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About International Summary Accounts Chart

A chart of accounts provides the format needed for entering general ledger information, adjusting journal entries and allocation and apportionment data.
International users have 2 types of charts of accounts:
  1. the Federal (entry) chart
  2. the International (summary) chart
Trial balance amounts and adjusting journal entries are posted against the federal or entry chart. However, this level of detail is unnecessary for international calculations and may cause performance issues so the system has a summary chart to use for international purposes.
The International Summary Chart is a list of account numbers and descriptions (without balances) to which you assign account types and SIC codes. Account types identify an account as a specific income, expense or balance sheet item and are used during calculations to determine how an account's handled. A SIC code represents a major product category and must be entered for all sales and R&D accounts in order for the proper construction of R&D apportionment methods and the subsequent allocation of R&D expenses.

How does the International Summary Chart affect ONESOURCE Income Tax?

In the Working Trial Balance, you post book, tax and reclass adjustments against the trial balance amounts entered in your federal chart for an entity. Your federal or entry chart must be cross-referenced to an international or summary chart in order for amounts to flow to the international application.
The
International Cross Reference
 screen's where you establish the many-to-one relationships between the accounts in your federal and summary charts. These relationships are used to collapse the tax-adjusted amounts in the Working Trial Balance to the summarized display on the Sourcing Workpaper. In addition to determining the format you use to specifically allocate and apportion balances, the International Summary Chart controls the presentation of many international reports.

How many charts are needed?

When accounting structures permit, use common federal (entry) and international (summary) charts for all entities. This ensures consistency for all entities and facilitates administration, presentation, and maintenance. However, because common charts are sometimes not possible due to diverse business operations or accounting systems, ONESOURCE supports multiple federal and international summary charts.
If you want to have separate international charts for domestic and foreign entities, you can cross-reference a single federal (entry) chart to multiple International Summary Charts. If you have multiple federal charts due to various accounting systems, you can cross-reference each federal chart to the same International Summary Chart.

Data entry for International Summary Chart

You can enter data either manually or by importing it.
  1. Select the International Summary Chart and select
    Edit
    .
  2. Select Insert and enter the following for each account:
    1. Number
       - User-defined, alphanumeric, 45 character maximum.
    2. Description
       - User-defined, alphanumeric, 65 character maximum.
    3. Account Type
       - System-defined codes that classify every account into a revenue or expense item. Account types affect the application of R&D expenses and interest apportionment rules, indicate creditable income tax accounts, identify apportionable expenses and affect the construction of apportionment bases, determine the report lines to which Sourcing Workpaper amounts will flow, and can be used as a sort key to sort the chart.
    4. SIC Code
       - Standard Industrial Classification Code. This code's applied to sales accounts and R&D expense accounts to properly apply R&D apportionment rules.
  3. Repeat the process for each account entered in the International Summary Chart.
  4. When finished, select
    Save
    .

Account types for computed Section 250 adjustments

The computed
Section 250 adjustments
 for Form 8993 transfer to
Income Sourcing
 during the TIBS compute to the 1st summary account with each of the following account types:
  • 5850 – Section 250(a)(1)(A) - FDII
  • 5860 – Section 250(a)(1)(B) – GILTI

Import accounts to an International Summary Chart

  1. In an open International Summary Chart, select
    Import
    .
  2. Enter the information.
  3. Select the source file and import template (or create new).
  4. Select the name of a data element from Import Item. The sequence in which the data elements are defined won't affect system performance. Specify the position of the selected data element in the import source file. Always select the appropriate cell from the first row of import data. Rows are numbered in ascending order.
  5. Repeat until the positions of all required and optional data elements have been defined. Select
    OK
     and then
    Import
    , then
    Close
    . If you receive an error message, review the error log.

This article applies to:

  • Product: ONESOURCE Income Tax

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