Pre-consolidation steps

General guidelines for preparing division returns

In the
Organizer
General Information
Basic Return Information
Entity Information
Entity type
pane for Entity Type (1065 only), select
Division
Complete the required entries for each return.
Consistently enter amounts at the same level of detail (in the Organizer) for all returns to ensure that white paper supporting statements correctly reflect dollar amounts and to prevent override. For example, if you enter dividends at the lowest level for 1 division, you'll need to enter dividends at the same level for every other member with dividends.
Clear any overriding entries to avoid unexpected results when consolidating. If you use overrides, the underlying detail necessary for accurate limitations during consolidation might be ignored, even when an override agrees with the detail.
Make sure each division is in balance. If not, the consolidated return will also be out of balance.
Since the divisional consolidation return is the return that is actually filed, the partnership name should not refer to Top or Consolidated Return and Lower Tier Partnerships or similar designations.
Even though eliminations might not apply, an elimination return is required to complete the consolidation process.
You'll need to enter partner information, including transfers, special allocations, and time segment allocations on the divisional consolidation return. Partnership information doesn’t consolidate.
Special allocation codes are assigned on the divisional consolidation return.
Section 179 limitations are computed on the divisional consolidation return and Schedule K is based on the combined amounts.
Schedules K-1 are computed based on the divisional consolidation return partner information and Schedule K items and amounts.
Enter Schedule M-3 and Form 8916-A information at the division level.
The Schedule M-1 detail rolls up from the division returns to the divisional consolidation return. Make Schedule M-1 entries at the division level.
Enter the Schedule M-2 detail at the Partnership level, where partner capital is reconciled.
Activity information will roll up to the Divisional Consolidation upon consolidation.
Activity numbers on a consolidated return might differ from the activity number on the divisions. Each time the Consolidate button is selected, the activity numbers on the consolidated return will change unless suppressed. To suppress the activity numbers from changing on subsequent consolidations, go to
Organizer
Consolidations
Step 3
Print Options
and select
Suppress transferring activities from divisions
.
For each type of activity, don’t duplicate the “unique number used to tie gains/losses.” This applies across divisions. For example, don’t enter 111 on a rental activity on division 1 and also on a rental activity on division 2. Use unique numbers on each activity type across all divisions.

TCC descriptions and codes

Full recompute