Execute deferred tax accounting

[Execute deferred tax accounting] calculates deferred tax assets and depts based on the closing balance entered in [Tax consequences worksheet entry] and the legal effective tax rate in [Register legal effective tax rate], creating auto-journal data of the deferred tax accounting.  However, when any journal A/C is not specified for "Deferred tax accounting A/C setup" in [Parameter setup] of [System custodian module], auto-journal data won't be created while the accounting process is made.
 →  To Operation Procedure

Screen Transition

[Deferred tax accounting module]
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[Entry]
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[Execute deferred tax accounting]
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[Execute deferred tax accounting] screen

Item Setup

[Header]

• Data level
  Enter the data level to be summed up.  No modification can be made after clicking the "Refer (X)" button and displaying the spread.
• Accounting year
  Enter the "Accounting year" and "Period."  The default displays the subsequent period of the current period that has been entered earlier.  On the accounting period, the entry-enabled number is 1-12 when "Term" is selected as the entry period of the entered accounting year and each number corresponds to the term.  When "Quarter" is selected, the entry-enabled number is 1-4 and each number corresponds to the quarter.  When "Half yearly" is selected, 1 or 2 can be entered, which represents the first half or second half, respectively.
• Legal effective tax rate
  The legal effective tax rate is displayed in accordance with "Accounting year," "Period," and "Data level."
• Entry period
  The entry period is displayed in accordance with the accounting year.
• Auto-journal dept
  Select the department to be allocated when auto-journalizing.
• Details of voucher
  When the deferred tax accounting is already performed for the specified accounting year and period, the field displays "Executed."  Meanwhile, when the deferred tax accounting is not performed for the specified accounting year and period, the field is left blank. 
  Clicking the ".." button allows you to check the details of journal data.

[Spread]

• No., Temporary discrepancy item name, Name 2, Name 3, Add/Subtract, Short/Long term type
  The items registered in [Register tax consequences worksheet template] are displayed.
• Closing balance
  The closing balance Amt registered in [Tax consequences worksheet entry] is displayed.  No modification can be made.
• Short-term deferred tax assets
  Enter the closing balance of short-term deferred tax assets.  Only the temporary discrepancy items of which "Future subtract" is selected as the discrepancy type and "Short-term" or "Short-term tax credit" is selected as the short/long-term type are displayed.  The default displays the amount calculated by that the closing balance is multiplied by the legal effective tax rate for "Short-term" items.  Meanwhile, for "Short-term tax credit" items, the closing balance is simply displayed.  This item can be modified.
• Long-term deferred tax assets
  Enter the closing balance of long-term deferred tax assets.  Only the temporary discrepancy items of which "Future subtract" is selected as the discrepancy type and "Long-term" or "Long-term tax credit" is selected as the short/long-term type are displayed.  The default displays the amount calculated by that the closing balance is multiplied by the legal effective tax rate for "Long-term" items. Meanwhile, for "Long-term tax credit" items, the closing balance is simply displayed. This item can be modified.
• Short-term deferred tax debts
  Enter the closing balance of short-term deferred tax debts.  Only the temporary discrepancy items of which "Future subtract" is selected as the discrepancy type and "Short-term" or "Short-term tax credit" is selected as the short/long-term type are displayed.  The default displays the amount calculated by that the closing balance is multiplied by the legal effective tax rate for "Short-term" items.  Meanwhile, for "Short-term tax credit" items, the closing balance is simply displayed.  This item can be modified.
• Long-term deferred tax debts
  Enter the closing balance of long-term deferred tax debts.  Only the temporary discrepancy items of which "Future subtract" is selected as the discrepancy type and "Long-term" or "Long-term tax credit" is selected as the short/long-term type are displayed.  The default displays the amount calculated by that the closing balance is multiplied by the legal effective tax rate for "Long-term" items. Meanwhile, for "Long-term tax credit" items, the closing balance is simply displayed.  This item can be modified.
• Total
  The total Amt of "Closing balance," "Short-term deferred tax assets," "Long-term deferred tax assets," "Short-term deferred tax debts," and "Long-term deferred tax debts" is displayed in the last row of the spread.

[Buttons]

• Updt sum
  For the items of which "Short-term" or "Long-term" is selected as the short/long-term type, the Amt of the deferred tax assets/liability will be recalculated with the formula of "Closing balance × Legal effective tax rate." Meanwhile, for the items of which "Short-term tax credit" or "Long-term tax credit" is selected as the Short/Long-term type, the Amt of the deferred tax assets/liability is simply displayed as closing balance.
• Clear
• Refer
  Clicking this button displays, in the spread, a list of summarized temporary discrepancy items that meet the condition specified in [Header].
• Execute
  Clicking this button calls the [Transfer voucher] screen, automatically creating journal of the deferred tax accounting.  The data can also be modified.
• Delete
• Exit

Auto-journal

[Execute deferred tax accounting] automatically creates journal, but you need to earlier set up the A/C to be used in [Parameter setup] of [System custodian module].  In [Parameter setup], you have to also specify if short-term deferred tax assets/liability is balanced out.

The details of transfer vouchers (deferred tax accounting voucher) created in [Execute deferred tax accounting] are as follows:

A/C	Contents of details
Short-term deferred tax assets	Entry of short-term deferred tax assets
Corporate tax etc. adjustment	Entry of corporate tax etc. adjustment for short-term deferred tax assets
Short-term deferred tax debts	Entry of short-term deferred tax debts
Corporate tax etc. adjustment	Entry of corporate tax etc. adjustment for short-term deferred tax debts
Long-term deferred tax assets	Entry of long-term deferred tax assets
Corporate tax etc. adjustment	Entry of corporate tax etc. adjustment for long-term deferred tax assets
Long-term deferred tax debts	Entry of long-term deferred tax debts
Corporate tax etc. adjustment	Entry of corporate tax etc. adjustment for long-term deferred tax debts
Short-term deferred tax assets	Offset of short-term deferred tax assets/liability (when offset option is selected).
Short-term deferred tax debts	Offset of short-term deferred tax assets/liability (when offset option is selected).
Long-term deferred tax assets	Offset of long-term deferred tax assets/liability (when offset option is selected).
Long-term deferred tax debts	Offset of long-term deferred tax assets/liability (when offset option is selected).

Notes:

• Because the entry of the deferred tax accounting should be made in an order of period, the system controls not to allow you to skip a subsequent term, quarter or year.  For example, when the entry of the deferred tax accounting for March is made, the next term that you are allowed to enter the deferred tax accounting is only April, so no entry can be made for May and the later terms.  If you are trying to make an entry for May or afterwards, the error message "Cannot execute because the deferred tax accounting for the period before the specified period has not been executed" appears.
  In addition, you can only modify or delete the deferred tax accounting data for the latest accounting year and term.  Under the above example, the modification/deletion-enabled month is March, but if you select February to be modified, the error message "Cannot be changed/deleted because the deferred tax accounting has been executed for the period after the specified period" appears.
• A deferred tax accounting voucher is created with "Unapproved" status.  The system controls not to allow you to modify/delete such deferred tax accounting data after the deferred tax accounting voucher is approved. If you are trying to modify/delete the deferred tax accounting data after the approval, an error message appear when you click "Execute" button, saying "An already created tax consequences voucher cannot be executed because it has already been approved."
• When the entry period of the deferred tax accounting is "Term," the system controls not to allow you to additionally enter/modify/delete the data of the deferred tax accounting for the term when monthly update has been completed.  When you try to enter/modify/delete the data, the error message "Cannot execute/modify/delete the data of the term after term close" pops up.
  Meanwhile, when the entry period of the deferred tax accounting is "Quarter," "Half-year" or "Year" and monthly update has been done for all terms of the deferred tax accounting, the system controls not to allow you to additionally enter/modify/delete the data.  When you try to enter/modify/delete the data, the error message "Cannot execute/modify/delete the data of the term after term close" pops up. And when monthly update has been done for some terms of the deferred tax accounting, the system controls not to allow you to choose the monthly update date as the voucher entry date.
  The system controls not to allow you to make a reference of the deferred tax accounting data for the period when monthly update has been done.