, with the assignment of a debit/credit impact TRC/TCC code to each adjustment specifying its presentation on the Schedule M-1.
Automatic calculations include:
  • Reverse account balances to zero
  • Adjust for differences between beginning and ending balances
  • Close net income
  • Reduce amounts by a user-defined percentage

Common automatic adjustments

Common automatic adjustments
Entry
Drop-down
Balance entry account
Reverse option
End / beginning difference
% of difference
Reverse federal income tax provision (FIT)
Target account: Fed income tax provision


Source account: Fed income tax provision

Retained earnings (unappropriated)
Negate
Ending
100%
Meals and entertainment
Target account: meals & entertainment


Source account: meals & entertainment

Retained earnings (unappropriated)
Negate
Ending
50%
Allowance for bad debt
Target account: bad debt reserve


Source account: bad debt reserve

Bad debt expense
Negate
Difference
100%
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